Why did Sri Lanka fall short of revised 2022 tax revenue target?

Abstract

Sri Lanka missed its tax revenue target in 2022, falling short by Rs 101 bn. Prioritizing fiscal consolidation has been given greater importance as part of the current IMF program. A series of budget deficits, excessive borrowing, and poor debt management paved way to the economic crisis which began in 2021. Excise taxes on liquor and VAT contributed the most to the overall short fall in tax revenue.