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Tax collection measures contribute to increase in tax revenue in 1H 2024

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The Inland revenue Department in Colombo

However, share of revenue from direct taxes said to have reduced to 26.1 percent

by Sanath Nanayakkare

Apart from a slew of taxes that were imposed on individuals, corporations and withholding taxes on various monetary transactions with effect from January 2024, the strengthened tax collection measures also have contributed to the increase in state revenue, according to the mid-year fiscal report issued by the Ministry of Finance.

The report indicates that mandating financial institutions to submit details of individual taxpayers’ transactions to the Department of Inland Revenue has been a key contributor in this regard.

Apart from that, making electronic tax filing mandatory for individual income taxpayers, streamlining the refund process, expediting refunds of amounts paid in excess and, discouraging cash transactions by not allowing such transactions in one day or in a single transaction or in a single event in aggregate to Rs. 500,000 or more to be deducted as expenses for tax purposes also have helped accrue more revenue to the state coffers.

Further, several policy decisions made to strengthen tax administration such as the issuance of a regulation for the regular exchange of information by individuals including government agencies with the Commissioner General of Inland Revenue have brought its dividends on the revenue share of the government.

In nominal terms, the revenue collection from VAT increased significantly by 85.4 percent to Rs. 616.9 billion in the first half of 2024 compared to Rs. 332.7 billion in the same period of 2023, realizing 44.1 percent of the annual estimate for 2024. Revenue from VAT on domestic activities increased by 49.8 percent to Rs. 353.4 billion while revenue from VAT on imports increased significantly by 172.2 percent to Rs. 263.6 billion in the first half of 2024.

With the growth in revenue from VAT and from taxes on external trade, the share of revenue from direct taxes out of the total tax revenue has reduced to 26.1 percent in the first half of 2024 compared to 32.1 percent recorded in the same period of 2023. In the first half of 2024, the realization of tax revenue collection was 44.7 percent of the estimate of Rs. 3,820.0 billion for 2024

“In nominal terms, the revenue collection from VAT increased significantly by 85.4 percent to Rs. 616.9 billion in the first half of 2024 compared to Rs. 332.7 billion in the same period of 2023, realizing 44.1 percent of the annual estimate for 2024. Revenue from VAT on domestic activities increased by 49.8 percent to Rs. 353.4 billion while revenue from VAT on imports increased significantly by 172.2 percent to Rs. 263.6 billion in the first half of 2024,” the report stated.

From a macroeconomic perspective, the strengthened tax administration has had clear advantages. However, the reports indicates that the share of revenue from direct taxes out of the total tax revenue has reduced to 26.1 percent in the first half of 2024 without giving details as to how this has happened.



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Dr RAD Jeewantha named most innovative dentist of the year

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Dr Jeewantha receiving the award

Dr. R. A. D. Jeewantha was honoured as the Most Innovative Dentist of the Year at the Business World International Awards, 2025. Organised by the Business World International Organisation, the award ceremony was held recently at the Mount Lavinia Hotel. A graduate of the Faculty of Dental Sciences, University of Peradeniya, Dr. Jeewantha has built a reputation as one of Sri Lanka’s most respected and forward-thinking dental surgeons. After gaining vital experience in Government hospitals, including the Teaching Hospital in Karapitiya, he also served at a leading private hospital before launching his own practice—Doctor J Premium Dental Care in Delkanda, Nugegoda.

His dental clinic is known for offering advanced, patient-focused treatments in restorative dentistry, cosmetic procedures, and implantology, using state-of-the-art technology. Dr. Jeewantha is especially skilled in dental implants, having completed the American Residency Course in Dental Implantology at Roseman University, accredited by the American Academy of Implant Dentistry. Dr. Jeewantha holds fellowships from the International College of Continuing Dental Education (FICCDE) and the Pierre Fauchard Academy (USA). His advanced skills include modern root canal treatments using Mineral Trioxide Aggregate (MTA) for both surgical and non-surgical procedures.

He has completed international trainings in digital dentistry, full-arch implantology techniques like All-on-Four and Zygomatic Systems, and smile design using digital 3D scans. He has participated in global dental events such as the Asia-Pacific Dental Congress and completed training at institutions including the University of Manchester and North Western State Medical University in Russia. His courses have covered everything from intraoral scanning to managing tooth wear. He has previously received many local and international awards. Dr. Jeewantha also serves the community as a Justice of the Peace for All Island.

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IIHS Foundation in Biological Studies offers fast-track route to global health careers

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The Foundation in Biological Studies at IIHS provides a unique alternative for students looking to fast-track their health careers after their Ordinary Level (O/L) exams. This programme offers a direct route to global health careers, bypassing traditional A/Ls. With over 1,000 students already advancing to universities in Australia, the UK, and Finland, IIHS has positioned the course as a reliable launchpad for careers in fields like medicine, nursing, biomedical sciences, and digital health. “This programme is a game-changer, offering a transformative journey into global healthcare education,” said IIHS CEO Dr. Kithsiri Edirisinghe.

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Seylan Bank Reports Strong Growth in Q1 2025 Financials

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Seylan Bank has recorded a Profit before Tax (PBT) of LKR 4,199 million in Q1 2025, marking a 13.36% growth compared to LKR 3,704 million in Q1 2024. Profit after Tax (PAT) rose by 20.29%, reaching LKR 2,761 million, up from LKR 2,295 million in the corresponding period of 2024.

Despite a decrease in net interest income by 8.37% due to market interest rate reductions, the bank’s net fee-based income grew by 13.83%, driven by fees from loans, cards, remittances, and other services. Total operating income for the quarter was LKR 11,258 million, a 3.83% decrease from the previous year, while operating expenses rose by 4.62%, largely due to increased personnel and other operating costs.

Impairment charges were significantly reduced by 83.17%, totaling LKR 262 million, reflecting the bank’s solid credit quality and proactive provisions. The bank’s impaired loan ratio improved to 1.98% from 2.10% in Q1 2024, with a provision cover ratio of 80.74%.

Seylan Bank’s total assets grew to LKR 785 billion, with loans and advances reaching LKR 469 billion and deposits totaling LKR 647 billion. The bank’s capital adequacy ratios remained strong, with the Common Equity Tier 1 Capital Ratio at 13.67% and Total Capital Ratio at 17.64%.

In addition to its financial performance, Seylan Bank continued its commitment to education, opening 16 more “Seylan Pahasara Libraries,” bringing the total to 281 libraries across the island.Fitch Ratings upgraded Seylan Bank’s National Long-Term Rating to ‘A+(lka)’ with a Stable Outlook in January 2025, further underscoring the bank’s financial stability and growth trajectory.

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