SriLanka, Nov. 1 -- A total of nearly Rs. 2.1 trillion in outstanding tax arrears had been recorded by the Inland Revenue Department (IRD) as of the end of 2025, according to a new report issued by the International Monetary Fund (IMF).

The findings have been revealed in a recent IMF Technical Assistance Report, which states that nearly Rs. 1.6 trillion of the total defaults relates to tax assessments that are subject to appeals or other disputes.

The report further reveals that total outstanding tax arrears stood at nearly Rs. 1.1 trillion in 2024, of which approximately Rs. 947 billion was subject to such disputes.

Accordingly, the report highlights that appeals appear to be the largest barrier to collection.

It also points out that...