• Inland Revenue, Customs, and Excise tax arrears below Rs. 90 b.
• 2023 sets record with Rs. 3 t in revenue.
• Country’s recovery drives tax revenue targets beyond expectations.
• Efficient tax collection maintained despite employee shortages.

Commissioner General of the Excise Department M. J. Gunasiri dismissed claims of significant arrears in three major government revenue sources—namely the Inland Revenue Department, Sri Lanka Customs, and the Excise Department—as myths.

Speaking at the press briefing at the Presidential Media Centre (PMC) on Monday (26), he clarified that the outstanding tax amount for these three institutions totals only Rs.90 billion.

He also noted that it is typical for any country to have 3-5% of its total tax revenue in outstanding taxes.

Gunasiri further highlighted that these three institutions achieved record revenue in 2023, surpassing Rs. 3 trillion.

Additionally, after 25 years, they succeeded in creating a surplus in the primary account.

Moreover, he explained that “the three institutions under the Ministry of Finance—the Inland Revenue Department, Sri Lanka Customs, and the Excise Department—work within a legal framework to collect state revenue. Despite some groups spreading misinformation about large tax arrears, the actual total unpaid taxes for these institutions are under Rs. 90 billion.”

“Most of these arrears are from government entities, and legal actions are underway to recover the funds, meaning these amounts should be considered deferred taxes. Once the judicial process is completed, recovery is possible. Additionally, a tax deficit of 3-5% of total tax revenue is typical for any country. Nevertheless, overall state tax revenue has seen a significant increase over the past two years,” he added.