Sri Lanka launches major tax compliance drive in Colombo

Sri Lanka’s Inland Revenue Department has initiated an extensive field observation programme across Colombo and its suburbs to formally expand the national tax base and ensure greater compliance.

The initiative, announced by the Finance Ministry on Wednesday, 28 January 2026, marks a proactive shift in the government’s revenue collection strategy. Officials from the Inland Revenue Department (IRD) are conducting door-to-door inspections of business establishments to verify their legal registration status and confirm the accuracy of existing tax files. Beyond enforcement, the programme is designed to identify individuals and businesses eligible for taxation who remain outside the formal system, while providing immediate, on-site technical advice to resolve outstanding tax-related issues.

Participating in the launch of the programme, Nishantha Jayaweera, the Deputy Minister of Economic Development, emphasised that the robust management of direct tax revenue is a fundamental pillar for the nation's economic stabilisation. He reassured the business community that these field visits are intended to foster a transparent and equitable tax environment rather than cause operational disruption. The drive comes as the government aims to hit ambitious revenue targets under the current International Monetary Fund (IMF) recovery framework, following the 2022 financial crisis.