News Today: Sri Lanka tax revenue exceeds Rs. 1,316 billion as efficient collection boosts fiscal performance

Sri Lanka has reached a major fiscal milestone, with total tax revenue collection exceeding Rs. 1,316 billion, according to Economic Development Deputy Minister Dr. Anil Jayantha Fernando. Speaking in Parliament yesterday, he highlighted that this achievement reflects stronger efficiency in revenue management rather than the imposition of new taxes.

The Deputy Minister noted that improved tax collection mechanisms, tighter enforcement of penalties, and streamlined administrative processes have played a crucial role in surpassing targets. He emphasized that the focus has been on efficiency and compliance, ensuring that revenue goals are met without adding extra burdens on the public.

“If outflows remain consistent at this level, then our annual revenue targets will be comfortably met,” Dr. Fernando said.

In 2024, the revenue target for Sri Lanka Customs was set at Rs. 1,533 billion, but collections slightly exceeded expectations, reaching Rs. 1,535 billion. For 2025, the Customs target has been increased significantly to Rs. 2,115 billion. By mid-June this year alone, the country had already collected Rs. 900 billion, reflecting robust fiscal progress.

In addition, Dr. Fernando announced the introduction of new Harmonized System (HS) codes for motor vehicle classification in Sri Lanka. This reform is intended to bring the nation’s customs processes in line with international standards, while also enabling better regulation of vehicle imports and taxation.

Economists have described the results as a positive sign for Sri Lanka’s economic recovery and fiscal stability, especially given the country’s recent financial challenges.

With effective reforms and increased efficiency in tax administration, Sri Lanka is showing signs of building a stronger fiscal foundation for 2025 and beyond.