The Inland Revenue Department has collected about 61% of its Rs. 2,402 billion revenue target for 2026, the Department’s Commissioner of Tax Policy and Law, Nandana Kumar, said on Ada Derana’s “BIG FOCUS” programme.
Collections are running around 16% ahead of the same point last year, he said, and the Department is confident of meeting the full-year target.
“For the year 2026, we were given a target of Rs. 2,402 billion. By now, we have collected more than 60% of this revenue. That is 61%,” Kumar said. “If we compare the revenue collection so far with the previous year, we have collected around 16% more revenue compared to last year.”
Widening the base
Kumar said measures to expand the number of taxpayers have brought the total to roughly 1.2 million open individual income tax files, covering both those who registered voluntarily and those brought in through mandatory registration. More than 130,000 companies have also registered.
“Expanding the tax base for tax payment means that if a taxpayer’s income exceeds the relevant income threshold, they should voluntarily register,” he said.
The figures follow the assessment earlier this month by Presidential Secretary Dr. Nandika Kumanayake that stronger IRD performance could eventually create room for tax relief, but only once compliance widens.
15% rate confirmed on service exports
Separately, the Department confirmed on the same programme that income from the export of services is taxed at 15% from the 2025/2026 assessment year.
Senior Deputy Commissioner Hiran Meneripitiya said the rate applies to individuals providing services to overseas clients through digital platforms and other channels, and that such income will not be taxed at the standard 18%, 24%, 30% and 36% bands — leaving it below the rates on ordinary income.
Those earning through digital platforms must declare it via self-assessment returns and settle the liability themselves, he said. The clarification comes as a growing number of Sri Lankans earn from overseas clients online.
