Sri Lanka’s tax system faces critical challenges: 1) Massive revenue leaks ($413M/year per Tax Justice Network) from corporate tax evasion and offshore wealth; 2) Unfair competition as local businesses pay taxes while non-resident MNCs (Google, Meta, Uber) avoid taxation by lacking physical presence; and 3) Policy gaps like Sri Lanka’s refusal to join the OECD’s Automatic Exchange of Information (AEoI), which helped India recover $20B in taxes.





