Sri Lanka business group flags Rs.40bn government revenue leak

The Ceylon Merchant Traders Association (CMTA) has raised concerns over significant revenue leakage within government systems, highlighting a potential loss of approximately Rs.40 billion in state income. The business organisation has pressed authorities to take decisive action to address the financial gap, underscoring the impact on public finances during a period of economic strain.

The association's call for intervention reflects growing concerns among the private sector regarding government revenue collection mechanisms and potential inefficiencies in the fiscal system. The identified leakage represents a considerable sum that could otherwise be directed toward essential public services and economic stabilization efforts.

The CMTA's appeal comes as Sri Lanka navigates broader economic challenges, with revenue generation and fiscal management remaining critical priorities for the government. The organisation has emphasised the need for stronger oversight and implementation of measures to prevent further revenue loss.

Officials have not yet issued a formal response to the CMTA's concerns. The business group's intervention highlights ongoing dialogue between the private sector and government on economic governance and revenue management practices.