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Uncollected taxes, penalties and interest now amount to Rs 943 bn

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IRD won’t takeover RAMIS for want of qualified personnel

By Shamindra Ferdinando

The Inland Revenue Department (IRD) has told the parliamentary watchdog Committee on Public Accounts (COPA) that it couldn’t fully take over the Revenue Administration Management Information System aka RAMIS for want of sufficient number of qualified personnel.

Top management of the IRD said so when COPA Chairman Lasantha Alagiyawanna (SLPP), during proceedings, asked them whether they could run RAMIS on its own. This is Alagiyawanna’s second stint as COPA Chairman.

According to a press release dated Nov 18 issued by Janakantha Silva, Parliament Director Legislative Services / Director Communication (Acting), the IRD management had declined to operate RAMIS on its own due to the absence of required personnel. The IRD comes under the Finance Ministry.

The shocking claim of being understaffed has been made, just two days after President Ranil Wickremesinghe, in his capacity as the Finance Minister projected a total tax revenue at 4.1 trillion rupees for next year, sharply higher than 2.85 trillion rupees in the current year, with the biggest jump coming from the goods and services tax receipts.

Lawmaker Alagiyawanna, who is also the State transport Minister has called for a comprehensive report on the tax collected under various clarifications, as well as uncollected taxes, penalties and interests, amounting to Rs 943 bn.

The Island yesterday (19) sought an explanation from State Minister Alagiyawanna regarding the failure on the part of successive governments, including the Wickremesinghe-Rajapaksa administration, to streamline revenue collection, particularly against the suspension of the USD 2.9 bn IMF loan package, due to revenue shortfall.

Lawmaker Alagiyawanna acknowledged that the government was struggling with the issue. In spite of spending as much as Rs 17 bn on RAMIS, the system is not fully functional, the COPA Chief said, adding that collection of unpaid taxes remained a daunting task.

According to COPA records, in terms of both RAMIS and Legacy systems, unpaid taxes, penalties and interests as at Dec 31, 2022 amounted to Rs 904 bn. The SLFPer said they hadn’t been able to overcome problems and various issues relating to massive arrears in tax payments though many discussions took place over the years. As at June 30, 2022, the total amount of arrears in taxes, penalties, and interest amounted to Rs. 773 bn.

Responding to another query, the State Minister said that the government was yet to make a permanent appointment for the post of Commissioner General, IRD. The post fell vacant over three months ago. D.U.A. Jayawardhana currently serves as Commissioner General, in an acting capacity.

Auditor General W.P.C. Wickremeratne has complained to COPA that the IRD continuously refused to divulge contractual information as per the terms and conditions of the agreement with the Singaporean company, NCS, a subsidiary of Singapore’s Singtel. Wickremeratne has questioned the rationale in the IRD’s refusal, claiming that the agreement is technically between the two governments.

State Minister Alagiyawanne said that the arrears in uncollected taxes, penalties and interests continued to grow rapidly over the years as successive governments struggled to cope up with the revenue collection system, comprising IRD, Customs and Excise.

Former Minister and ex-Chairman COPE Dew Gunasekera told The Island that the government should immediately take tangible measures to streamline revenue collection. The former Communist Party Chief and former IRD officer emphasized that the government’s goal should be to gradually bring down the total amount of arrears in taxes, penalties and interest. A cohesive action plan is required to address this issue, the ex-lawmaker said, calling for an all-party consensus on this matter as the economy was in dire straits.



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Landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara Eliya

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The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale and Nuwara Eliya for the next 24 hours commencing at 1200hrs today [08]

Accordingly
LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Ududumbara in the Kandy District, Wilgamuwa in the Matale District, and  Nildandahinna and Walapane in the Nuwara Eliya District.

LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Meegahakiwula, Welimada,  Kandaketiya, Lunugala, Badulla, Passara,  Uva Paranagama and Hali_Ela in the Badulla District, Ambanganga Korale in the Matale District, and Mathurata and  Hanguranketha in the Nuwara Eliya District.

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Warning for deep depression over South-east Bay of Bengal Sea area

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Deep depression Track. [Source: RSMC]

Warning for deep depression over South-east Bay of Bengal Sea area.
Issued by the Natural Hazards Early Warning Centre, Department of Meteorology at 10.30 a.m. on 08 January 2026 for the period until 10.30 a.m. 09 January 2026

The depression in the Bay of Bengal to the southeast of Sri Lanka has intensified into a deep depression and is centered near latitude 5.4°N and longitude 85.3°E, about 420 km southeast of Pottuvil at 05.30 a.m. today (08th). The above system is currently (10:00 a.m.) located about 300 km southeast of Pottuvil.

It is very likely to move west-northwestwards across the southwest Bay of Bengal and cross the Sri Lanka coast between Hambantota and Kalmunai between 5.30 p.m. to 11.30 p.m. on Friday  [9th January 2026].

Hence, showery, and windy condition over the island, particularly in the Northern, NorthCentral, Eastern, Uva and Central provinces is expected to enhance from today (08th).

For the Land area:

DAMAGE EXPECTED:
• Damage to huts, temporary shelters and light structures
• Destroy the roof tops/ sheets etc.
• Damage to power and communication lines.
• Breaking of tree branches and uprooting of large avenue trees.
• Damage to paddy crops, banana, papaya trees and orchards.
• Damage to harbor yachts
• Flash flood
• Sea water inundation in low lying areas in the near coast.

Action suggested for the Land area:
• Coastal hutment dwellers are advised to move to safer places. Other people in the affected areas to remain indoors.
• People living in hilly areas (particularly landslide prone areas) and low lying areas in river basins are requested to be vigilant.
• Drivers and people using roads in the hilly areas are requested to be vigilant.
• Beware of fallen trees and power lines.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• General public is requested to be vigilant regarding impending extreme weather situation.
• For emergency assistance contact the local disaster management authorities.
• Requested to be attentive about future advisories issued by the Department of Meteorology in this regard.

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Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas

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WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology

The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.

Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the  Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.

Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

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