Sri Lanka's NPP-led Parliamentary Committee on Ways and Means has called for an expanded tax base, stricter compliance enforcement, and accelerated digitalization of tax administration to sustain fiscal stability.
The NPP-dominated Committee on Ways and Means met this week to assess the nation's tax collection mechanisms and revenue generation strategies. Chaired by Parliamentarian Wijesiri Basnayake, the session included representatives from the Ministry of Finance, Planning and Economic Development and the Inland Revenue Department to review progress on the 2026 tax plan and collection performance through June.
The committee identified several priorities for enhancing revenue administration. Officials highlighted the importance of bringing informal economic activities within the formal tax system, while the committee emphasized the need for stricter enforcement of tax compliance among existing taxpayers. According to Parliament, recent tax policy adjustments and revenue management initiatives have contributed positively to fiscal sector stability, though committee members stressed that sustained reforms remain essential.
Digitalization emerged as a central focus of the discussions. The committee emphasized expanding electronic filing, payment, and registration systems while strengthening the Revenue Administration Management Information System (RAMIS). Officials also discussed taxation of digital services and the adoption of new technologies to streamline administration. The committee called for improved data integration between institutions and greater use of electronic services across the tax system.
Key obstacles to achieving these goals include the challenge of formalizing informal economic actors, upgrading outdated technological infrastructure, and developing specialized personnel capable of managing modernized tax systems. The committee indicated that addressing these capacity and structural gaps would be critical to realizing the proposed reforms.
