President drives IRD digitalization to meet 2030 digital economy goals

Strengthening the Inland Revenue Department for a Digital Future

President Anura Kumara Dissanayake has highlighted the importance of enhancing and digitalising the Inland Revenue Department (IRD) as a key step toward achieving Sri Lanka’s strategic goals for a digital economy by 2030. His remarks came during an important meeting held at the Presidential Secretariat, where representatives from the IRD, the Ministry of Digital Economy, and the Ministry of Finance participated.

The discussions focused on several critical aspects of the IRD’s operations, particularly the ongoing management and local procurement process of the existing Revenue Administration Management Information System (RAMIS). This system plays a vital role in the department’s ability to manage tax-related data and processes efficiently. During the meeting, participants identified current challenges within the RAMIS framework and explored potential technological solutions to address them.

President Dissanayake stressed that digitalisation is not just beneficial but essential for effective tax administration. He pointed out that modernising the IRD would help streamline processes, reduce inefficiencies, and ensure greater transparency in tax collection. This aligns with broader efforts to transform Sri Lanka into a more digitally advanced nation.

Key Objectives of the Digitalisation Initiative

Several key objectives were outlined during the meeting. These include:

• Minimising tax irregularities: By improving the accuracy and reliability of tax data, the government aims to reduce instances of non-compliance and fraud.
• Simplifying the tax system: A more streamlined approach will make it easier for taxpayers to understand and meet their obligations.
• Enhancing tax transparency: Digital tools will enable better tracking and reporting of tax activities, fostering trust between the government and citizens.
• Introducing Point of Sale (POS) machines: These devices will facilitate smoother and more secure transactions, especially for small businesses and retail outlets.

These initiatives are expected to significantly broaden the country’s tax base and make the process of paying taxes more convenient for the public. By leveraging technology, the government hopes to create a more inclusive and efficient tax system that benefits both individuals and businesses.

Role of the Digital Economy Ministry

The establishment of the Digital Economy Ministry has been praised as a crucial step in supporting the IRD’s digital transformation. Officials from the IRD noted that this new ministry will provide the necessary resources, expertise, and policy direction to accelerate the implementation of digital initiatives. The ministry’s focus on innovation and technology is seen as a strong foundation for the IRD’s future development.

Broader Implications for Economic Growth

The digitalisation of the Inland Revenue Department is part of a larger national strategy aimed at modernising various sectors of the economy. As Sri Lanka moves toward a more digital and tech-driven future, the IRD’s transformation is expected to play a significant role in driving economic growth. Improved tax administration can lead to increased government revenue, which can then be reinvested into infrastructure, education, and other public services.

Moreover, a well-digitalised tax system can attract foreign investment and support the growth of local businesses. By creating a more predictable and transparent environment, the government can encourage entrepreneurship and innovation, further strengthening the country’s economic resilience.

In conclusion, the President’s emphasis on digitalisation underscores the importance of adapting to modern technological advancements. With continued efforts and collaboration across different ministries, Sri Lanka is well-positioned to achieve its vision of a thriving digital economy.