Cabinet approves Prime Minister Ranil Wickremesinghe’s proposal to amend Acts to increase state revenue

Ranil Wickremesinghe - Prime Minister of Sri Lanka

Sri Lanka’s Prime Minister Ranil Wickremesinghe. (BLOOMBERG / Buddhika Weerasinghe)

Sri Lankan Prime Minister Ranil Wickremesinghe has proposed to amend a number of financial acts to increase the revenue of the government.

Accordingly, Sri Lanka’s Cabinet of Ministers has granted approval to amend several Acts to increase the revenue of the government.

The following Acts will be amended:

  • Value Added Tax Act (No. 14 of 2002)
  • Inland Revenue Act (No. 24 OF 2017)
  • Telecommunications Levy Act (Act No. 21 of 2011)
  • Betting and Gaming Levy Act (Act No.40 of 1988)
  • Fiscal Management Act (Act No. 3 of 2003)

The Department of Government Information said that the government decided to introduce a relaxed tax policy in 2019 to reduce the rates of value added tax, personal income tax, corporate income tax and to shrink the tax base on value added tax and income tax. As a result, government revenue has dropped significantly.