Sri Lanka to Roll Out Property Tax In 2027

COLOMBO (News 1st); Sri Lanka is preparing to introduce a nationwide property tax system by the first half of 2027, according to the latest staff report released by the International Monetary Fund (IMF).

The initiative, which forms part of the government’s broader revenue mobilization strategy, is expected to enhance tax equity and improve public sector financing.

The IMF report outlines a detailed roadmap for the development of the necessary data infrastructure to support property taxation. Central to this effort is the creation of a comprehensive and digitized database of property valuations, which will serve as the backbone for assessing property values and calculating tax liabilities.

The first phase of the project involves digitizing historical valuation records held by the Government Valuation Department, beginning with municipal councils. Authorities aim to complete this digitization process by the end of 2025. This foundational data will be critical in establishing a reliable baseline for property assessments.

In parallel, the government has launched a provisional digital Sales Price and Rents Register (SPRR), designed to capture current market value estimates across the country. With data-sharing constraints now resolved, the final version of the SPRR is scheduled to be operational by September 2025.

By June 2026, the government plans to integrate the digitized historical records with the SPRR to create a unified national database of properties with estimated market values. This database will not only underpin the property tax system but also support capital gains taxation and other fiscal instruments.

Importantly, the database will be made accessible to key government institutions, including the Inland Revenue Department (IRD), the Valuation Department, the Land Registry, and the general public by September 2026.