A high-level discussion between the Revenue Administration Reform and Modernization Bureau (RARMB) and the International Monetary Fund (IMF) was recently held at the Presidential Secretariat under the patronage of Secretary to the President Dr. Nandika Sanath Kumanayake to review progress in modernising Sri Lanka’s public revenue system.
The RARMB, which operates under the direct supervision of the Presidential Secretariat, was established to spearhead reforms aimed at strengthening the country’s revenue administration.
The meeting reviewed the progress achieved over the past year under Sri Lanka’s Medium-Term Revenue Strategy (MTRS), focusing on reforms in the tax system, customs administration, excise management, and the broader public revenue framework.
During their visit, the IMF delegation also held separate discussions with senior officials from the Inland Revenue Department, Ministry of Finance, Sri Lanka Customs, and the Department of Excise.
Particular attention was given to the implementation of digital transformation initiatives, accelerated data integration, human resource and leadership development programmes, and sustainable measures to broaden the national tax base.
The IMF delegation commended the RARMB for serving as a strongly governed reform coordination centre and agreed to continue providing technical expertise and advisory support for the ongoing reform programmes covering the Inland Revenue Department, Sri Lanka Customs, and the Department of Excise.
The RARMB was established in early 2025 under the leadership of President Anura Kumara Dissanayake, with Cabinet approval. Its mandate includes modernising revenue collection, improving tax administration, implementing legal and institutional reforms, and strengthening coordination among the Inland Revenue Department, Customs, and the Excise Department.
As part of the Inland Revenue reforms, the department has been restructured into Medium Corporate, Metro, and Regional Offices, resulting in tax compliance improving from 40–45 percent to 70–75 percent.
Authorities also revealed that a new Customs Bill, the first major revision of Sri Lanka’s customs legislation in decades, has been prepared and submitted to the Legal Draftsman’s Department. Planned reforms include simplifying tariff structures, introducing paperless customs processes, and improving services for exporters.
Meanwhile, the Department of Excise is continuing to modernise its operations through the introduction of a new Excise Management System.
The RARMB has also established an integrated coordination mechanism between Sri Lanka Customs and the Inland Revenue Department, enabling data sharing, joint risk management, coordinated audits, and enhanced monitoring of tax compliance among importers.
The IMF delegation was led by Andrew Killer of the IMF Fiscal Affairs Department and included Cindy Negus, IMF Resident Tax Advisor Greg, senior Canadian advisor Bob Hamilton, together with senior officials of the Revenue Administration Reform and Modernization Bureau.
