The Inland Revenue Department (IRD) collected Rs. 606,002 million in tax revenue during the first quarter of 2026, a 17.7% increase compared to the same period last year, the department announced on Thursday.
The performance continues the upward momentum from 2025, when the IRD recorded its highest-ever annual revenue. The figures reflect collections from January 1 to March 31, 2026, with growth driven by increased contributions across major tax categories including Income Tax, Value Added Tax (VAT), and the Social Security Contribution Levy (SSCL).
Commissioner General Rukdevi P. H. Fernando said the department has already achieved approximately 25% of its total revenue target for 2026 within the first three months, commending taxpayers and stakeholders for their continued cooperation.
The IRD attributed the growth to economic expansion, sound tax policies, efficient administration, and improved voluntary tax compliance reflecting growing public confidence in the system.
The strong Q1 revenue figures are significant for Sri Lanka’s IMF programme, which requires the country to meet specific revenue mobilisation targets. Sri Lanka Customs also exceeded its March 2026 target by 25%, suggesting broad-based improvement in government revenue collection.
The revenue milestone comes as the ADB forecasts that Sri Lanka’s growth will moderate to 4.0% in 2026 from 5.0% last year, with inflation projected to rise sharply to 5.2% — factors that could influence future tax collection trends.
