Committee on Ways and Means calls for tax administration reforms and digitalization

The Committee on Ways and Means has underscored the urgent need to modernize Sri Lanka’s tax administration through digital technology, expansion of the tax base, and strengthening of institutional capacity, as part of efforts to improve efficiency and fiscal stability.

Meeting recently in Parliament under the chairmanship of MP Wijesiri Basnayake, the Committee reviewed the country’s fiscal performance, progress in tax revenue collection, and ongoing reforms. Officials from the Ministry of Finance, Planning and Economic Development and the Inland Revenue Department participated in the discussions.

The Committee examined the 2026 tax plan, revenue collection up to 30 June 2026, estimates by tax category, compliance levels, and the introduction of new technologies to simplify the system. Progress of the Revenue Administration Management Information System (RAMIS), taxation of digital services, and challenges in administration were also reviewed.

Members noted that recent policy reforms and revenue management measures have contributed to greater stability in the fiscal sector. They emphasized the importance of modernizing tax administration, expanding the taxpayer base, and improving compliance to sustain this progress.

Discussions also focused on enhancing efficiency through electronic services, improved data sharing among institutions, and further development of digital systems. Key challenges highlighted included integrating informal economic activities into the tax net, upgrading technological systems, addressing data integration issues, and developing specialized human resources.

The Committee further discussed the way forward for strengthening RAMIS, expanding electronic registration, filing and payment facilities, and improving 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 MPs Arjuna Sujeewa Senasinghe, K. Sujith Sanjaya Perera, Dr. Nandana Millagala, Sunil Biyanwila, and Chathura Galappaththi, alongside senior officials from the Ministry of Finance and the Inland Revenue Department. (Newswire)