A Memorandum of Understanding (MoU) was signed today (21) between the Inland Revenue Department (IRD) and the Excise Department with the aim of preventing tax evasion and money laundering.
Accordingly, a joint mechanism will be established to exchange intelligence between the two departments and conduct parallel investigations based on the information received.
Under the Prevention of Money Laundering (Amendment) Act No. 16 of 2026, offences related to tax evasion under Section 189 of the Inland Revenue Act and offences under the Excise Ordinance are considered unlawful activities associated with money laundering, with effect from August 4, 2026.
Consequently, the primary objective of the agreement is to jointly combat such offences by utilising state resources efficiently.
This initiative is expected to expand audits related to tax evasion, minimise illicit financial flows and streamline state revenue collection.
The MoU was signed at the Ministry of Finance, under the patronage of Deputy Secretary to the Treasury A.N. Hapugala.
The agreement was signed by the Commissioner General of Inland Revenue, Rukdevi Fernando, and the Commissioner General of Excise, M.B.N.A. Premarathna.
