Sri Lanka, Nov. 5 -- Sri Lanka applies a lower fixed excise duty per litre to imported alcoholic beverages than to alcohol produced locally, a disparity the International Monetary Fund (IMF) has recommended addressing through the policy and administrative agenda of the Medium-Term Revenue Strategy (MTRS).

In its Revenue Administration Diagnostic, the IMF described the difference in treatment as unusual, noting that imported and domestically manufactured excisable goods are generally subject to equivalent rates to safeguard revenue, maintain tax neutrality and limit opportunities for arbitrage.

The report recommended examining a more neutral basis for setting excise rates, supported by stronger border controls, verification of security s...