Sri Lanka will implement its first nationwide property tax in 2027, backed by the IMF. A digital property valuation system is in the works, with island-wide price tracking and public access to market data set for 2026. Here’s what you need to know.
Sri Lanka will introduce a nationwide property tax in 2027, according to the latest staff report released by the International Monetary Fund (IMF).
The IMF report outlines that this new property tax system is scheduled to be implemented in the first quarter of 2027 and is part of a broader fiscal reform agenda agreed upon between the government and the global lender.
To facilitate the new tax system, the report notes that the Sri Lankan government is taking steps to develop the necessary data infrastructure. This includes the creation of a comprehensive digital database dedicated to property valuation, which will serve as the foundation for calculating tax liabilities.
As part of the first phase of implementation, historical property valuation records currently maintained by the Government Valuation Department will be digitized. The digitization effort will initially cover records related to municipal councils and is expected to be completed by the end of this year.
Alongside the digitization effort, the government has also begun compiling a provincial-level register of property sales prices and rental values. This register will be used to estimate prevailing market prices for properties across the island.
The IMF staff report further states that the government plans to establish a national database by June 2026 that reflects the minimum estimated market value of properties. This will be achieved by integrating the digitized records from the Valuation Department with the provincial-level sales and rental price data.
By September 2026, this centralized property valuation database will be accessible to key state institutions such as the Inland Revenue Department, the Government Valuation Department, and the Office of the Commissioner General of Lands. The general public will also be able to access this information to inform decision-making.
The move is considered a critical part of strengthening Sri Lanka’s revenue collection framework and expanding the country’s tax base under IMF-supported economic reforms.
