Sri Lanka’s Inland Revenue and Excise Departments sign MoU to combat tax evasion and money laundering

Sri Lanka’s Inland Revenue Department and Excise Department have signed an agreement to share information and coordinate parallel investigations to detect tax evasion and money laundering.

Under the Memorandum of Understanding (MoU), the two agencies will establish a joint intelligence-sharing mechanism. The agreement follows recent legal changes that brought key tax and excise offences under anti-money laundering laws.

The Prevention of Money Laundering (Amendment) Act No. 16 of 2026, which took effect on August 4, 2026, classifies tax evasion under Section 189 of the Inland Revenue Act and offences under the Excise Ordinance as unlawful activities linked to money laundering.

Through closer cooperation, the departments aim to expand tax audits, curb illegal financial flows, and improve state revenue collection. This initiative will help meet government revenue targets by ensuring a more effective use of national resources.

The MoU was signed on October 21, 2026, at the Ministry of Finance by Commissioner General of Inland Revenue Rukdevi Fernando and Commissioner General of Excise M.B.N.A. Premaratne, under the patronage of Deputy Secretary to the Treasury A.N. Hapugala.