Government unlikely to alter existing taxes in upcoming budget, deputy minister says
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The Government is unlikely to make major changes to existing taxes in the upcoming Budget, Trade Deputy Minister R M Jayawardena said on 2 November 2026.
He explained that agreements under the International Monetary Fund's Extended Fund Facility prevent lifting taxes without demonstrating how resulting revenue losses would be offset.
According to Jayawardena, the IMF did not object to the Government maintaining tax revenue while offering targeted assistance to affected groups.
He noted the Government will continue relief programmes, such as a Rs 6,000 schoolchildren stationery allowance introduced in 2025, despite public calls to cut taxes like the Value Added Tax.
