The Parliamentary Committee on Ways and Means has stressed the need to expand Sri Lanka’s tax base, improve tax compliance and increase the use of digital technology to strengthen the country’s tax system.

The Committee discussed the matter at a meeting in Parliament chaired by Parliamentarian Wijesiri Basnayake, with officials from the Ministry of Finance, Planning and Economic Development and the Inland Revenue Department.

The Committee reviewed the 2026 tax plan, tax revenue collection up to June 30, revenue estimates, tax revenue by category, the existing taxpayer base and the level of tax compliance, according to a statement issued by the Department of Communication of Parliament.

Progress on the Revenue Administration Management Information System (RAMIS), taxation of digital services and the introduction of new technologies to simplify tax administration were also discussed.

Officials noted that recent tax policy and revenue management measures have helped improve stability in the country’s fiscal sector. The Committee stressed that further reforms are needed to sustain this progress.

The Committee also called for greater use of electronic services, improved data sharing between institutions and further development of digital systems.

Key challenges discussed included bringing informal economic activities into the tax net, upgrading technological systems, integrating data and developing specialised human resources for tax administration.

The Committee on Ways and Means further discussed plans to strengthen the RAMIS system and expand electronic registration, filing and payment facilities to improve the overall efficiency of tax administration.