News
Govt plans Revenue Authority to monitor underperforming IRD, Excise dept, Customs
ECONOMYNEXT – Sri Lanka is in the process of creating a Revenue Authority and the 2024 budget is likely to announce it to monitor the three key state income collecting bodies due to their poor performance, sources who are aware of the new move said.
A Parliament Sectoral Oversight Committee on National Economic and Physical Plans has said the government’s tax collection is far behind the target due to the lethargic attitude of the three main state revenue collecting institutions: Inland Revenue Department (IRD), Excise Department, and the Customs.
The government has estimated a revenue target of 3.1 trillion rupees for this year, but as of September 26, the collection has been only 1.64 trillion rupees.
Officials say the government is likely to face a 637-billion-rupee or 20.5 percent shortfall in revenue if the current collection trend continues.
The International Monetary Fund (IMF) has estimated a 15 percent shortfall in revenue but has asked the government to expand the tax net.
“The next budget will announce the Revenue Authority which will monitor all three revenue collecting institutions,” a source who is aware of the budget told EconomyNext on condition of anonymity.
“The major issue is inefficiency and corruption in all three revenue collectors. The new Authority will try to accelerate tax collection through finding solutions for the current delays.”
The official data showed that only 161 Company Income Tax (CIT) files, 8,533 Individual Income Tax (IIT) files, 14 Partnership files, 104 Value Added Tax (VAT) files, and 2,094 Social Security Contribution Levy (SSCL) files have been opened in the first eight months of this year.
The Parliament Sectoral Oversight Committee led by Mahindananda Aluthgamage MP recommended establishing a body to monitor and regulate all three state revenue collecting institutions.
Government officials have said an internal resistance to implement the Revenue Administration Management Information System (RAMIS) acquired from Singapore has resulted in the government losing billions of tax collections.
“Unfortunately, we need to create such a monitoring authority because the government is not reaching its targets and we need to find the reasons. We know some tax officials don’t like this because they might lose their side businesses. But this time, we have no choice,” another government official said.
News
President chairs discussion on 2027 Budget Proposals for the Ministry of Industry and Entrepreneurship Development
A pre-Budget discussion to review the progress of projects implemented under the 2026 Budget allocations for the Ministry of Industry and Entrepreneurship Development and to discuss proposals for the 2027 Budget was held under the patronage of President Anura Kumara Dissanayake at the Presidential Secretariat on Monday (13) afternoon.
The progress of projects implemented by each division of the Ministry of Industry and Entrepreneurship Development and the institutions under its purview using the 2026 Budget allocations, as well as proposals for the 2027 Budget, were reviewed separately during the discussion.
The President also focused on the current status of the programme to establish industrial zones in areas including Dambulla, Ingiriya, Valachchenai, Millaniya and Katunayake. Discussions centred on issues that have arisen in allocating land and developing infrastructure, including electricity, water and roads, as well as the urgent measures required to resolve these issues.
President Dissanayake instructed officials to make every effort to complete all projects already initiated under the Ministry of Industry and Entrepreneurship Development within the stipulated timeframes. He also highlighted the need to clearly identify the Government’s role and limitations in relation to the industrial sector.
Attention was also drawn to the current situation regarding the development of state-owned enterprises, while issues affecting the sugar and salt industries and alternative proposals to address them were also discussed.
The current status of the process to consolidate institutions under the Ministry of Industry and Entrepreneurship Development was also reviewed. The President pointed out that large institutions had been established at different times to meet various needs, ultimately creating a situation in which such institutions had to be maintained using taxpayers’ money.
He stressed that the consolidation of these institutions should not only improve their efficiency but should also result in a relative reduction in operational expenditure compared with the costs incurred prior to consolidation.
Officials also briefed the President on the proposal to establish the Entrepreneurship and Industry Transformation Authority (EITA) and the programme proposed under the Authority.
Attention was also focused on the challenges faced by exporters and industrialists in carrying out their activities. The President instructed officials to submit proposals on general concessions that could be provided to encourage exporters and industrialists.
The President further pointed out that Sri Lanka could develop distinctive expertise by identifying several key areas within the industrial sector and providing the facilities necessary for their development.
Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando; Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe; Secretary to the President Dr Nandika Sanath Kumanayake; Chief of Presidential Staff Prabath Chandrakeerthi; Senior Additional Secretary to the President Russell Aponsu; Secretary to the Ministry of Finance, Planning and Economic Development Dr Harshana Suriyapperuma; and Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, along with officials from the Ministry of Finance and the Ministry of Industry and Entrepreneurship Development, participated in the discussion.
[PMD]
News
Prime Minister meets the Amir of the State of Qatar and conveys condolences on the passing of the Father Emir
Prime Minister Dr. Harini Amarasuriya, visited the State of Qatar to convey condolences on the passing of the Father Emir, at Lusail Palace in Doha on Wednesday (15 July).
Upon her arrival, the Prime Minister was received by His Highness Sheikh Khalifa bin Hamad bin Khalifa Al Thani, Minister of Interior of the State of Qatar. The Prime Minister subsequently met with His Highness the Emir of the State of Qatar, Sheikh Tamim bin Hamad Al-Thani.
During the meeting, Prime Minister Dr. Harini Amarasuriya conveyed to the Emir the deepest condolences of the Government and the people of Sri Lanka on the passing of the Father Emir, Sheikh Hamad bin Khalifa Al Thani.
The occasion was attended by the Deputy Emir of the State of Qatar Sheikh Abdullah bin Hamad Al Thani; Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani; Hassan bin Abdullah Al Ghanim, Speaker of the Shura Council; senior members of the Royal Family.
[Prime Minister’s Media Division]
News
Current El Niño Status in Sri Lanka
At present, El Niño conditions have developed and are classified as being at a weak level. Forecasts indicate a 63% probability of a very strong El Niño event developing during the period from November 2026 to January 2027. According to the National Oceanic and Atmospheric Administration (NOAA), there is approximately a one-third probability that El Niño will remain below a very strong intensity.
Typical Climatic Conditions Associated with El Niño
Based on analyses of past El Niño events that occurred between 1950 and 2025:
• Rainfall during July and August may be below normal, particularly in the dry zone areas.
• From October onward, rainfall is generally expected to be above normal.
• If a positive Indian Ocean Dipole (IOD) develops, enhanced rainfall conditions may continue until December.
Sectors Requiring Attention
• Appropriate measures should be taken for water resource management during July and August.
• Increased rainfall expected from October onward may lead to floods and landslides, requiring preparedness and close monitoring. The forecasts are important for sectors such as, Agriculture /Water management /Livestock /Health /Energy /Other climate-sensitive sectors
• Attention should be paid to official information issued by the Department of Meteorology.
Actions by the Department of Meteorology
The Department of Meteorology continuously monitors the evolving situation and issues:
• Weekly and monthly seasonal forecasts and Monthly analyses of rainfall data to monitor meteorological drought conditions.
As weather conditions are influenced not only by El Niño but also by other climatic factors, updated forecasts and advisories are regularly shared with relevant stakeholder organizations (Irrigation/ Water Management Committee /Department of Agriculture/National Building Research Institute/Disaster Management Centre (DMC)/Ministry of Health /Sri Lanka Land Development Corporation…etc). The Department also provides technical support to the committee established through a Cabinet decision to address climate-related impacts. The Department’s monthly rainfall outlook for July to September 2026 is attached
Monthly Rainfall Forecasts for July, August and September 2026
Month Rainfall forecast
July 2026

During July 2026, there is a higher probability of having near normal rainfall across most parts of the Western and Southern Provinces. The remainder of the country is expected to experience below normal rainfall.
August 2026

There is a higher probability of having below normal rainfall across most parts of the country during month of August 2026.
September 2026

There is a possibility of above-normal rainfall across most parts of the Western and Southern Provinces, while near-normal rainfall is expected in the Sabaragamuwa Province. Below-normal rainfall is likely in the remaining areas during September 2026.
Note: These long-range forecasts may change due to strong day-to-day atmospheric variability associated with the movement of weather systems such as atmospheric disturbances, low-pressure areas, and depressions, as well as intra-seasonal oscillations such as the Madden–Julian Oscillation (MJO). Therefore, in addition to the weekly and monthly forecasts, it is important to pay attention to the Department’s official announcements, weather advisories and warnings, as well as the daily weather forecasts issued by the Department of Meteorology.
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