Ranaweera Associates Managing Partner Athula Ranaweera said that improving tax compliance in Sri Lanka must begin with strengthening the tax administration itself, speaking at the CA Sri Lanka 5th Annual Economic and Tax Symposium, where leading private sector tax professionals raised concerns over the Inland Revenue Department’s administrative practices.
Ranaweera noted that many taxpayers genuinely want to comply voluntarily but are frequently frustrated by inconsistent technical guidance from the Department. He pointed out that gaps in technical knowledge and the practical application of the law among tax administrators mean that two officials can hold two different views on the same issue, leaving taxpayers uncertain about which position to follow.
He urged the Government to invest a portion of its increased tax revenue in strengthening the technical capability of IRD officials, while expanding taxpayer education through both the Department and professional bodies.
His remarks came during a wider discussion in which senior practitioners — including John Keells Group’s Nisreen Rehmanjee and Gajma & Co. Senior Partner N.R. Gajendran — criticised the IRD’s growing role in policymaking, opaque legal interpretations, delayed refunds and inconsistent administrative practices, warning that predictable administration would do more to improve compliance and strengthen Sri Lanka’s investment climate than further legislation.
Read the full coverage: FT.lk Top Story