Sri Lanka Targets 2025 Property Tax Reform

COLOMBO (News 1st); The Ministry of Finance has announced a comprehensive review of Sri Lanka's property tax collection system.

Minister of State for Finance, Ranjith Siambalapitiya, confirmed the review, emphasizing that the matter is receiving close attention.

While details of the review remain under wraps, the Minister hinted at a possible implementation of the new system in 2025. 

Recognizing its potential as a critical revenue source, the International Monetary Fund (IMF) has urged Sri Lanka to prioritize the implementation of a property tax system by 2025.

In an interview, Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF, emphasized the tax's role in achieving sustainable national development: "A well-designed property tax could be a significant contributor to Sri Lanka's fiscal consolidation efforts, offering a progressive and equitable means of raising revenue from those with greater wealth."

However, Breuer acknowledged the complexities involved: "Implementing such a system requires meticulous planning and preparation. A comprehensive property registry and robust valuation mechanisms are essential to ensure fairness and effectiveness."

The IMF has already extended technical assistance to Sri Lanka, and Breuer expressed optimism about the potential impact: "We strongly encourage the authorities to pursue this initiative vigorously. A successful property tax system, coupled with ongoing reforms, can pave the way for Sri Lanka's economic recovery and inclusive growth."