Sri Lanka has achieved 106% of the tax revenue target for the first quarter (Q1) as the three revenue collection agencies have collected Rs. 834 billion, State Minister of Finance Dr. Ranjith Siyambalapitiya said.

In a statement on Tuesday (23), he said that the Inland Revenue Department (IRD), Sri Lanka Customs and the Excise Department of Sri Lanka have managed to collect Rs. 834 billion in the first quarter, Rs. 47 billion more than the target of Rs. 787 billion.

The Government expects to collect a total revenue of Rs 4,106 billion as per the Budget 2024, out of which 93% is expected to be collected from tax revenue.

Dr. Siyambalapitiya said that the IRD has collected Rs. 430 billion of their target of Rs 381 billion in the first quarter which is 113% achievement of their target while the Customs have achieved 100% of their target of Rs. 353 billion and the Excise Department has achieved Rs. 51 billion which is 96% of the target. 

He said that the annual revenue of the agencies are divided into quarters based on patterns of revenue collection.

He added for example the revenue collection pattern of the Sri Lanka Customs differs from quarter to quarter from other revenue collection agencies in which imports increase during the festive season simultaneously increasing the tax revenue to the Customs.

“For IRD, their revenue collection pattern is based on the end of the financial years when companies pay taxes at the end of the financial years,” he said.

The International Monetary Fund (IMF) has provided a tax revenue target of Rs. 750 billion for the first quarter of 2024 which Sri Lanka has now achieved in their effort to pass the second review of the Extended Fund Facility (EFF).