Sri Lankan President Anura Kumara Dissanayake assures strict accountability on tax usage

Sri Lankan President Anura Kumara Dissanayake emphasized that he gives the nation his assurance that not a single rupee of the tax money paid by the people will be misused or lost to corruption.

He further stated that if any politician or public official is found engaging in such misconduct, strict action will be taken regardless of their position, and the maximum possible punishment will be enforced. The President affirmed his commitment to ensuring justice for taxpayers by dismantling the corrupt mechanisms that have long operated against the public interest.

President Dissanayake made these remarks this morning (June 2) while addressing the inaugural ceremony of the national programme titled “Badu Shakthi” (Tax Power), aimed at enhancing tax compliance and broadening the tax base, held at the Presidential Secretariat in Colombo.

The launch of “Badu Shakthi – National Tax Week” also took place in parallel under the theme “Your Tax – Your Future.”

The President emphasized that the current government inherited a nation in a state of collapse and stressed that a well-structured tax system is essential to revive and rebuild the country. He further noted that Sri Lanka is currently under economic probation and invited all citizens to join hands in building a self-sufficient national economy. He underscored that the extended credit facility agreement with the International Monetary Fund (IMF) should be the final such programme for the country.

The “Badu Shakthi” National Tax Week commenced with the objective of transforming negative public perceptions surrounding tax compliance into a more constructive outlook while fostering a new tax culture grounded in transparency, accountability, and civic responsibility. From June 2 to June 7, 2025, a series of awareness programmes will be conducted to educate the public on the importance of tax contributions, how tax revenue supports national development, and the tangible benefits delivered to citizens through effective public financing.

As part of the initiative, the Inland Revenue Department officially launched its online platform for submitting individual income tax returns for the 2024 assessment year. Marking a significant gesture of leadership and commitment to fiscal responsibility, President Anura Kumara Dissanayake submitted his personal income tax return via the online portal, becoming the first to do so for the 2024/25 assessment year.

Additionally, the implementation of the ASYHUB system at the Sri Lanka Customs Department was carried out under this initiative. Developed with the support of the German government and the UNCTAD organization, this modernized system enables importers to complete their customs procedures before the goods arrive in the country. Through this system and integrated risk management software, risk-free shipments are directly cleared at the port and conveniently transported to the respective importers’ warehouses.

Excise Department officers were introduced to a new mobile application designed to identify legally manufactured alcoholic beverages through a secure labeling system.

Secretary to the President, Dr. Nandika Sanath Kumanayake, also addressed the event, stating that the primary aim of Tax Week is to enhance tax compliance among the business community and the general public, thereby strengthening the national tax base.

Secretary to the Ministry of Finance, Mahinda Siriwardana, noted that paying taxes is a goodwill investment made by citizens for the betterment of the country.

Convenor of the “Clean Sri Lanka” initiative, Senior Additional Secretary to the President Russell Aponsu, emphasized that tax compliance plays a crucial role in building a well-disciplined nation guided by ethical and sustainable development principles.

Joining this effort were Minister of Labour and Deputy Minister of Economic Development Anil Jayanta Fernando, Deputy Minister of Finance and Planning Harshana Suriyapperuma, Governor of the Central Bank Dr. Nandalal Weerasinghe, along with other senior government officials, provincial governors and private sector representatives.

Full Speech by Sri Lankan President Anura Kumara Dissanayake:

Today marks a historic day. This is the first time in our country’s history that we are commemorating a National Tax Week. This initiative represents a vital part of our government’s journey and reflects our unwavering commitment to ensuring that every rupee of the tax money you pay is used wisely, transparently, and for the greater good of all Sri Lankans.

We are currently in a critical phase in the history of our nation. Our country has collapsed. Our nation has gone bankrupt. The tax revenues we collect are barely sufficient to cover the salaries of public servants and the pensions of retirees. Even the remaining funds are allocated primarily to pay off interest on the massive debts incurred over the years.

So, how do we turn this situation around? How do we rebuild a nation from this state of ruin? Our first step is to establish a solid and fair tax system that strengthens our national economy. That is why we are launching this National Tax Week under the theme “Your Tax – Your Future.”

Everything else such as infrastructure, legal frameworks, and efficiency improvements, we will arrange and provide. However, if this country is to be truly revived, we must develop our national economy with our own strength. This is the only way forward.

Today, we are under strict economic surveillance. We have been placed under guardianship. The agreement with the International Monetary Fund (IMF) is a clear sign of our fragile financial state. But let this be the final IMF agreement in our country’s history. Let this be the last time we have to seek external rescue.

Our future will be built by us. We must ensure that every rupee we spend is accounted for, every policy is people-centric, and every project is aimed at building a robust and self-reliant Sri Lanka.

You all know that a culture of tax evasion has deeply rooted itself in our system. Many powerful individuals, including business tycoons, have benefited from this. Even today, numerous influential businessmen are involved in large-scale tax fraud. This is a serious issue we must address head-on.

One of the biggest revenue losses to the state occurs at our entry points, particularly the port. An underground network of organized smuggling rings operates from there. This shadow economy is run by groups who abuse the system to avoid paying the correct taxes. We are now preparing to dismantle this network completely.

Our goal is to make sure that every citizen contributes their fair share to the nation’s progress. It is not just a financial responsibility—it is a moral obligation. When you pay your taxes, you are funding education, healthcare, infrastructure, and the services that keep our country moving forward.

We are also taking significant steps to reform how taxes are collected. Today, I personally submitted my income tax return via the Inland Revenue Department’s newly launched online platform. I urge all citizens to do the same. This is not just about compliance; it is about leading by example.

To ensure greater transparency and efficiency in trade, we have implemented the ASYHUB system at Customs, developed with the assistance of the German government and the UNCTAD organization. This allows customs clearance to occur before goods even arrive in Sri Lanka, helping to prevent unnecessary delays and revenue loss.

Moreover, we have introduced a mobile application for Excise Department officers to verify the legitimacy of alcoholic beverages using a secure labeling system. These are just the first steps in a long journey toward building a more accountable and streamlined governance system.

If any public official or politician is found misusing the hard-earned tax money of our people, I assure you—they will face the harshest consequences. No one will be above the law.

Let us come together during this National Tax Week to reaffirm our commitment to building a fairer, stronger, and more transparent Sri Lanka. Let us build a nation where every rupee counts, every effort matters, and every citizen takes pride in contributing to our shared future.

Thank you.