Tax revenue over next few quarters to pick up-CT CLSA – Sri Lanka

CT CLSA – Sri Lanka Monthly Report for April 2023 states that they believe that the tax revenues collected by the Inland Revenue Department of Sri Lanka over the next few quarters are likely to pick up.

The Inland Revenue Department announced that it had collected tax revenues of Rs.317 billion in 1Q-2023. This figure was Rs.147 billion in 1Q-2022. “We believe that this trend will continue as the economy begins to recover in the latter half of 2023 year end.”

The indicative target for Central Government tax revenue for 2023E is Rs.2, 940 billion. “However, achieving the indicative targets as detailed in the recent IMF report on the Sri Lanka EFF may be challenging.”

The Colombo Consumer Price Index (CCPI – Base year 2021) decreased by 2.7 points to 192.3 index points, whilst point-to-point inflation was recorded at 35.3% in April 2023 (vs. 50.3% in March 2023).