November 25, Colombo (LNW): Sri Lanka’s Inland Revenue Department (IRD) says it has already generated more than Rs. 2 trillion in tax receipts for 2025, the highest annual return in its history and amounting to 92 per cent of this year’s target.
Officials hailed the achievement as evidence of renewed economic stability and more disciplined fiscal management. They noted that the pool of contributors continues to widen, with some 200,000 new individual taxpayers and 18,000 additional companies registering during the first part of the year.
At a media briefing held yesterday (24) at the Government Information Department, IRD Commissioner General Rukdevi Fernando said the Department had been given a considerably more ambitious target for 2025, reflecting stronger economic activity and ongoing reforms to tax administration.
Of the Rs. 2,195 billion assigned for the year, Rs. 2,080 billion has already been collected—placing the IRD in a position to meet, or possibly exceed, the full-year goal.
Commissioner Nandana Kumara underscored that broadening the tax net has been central to the Department’s success. With the latest registrations, Sri Lanka now has around 1.2 million individual taxpayers. VAT registrations have risen to 30,000, while the number of registered organisations has reached 118,000.
According to Kumara, VAT receipts have grown by 21 per cent compared with last year, and corporate income tax revenue has increased by 14 per cent. He also highlighted changes to the personal income tax threshold, which has been lifted from Rs. 1.2 million to Rs. 1.8 million for 2025.
Providing context on recent revenue patterns, Senior Commissioner Nafeel Abu Bakr explained that collections plummeted in 2020—from Rs. 1,025 billion in 2019 to just Rs. 523 billion—amid economic disruption. Revenues then began a gradual recovery, rising to Rs. 632 billion in 2021, Rs. 1,058 billion in 2022 and Rs. 1,842 billion in 2023. The upward trend continued into 2024, when receipts approached the Rs. 2 trillion mark.
Officials added that continued growth will depend on maintaining tax compliance, simplifying systems for new registrants, and ensuring that economic reforms translate into a more predictable revenue stream in the coming years.
