The Committee on Ways and Means has underscored the necessity of leveraging digital technology, expanding the tax base, and enhancing institutional capabilities to improve the efficiency of Sri Lanka’s taxation framework. This was highlighted during a review of the nation’s fiscal performance, tax revenue collection, and ongoing reforms in tax administration.
The recent meeting, chaired by Hon. Member of Parliament Wijesiri Basnayake, convened in Parliament and included representatives from the Ministry of Finance, Planning and Economic Development, as well as the Inland Revenue Department. The discussions centered on the current fiscal landscape of Sri Lanka and various reforms associated with tax administration.
During the session, the Committee assessed the tax strategy for 2026, the progress of tax revenue collection as of June 30, 2026, revenue projections, performance by tax category, the present tax base, levels of tax compliance, the implementation of new technologies aimed at simplifying the tax system, advancements in the Revenue Administration Management Information System (RAMIS), taxation of digital services, challenges faced in tax administration, and future strategies to enhance the tax system.
The Committee acknowledged that recent reforms in tax policy and revenue management have positively influenced the stability of the country’s fiscal landscape. They reiterated the need to modernize tax administration, widen the taxpayer base, and boost tax compliance to maintain and build upon this progress.
Furthermore, discussions were held regarding steps to increase the efficiency of the tax system through the expansion of electronic services, improved data sharing among various institutions, and further enhancements of digital systems.
The Committee also addressed significant challenges within tax administration, such as incorporating informal economic activities into the tax framework, upgrading technological systems, resolving data integration issues, and developing specialized human resources necessary for effective tax administration.
Additionally, the Committee explored future initiatives to further enhance the RAMIS system, broaden electronic registration, filing, and payment options, integrate data systems, and improve the overall efficiency of tax administration processes.
The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Prof. Ruwan Ranasinghe, Eranga Weeraratne, and Nishantha Jayawera, as well as Members of Parliament Attorney-at-Law Arjuna Sujeewa Senasinghe, K. Sujith Sanjaya Perera, Dr. Nandana Millagala, Sunil Biyanwila, and Chathura Galappaththi. Officials from the Ministry of Finance, Planning and Economic Development and the Inland Revenue Department were also present.
