The International Monetary Fund (IMF) has reviewed Sri Lanka’s ongoing public revenue reform programme during a special discussion with the Revenue Administration Reform and Modernisation Bureau (RARMB) at the Presidential Secretariat.

The meeting, held under the chairmanship of Secretary to the President Dr. Nandika Sanath Kumanayake, focused on reforms implemented over the past year under Sri Lanka’s Medium-Term Revenue Strategy (MTRS), including tax administration, customs procedures, excise management and the broader public revenue framework, the President’s Media Division said in a statement.

The IMF delegation also held separate discussions with senior officials from the Inland Revenue Department, the Ministry of Finance, Sri Lanka Customs and the Department of Excise, the PMD noted.

During the discussions, IMF representatives highlighted the importance of digital transformation initiatives, accelerated data integration, human resource development, leadership programmes and sustainable measures to expand the tax base. The RARMB was recognised as a reform hub operating under a strong governance framework.

The IMF agreed to continue providing technical assistance and advisory support for reforms involving Sri Lanka Customs, the Inland Revenue Department and the Department of Excise, according to the PMD.

Established in early 2025 under the leadership of President Anura Kumara Dissanayake with Cabinet approval, the RARMB aims to modernise revenue collection, improve tax administration efficiency, introduce legal and institutional reforms, and strengthen coordination among key revenue agencies.

As part of the Inland Revenue Department’s restructuring programme, branch operations have been reorganised into Medium Corporate, Metro and Regional Offices, resulting in an increase in tax compliance levels from 40–45 percent to 70–75 percent, according to officials.

Meanwhile, a draft Bill to amend the Customs Ordinance has been prepared and submitted to the Legal Draftsman’s Department, marking a major legislative reform effort after several decades. Additional measures, including tariff simplification, paperless procedures and improved exporter facilitation, are also planned.

The Department of Excise is also undergoing modernisation through the introduction of a new Excise Management System. In addition, the RARMB has established an integrated coordination mechanism between Sri Lanka Customs and the Inland Revenue Department to support data sharing, joint audits, risk management and improved tax compliance monitoring.

The IMF delegation was led by Andrew Killer of the IMF Fiscal Affairs Department and included Revenue Administration Project Manager Cindy Negus, IMF Resident Tax Adviser to Sri Lanka’s Inland Revenue Department Greg, Canadian Senior Adviser Bob Hamilton, along with senior RARMB officials, the PMD added.