Development of the Department

Establishment of the Department

The Provincial Council administration units were established under the 13th Amendment to the Constitution of the Democratic Socialist Republic of Sri Lanka, and Provincial Revenue Departments were set up to handle revenue-generating activities.

The Central Provincial Council is the administrative unit formed by amalgamating the Kandy, Matale and Nuwara Eliya districts. The Department of Provincial Revenue of the Central Province was formed under the Finance Statute No. 17 of 1990, passed by the Central Provincial Council within the provisions of the Constitution.

Under the Finance Statute, the amending Statute No. 03 of 1996 and the Pawn Brokers’ Statute No. 04 of 2014, there are 13 sources of revenue administered directly or indirectly by the Provincial Commissioner of Revenue:

Stamp Duty
Business Turnover Tax (BTT)
Excise Revenue
Lotteries Tax
Motor Vehicle Fees
Court Fines
Tax on Prize Competitions
Tax on Betting
Fees on land alienated under the Land Development Ordinance and the State Lands Ordinance
Tax on Mineral Rights
Fees under the Fauna and Flora Protection Ordinance
Charges levied under the Weights and Measures Ordinance
Fees under the Pawn Brokers' Statute

Of these, the following sources are at present directly administered by the Department:

Stamp Duty
Tax on Betting
Mineral Tax
Pawn Broker Fees

Physical and human resources

Established in 1991, the Department commenced with an initial staff of seven officers attached from the Department of Inland Revenue. Today it has a total cadre of sixty-three (63) officers across all grades.

At the time of establishment the Department had no permanent premises and was relocated three times between 1991 and 1999. In 1999 it acquired its own four-storey building within the Kandy Municipal Council area.

Technology development

Until 2000 the Department maintained its records manually. In 2000 it moved to a computerised, single-user database, which by 2008 had been developed into a secure multi-user system. With a networked system, authorised officers can access the database from anywhere in the Department according to their level of authority. Today the Department operates in a fully computerised environment, greatly enhancing efficiency, productivity and effectiveness.

Revenue development

Turnover Tax collection grew from Rs. 104 million in 1991 to Rs. 576 million in 2006. Against a 2008 target of Rs. 1,170 million the Department collected Rs. 1,328 million, rising to Rs. 1,683 million in 2010. Stamp Duty collection grew from Rs. 30 million in 1991 to Rs. 3,598 million in 2025.

Service development

Moving away from the traditional government office approach, the Department has transformed its services from a department-centred approach to a citizen-centred service, in line with the national vision of “A Prosperous Country – A Beautiful Life”.

Special achievements

The Department received recognition for its outstanding performance in the evaluation programme conducted by the Committee on Public Accounts of the Parliament of Sri Lanka for the financial years 2016, 2017 and 2019.