Sri Lanka’s tax compliance rate has almost doubled from 40-45% to 70-75%, as part of the Inland Revenue Department’s restructuring programme, which necessitated branch operations to be reorganised into Medium Corporate, Metro and Regional Offices, an official statement made by the President’s Media Division said.

The mentioned findings were revealed during a special discussion between the Revenue Administration Reform and Modernisation Bureau (RARMB), which operates under the direct supervision of the Presidential Secretariat with the objective of modernising Sri Lanka's public revenue system, and the International Monetary Fund (IMF),  at the Presidential Secretariat recently.

Meanwhile, a draft Bill to amend the Customs Ordinance has been prepared and submitted to the Legal Draftsman’s Department. Additional measures, including tariff simplification, paperless procedures and improved exporter facilitation, are also planned, according to the matters discussed during the meeting.

The discussion further reviewed the reform process implemented over the past year under Sri Lanka's Medium-Term Revenue Strategy (MTRS), covering the country's tax system, customs procedures, excise administration and the overall public revenue framework.

In this regard, the IMF delegation also held separate discussions with senior officials of the Inland Revenue Department, the Ministry of Finance, Sri Lanka Customs and the Department of Excise.

The IMF representatives paid particular attention to plans for digital transformation projects, accelerating data integration, human resource and leadership development programmes, and sustainable strategies to broaden the tax base. During the discussions, the RARMB was recognised as a ‘reform hub with a strong governance framework’.

The IMF also agreed to continue providing technical assistance and advisory support for the reform programme being implemented in relation to Sri Lanka Customs, the Inland Revenue Department and the Department of Excise.

The IMF delegation was led by Andrew Killer of the IMF Fiscal Affairs Department and included Revenue Administration Project Manager Cindy Negus, IMF Resident Tax Advisor to Sri Lanka Inland Revenue Department Greg Topping, Canadian Senior Adviser Bob Hamilton, along with senior RARMB officials, the PMD added.