CA Sri Lanka has submitted a comprehensive set of proposals for Sri Lanka’s National Budget 2027, calling for a shift from repeated tax-rate increases towards stronger compliance, digitalisation and more predictable tax administration.
Key proposals include an integrated taxpayer data system linking NTIN, UBIN and electronic invoicing, greater use of data and AI to identify tax-compliance risks, and stronger Customs–IRD information sharing.
The Institute has also proposed raising the APIT threshold to Rs. 200,000 per month, introducing a tiered tax framework for SMEs based on turnover, and strengthening taxpayer rights through measures such as a Taxpayer Ombudsman, Right to Self-Correction and a Tax Administration Service Charter.
A central theme of the proposals is that Sri Lanka should broaden the tax base and improve compliance before relying on further increases in statutory tax rates. CA Sri Lanka also recommends that major tax proposals undergo formal revenue-impact assessments before being included in the Budget.
The proposals place digitalisation, efficient tax administration, taxpayer confidence and sustainable revenue mobilisation at the centre of Sri Lanka’s next phase of fiscal reform.
Source: Daily Mirror, 16 September 2026 — CA Sri Lanka submits comprehensive proposals for National Budget 2027