📈 Treasury Seeks Public Proposals to Lift Revenue to 20% of GDP

The Finance, Planning and Economic Development Ministry has called for public proposals on revenue enhancement strategies to strengthen tax collection and broaden the tax base. • Fiscal Background & Targets: The initiative follows a strong revenue recovery in 2025, where government revenue reached nearly 15.4% of GDP due to tax reforms, improved compliance, and the resumption of vehicle imports. The medium- to long-term objective is to increase revenue performance towards 20% of GDP. • Economic Context: While revenue collection has outperformed expectations under the IMF-supported reform program, the IMF has warned that external shocks from the Middle East conflict have slowed Sri Lanka’s projected growth to 3% in 2026. • Key Focus Areas: The Revenue Management Committee (RMC) is seeking evidence-based proposals that avoid relying solely on tax rate increases. Key areas include the formalisation of the informal economy, broadening the tax base, digitalisation of revenue-collecting agencies, and curbing leakages. • Submission Details: Proposals are invited from think tanks, universities, private sector entities, and individuals. Submissions must include implementation mechanisms, fiscal impacts, and risk analyses, and must be submitted in PDF format to the RMC by 16 June 2026.