Sri Lanka to roll out nationwide property tax by 2027 as part of IMF-backed reform agenda

Date:

July 08, Colombo (LNW): The Sri Lankan government has pledged to implement a nationwide property tax beginning in the first half of 2027, as part of a sweeping economic reform package agreed upon with the International Monetary Fund (IMF).

Work is already underway to establish the necessary data infrastructure to support the rollout of the new tax, which will apply to real estate holdings across the island. Officials expect the measure to generate approximately Rs. 56 billion in its inaugural year, with that figure projected to more than double to Rs. 122 billion by 2028.

In a formal communication to IMF Managing Director Kristalina Georgieva, President Anura Kumara Dissanayake—who also holds the finance portfolio—reaffirmed his administration’s full commitment to the reform agenda supported by the Extended Fund Facility (EFF).

Amongst the government’s stated priorities are a shift towards revenue-led fiscal consolidation, rationalisation of public spending, and reforms to ensure cost-reflective pricing in the energy sector. These measures are to be implemented alongside strengthened social protection systems to shield vulnerable segments of the population from potential adverse effects.

The government has also reaffirmed its intent to carry out a carefully calibrated debt restructuring plan to safeguard long-term fiscal sustainability. Other focal points of the reform framework include ensuring exchange rate flexibility, rebuilding foreign reserves, maintaining financial sector stability, and advancing anti-corruption and governance reforms.

Additionally, the administration is pursuing broader structural reforms aimed at unlocking the country’s long-term economic potential, with an emphasis on increasing efficiency, transparency, and resilience across key sectors.

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