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Only one income taxpayer paying over Rs. 300 mn. a year says Aluthgamage
Registered tax files 500,000, only 31,000 pay personal tax
Proposed amendments to Sri Lanka’s Inland Revenue Act will serve to address purported under performance of Inland Revenue Department (IRD) officials in a bid to enhance income tax collection, Government MP Mahindananda Aluthgamage said, noting that there is only one person in the country who pays taxes in excess of 300 million rupees.
Aluthgamage, a former minister and government MP who chairs the Sectoral Oversight Committee on National Economic and Physical Planning, told press conference on Thursday (Aug. 17) that the Inland Revenue Amendment Bill, once passed in parliament, will enable robust measures to address the issue.
The objective is to make formidable decisions regarding officials not contributing effectively to the state’s tax revenue enhancement, a statement from the president’s media division (PMD) quoted Aluthgamage as saying.
“There’s only one person in Sri Lanka who pays more than 300 million rupees in tax. Only three people between 50 million and 100 million rupees; only 16 people between 25 and 50 million;
One hundred and thirty seven between five and 10 million; 508 between two and five million; 804 between one and two million, and 5,473 between 500,000 and one million rupees,” he said.
The MP said Sri Lanka is still behind on a condition imposed by the International Monetary Fund (IMF) in exchange for a bailout package to increase state revenue.
“We’re trying to reach that target. The government will have to take some unpopular measures,” he said.
“Instead of taxing the small man on his salary, state revenue can be increased by taxing those who should be taxed,” he said, noting that the IRD is owed 904 billion rupees in tax collection.
An immediate overhaul of the nation’s tax policy is imperative, the PMD quoted Aluthgamage as saying.A substantial burden rests on the Inland Revenue Department, tasked with collecting the 904 billion rupees in taxes.
He said that Sri Lanka is the only country in the world permitting four tax appeals and it would take a “staggering” 15 years to dispose of these appeals.Speaking at a meeting of the committee he chairs on July 06, Aluthgamage said only 31,000 Sri Lankans out of some 500,000 persons with registered income tax files pay personal income tax while 328 registered limited companies out of 105,000 contribute to 82 percent of tax revenue.
Sri Lanka has been compelled to increase its tax revenue in the wake of the 2022 currency crisis, the worst in decades, and the subsequent agreement with the IMF over a 2.9 billion dollar extended fund facility. However, resistance to a hike in progressive personal income tax has been high, with many high-income earning professionals in the state sector holding a number of protests against the increase.
Value added taxes were also raised to 15 percent from eight percent last year. Another 2.5 percent cascading tax was imposed on top of VAT, the effect of which was estimated to be around 4.5 or more through the cascading effect.
The IMF had reportedly asked the cash strapped Sri Lankan government to impose taxes on all who receive monthly income of above 41,667 rupees as a prior condition for the bailout, butPresident Ranil Wickremesinghe’s administration had instead imposed a Pay As You Earn (PAYE) tax on everyone who earns over 100,000 rupees a month.
The IMF has defended the tax hike, arguing that creditors and investors will not support Sri Lanka because tax to GDP had fallen steeply. Taxes, including value added taxes were slashed in 2019 December to target a ‘persistent output gap’, after serial currency crises from flexible inflation targeting reduced growth. (Economy Next)
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Heat Index at Caution Level in the Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 25 April 2026, valid for 26 April 2026.
The Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-744649
Railway General Manager Ravindra Pathmapriya said on Friday that re-railing operations of the derailed ‘Sagarika’ train have already commenced and that services on the Coastal Line are expected to be restored within two days.
Addressing the media, he said the Minister had instructed officials to take all necessary measures to minimise inconvenience to passengers.
Commenting on the incident, he said: “The damaged train is a significant loss for us, especially as our fleet is already limited. We have incurred this loss and hope to rectify the situation promptly. However, we will need to deploy an alternative train in its place, and discussions are currently underway.”
The ‘Sagarika’ train, operating from Beliatta to Maradana, derailed near the Wadduwa Railway Station on Friday morning (24), causing severe damage to one track of the dual-line section.
The Railway Department has since restricted services on the affected Coastal Line up to Panadura Railway Station.
Arrangements have been made to transport passengers from Panadura to South Kalutara by Sri Lanka Transport Board (SLTB) buses, from where train services will resume towards Matara and Beliatta.
Meanwhile, the Department said efforts are underway to clear the obstruction and restore at least one track by the end of the day.
Public Health Inspectors (PHIs) have announced that registration of ‘Dansal’ organised islandwide in view of the upcoming Vesak Poya has already commenced.
President of the Sri Lanka Public Health Inspectors Union (PHIU), K.P. Boralessa, said that organisers intending to conduct ‘Dansal’ are required to inform and register with the PHI attached to the relevant area.
He said organisers must also provide details of the location and the type of ‘Dansal’ being conducted.
Following registration, PHIs will conduct awareness programmes for organisers on maintaining required health and safety standards during the conduct of such events, he added.
Boralessa warned that legal action would be taken against those who organise ‘Dansal’ without proper registration or in an unsafe manner.
He further said PHIs will inspect venues on the eve of each ‘Dansala’ to assess suitability, including waste disposal arrangements, availability of drinking water, quality of water used for cooking, and condition of equipment at the site.
In addition, those involved in food preparation and serving will also be inspected to ensure hygiene standards are maintained, he said.
“These measures are taken to ensure that food provided at ‘Dansal’ is safe and hygienic for the public. Special attention must be paid to the ingredients used, and only healthy ingredients should be utilised,” Boralessa added.
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Showers expected in the Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts after 2.00 pm.
Heat Index at Caution Level in the Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time
Sagarika derailment disrupts coastal rail line; services to resume in two days
PHIs launch Vesak ‘Dansal’ safety registration drive
‘Dates have the highest sugar content to fight Coronavirus’
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