Sri Lanka Inland Revenue reports Rs. 1,255 Billion in tax collections

The Inland Revenue Department in Sri Lanka says it has collected Rs. 1,255 billion in tax revenue so far this year.

The amount represents 52% of the department’s annual revenue target for 2026, which stands at Rs. 2,401 billion.

Officials said the revenue collected so far is also 117% of the amount collected during the same period in 2025.

Meanwhile, the Government has decided not to proceed with the proposed reduction of the annual turnover threshold for Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL), which was scheduled to come into effect today (July 1).

Accordingly, the current threshold of Rs. 60 million will remain unchanged, and the earlier proposal to reduce it to Rs. 36 million will not be implemented at this stage.

Deputy Minister of Economic Development Nishantha Jayaweera informed Parliament on June 23, 2026, that the VAT threshold will remain at Rs. 60 million.

He also said small and medium-sized enterprises may voluntarily register for VAT if they wish, even if their turnover is below the threshold.

Separately, Deputy Minister of Mass Media Dr. Kaushalya Ariyarathna told Parliament on the same day that the proposal had been discussed at the Committee on Public Finance (CoPF) before the decision was made.

She said the Government had concluded that this was not the appropriate time to implement the reduction, as the Inland Revenue Department needs to further strengthen its administrative systems and tax collection mechanisms.

She added that the Cabinet of Ministers had decided to defer the measure and that the required procedural approvals, including approval from the Attorney General, had been obtained.