16th January 2025: The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), the country’s premier national accounting body, submitted a set of comprehensive proposals for consideration in the upcoming government budget for the year 2025. These proposals aim to bolster Sri Lanka’s economic revival and growth trajectory while promoting governance, transparency, and accountability to restore public confidence in fiscal policy.
The proposals were submitted to Dr. Harshana Suriyapperuma, Deputy Minister of Finance and Planning on Thursday, 16th January 2025, by Mr. Heshana Kuruppu, President of CA Sri Lanka, in the presence of Mr. Tishan Subasinghe, Vice President, Ms. Sarah Afker, Chairperson of the Faculty of Taxation, Mr. Saman Srilal, Alternate Chair, Members of the Faculty, and Ms. Lakmali Priyangika, Chief Executive Officer of CA Sri Lanka.
In alignment with international standards and to instill confidence among stakeholders, CA Sri Lanka emphasises the importance of efficient utilisation of public resources for sustained economic progress. The proposals highlight the need for robust policy planning and effective implementation to achieve long-term economic growth and fiscal discipline. Key recommendations include the introduction of a Tax Ombudsman, minimising cash transactions through accelerated digitisation, expanding bilateral and multilateral agreements, and revising administrative provisions. Additionally, the proposals stress the necessity of state sector reforms and advocate for the effective implementation of the Public Finance Management Act.
Reflecting the collective voice of its members and stakeholders, the recommendations submitted by CA Sri Lanka are the culmination of a series of consultations, as well as from the Annual Tax Oration, a two-day Economic and Tax Symposium, a public perception survey on Sri Lanka’s tax system, as well as from seminars and webinars, all dedicated to generating constructive suggestions on tax, policy planning and implementation.
Under Policy Planning and Implementation, CA Sri Lanka advocates for inclusive policy formulation by engaging industry clusters, trade associations, and relevant authorities to develop impactful policies. To ensure timely and effective implementation, the Institute proposes forming a dedicated task force comprising representatives from both the public and private sectors. A key recommendation is also the establishment of a Tax Ombudsman, an independent authority designed to address tax-related grievances fairly and impartially, thereby fostering taxpayer confidence. Furthermore, CA Sri Lanka calls for the reinstatement of a professional tax cluster to conduct regular reviews and provide feedback on tax policies, ensuring they remain adaptable and aligned with national economic goals.
In the area of Digitisation and Transparency, the Institute recommends minimising cash transactions by promoting digital payments and setting clear transaction limits. This shift will improve transparency and broaden the tax base. To support this transition, CA Sri Lanka emphasises the need for robust infrastructure and public training. Additionally, a Digital Integration Proposal is presented, advocating for a centralised national database that links citizen data across key institutions. This initiative would facilitate pre-filled tax returns, streamlining processes and enhancing accuracy.
Recognising the significance of international trade, CA Sri Lanka proposes Expanding Bilateral and Multilateral Ties by strengthening diplomatic negotiations to secure broader trade agreements. Such agreements will provide local entrepreneurs and products with a competitive edge. Expanding Sri Lanka’s tax treaty network is also recommended to attract foreign investment, alongside adopting the best international practices, such as Automatic Exchange of Information agreements, to elevate the country’s global standing.
For Administrative Reforms in Taxation, CA Sri Lanka suggests empowering the Commissioner-General of Inland Revenue to waive or reduce interest under justifiable circumstances. The Institute also recommends equalising interest rates on tax di