Sri Lanka, July 19 -- The Inland Revenue Department said it will initiate criminal prosecution against individuals and entities who deliberately fail to meet their specified income tax obligations.

The IRD said the Inland Revenue (Amendment) Act, No. 11 of 2026, which amends the Inland Revenue Act, No. 24 of 2017, came into force on 3rd June 2026 and that it introduces prosecution actions

for certain compliance failures.

The Department said a taxpayer who fails to comply with statutory requirements may be subject to prosecution proceedings in circumstances including failure to register with the Commissioner General of Inland Revenue, failure to file income tax returns and failure to file annual statements (including Withholding Tax ...