The Inland Revenue Department (IRD) has reported a strong start to 2026, collecting Rs. 606,002 million in tax revenue during the first quarter of the year, marking a 17.7% increase compared to the same period in 2025.

According to an official statement, the performance continues the upward momentum from 2025, when the department recorded its highest-ever annual revenue. The latest figures reflect tax collections from January 1 to March 31, 2026.

The IRD noted that growth was driven by increased contributions across major tax categories, including Income Tax (IT), Value Added Tax (VAT), and the Social Security Contribution Levy (SSCL).

The growth in revenue collection has been driven by several factors, including economic expansion, the implementation of sound tax policies, efficient tax administration, and the dedication of departmental officials, it said. 

Additionally, according to the IRD, there has been a notable improvement in voluntary tax compliance, reflecting growing public confidence in the tax system.

The department further stated that it has already achieved approximately 25% of its total revenue target for 2026 within the first three months of the year.

Commissioner General Rukdevi P. H. Fernando commended taxpayers and both public and private sector stakeholders for their continued cooperation, which has contributed to the positive outcome.

The IRD further expressed optimism about maintaining this growth trajectory in the coming months.