Sri Lanka to boost tax collection and not seek IMF support in future

Sri Lanka will look to boost tax collection from the public and not seek financial support from the International Monetary Fund (IMF) in future, President Anura Kumara Disanayake said.

The President emphasized that the current government inherited a nation in a state of collapse and that a well-structured tax system is essential to revive and rebuild the country.

President Disanayake made these remarks while addressing the inaugural ceremony of the national programme titled “Tax Power’ to enhancing Tax Compliance and Broadening the Tax Base held at the Presidential Secretariat.

“When we examine some of the available data, the picture is far from encouraging. Only 43% of those registered as companies have submitted their tax returns. For the 2023–2024 period, only 23% of individuals liable for income tax have filed returns. Among partnerships, the compliance rate is 46%. Meanwhile, just 18% of those liable for PAYE tax have submitted their returns. None of these figures exceed 50%, clearly indicating widespread tax non-compliance and deliberate efforts to evade taxes,” the President said.

He further noted that Sri Lanka is currently under economic probation and invited all citizens to join hands in building a self-sufficient national economy.

The President underscored that the extended credit facility agreement with the IMF should mark the final such programme for the country.

From June 2 to June 7, a series of awareness programmes will be carried out to educate the public on the importance of tax contributions, how tax revenue supports national development and the tangible benefits delivered to citizens through effective public financing.

As part of the initiative, the Inland Revenue Department officially launched its online platform for the submission of individual income tax returns for the 2024 assessment year.

President Anura Kumara Disanayake submitted his personal income tax return via the online portal, becoming the first to do so for the 2024/25 assessment year.