Sri Lanka's Parliamentary Committee on Ways and Means has called for significant reforms to the country's tax administration, including broadening the taxpayer base, improving compliance, and accelerating digital transformation.

The Parliamentary Committee on Ways and Means has identified modernisation of Sri Lanka's tax system as a priority, emphasising the need to expand the tax base and enhance revenue collection through technological advancement. At a meeting chaired by Parliamentarian Wijesiri Basnayake, committee members convened with officials from the Ministry of Finance and the Inland Revenue Department to review the nation's tax performance and future strategy.

The discussion centred on the 2026 tax plan and revenue collection figures through June, with particular attention given to the existing taxpayer base and compliance levels. Committee members highlighted that recent policy measures have contributed to improved fiscal stability, though they cautioned that sustained progress requires further structural reforms to the tax administration system.

A primary focus involved strengthening the Revenue Administration Management Information System (RAMIS) and expanding digital infrastructure for tax services. The Committee emphasised the importance of electronic filing and payment systems, enhanced data integration between government agencies, and improved institutional coordination. Officials also addressed the taxation of digital services as part of modernisation efforts.

Among the key challenges identified were incorporating informal economic activities into the formal tax system, upgrading technological capabilities, and developing specialised expertise within the tax administration workforce. The Committee stressed that addressing these obstacles through expanded electronic services and improved data management would be essential to improving overall tax administration efficiency.