Sri Lanka Hits 25% of Annual Tax Target in Q1 : Rs. 606Bn Collected in Just Three Months

COLOMBO (News 1st); Sri Lanka’s Inland Revenue Department (IRD) has recorded a strong start to 2026, collecting Rs. 606,002 million in tax revenue during the first quarter of the year, according to an official press release issued on April 10, 2026.

The IRD stated that the revenue collected from January 1 to March 31, 2026, represents a 17.7 percent increase compared to the same period in 2025, extending the momentum from 2025, when the department recorded the highest tax revenue in Sri Lanka’s history.

According to the department, the first‑quarter revenue includes contributions from all tax categories administered by the IRD, including Income Tax, Value Added Tax (VAT), and the Social Security Contribution Levy (SSCL), all of which showed increased collections during the period.

The IRD attributed the growth in revenue to economic expansion, the implementation of sound tax policies, efficient tax administration, and the dedicated efforts of departmental officials. In addition, the department noted a significant improvement in voluntary tax compliance, reflecting growing public confidence in the country’s tax system.

The strong first‑quarter performance has enabled the Inland Revenue Department to achieve approximately 25 percent of its annual revenue target for 2026 within the first three months of the year, the press release said. The department also expressed its appreciation to taxpayers, as well as to public and private sector organisations, for their contributions and cooperation, stating that collective efforts have played a key role in strengthening revenue mobilisation.