Digitalising Tax System in Sri Lanka: Evidence from Inland Revenue Department

Abstract

The adoption of state-of-the-art information technology and digitalised tools has gained prominence in recent years. This now applies equally to private sector and public sector institutions, including central governments. This paper explores the implementation of a novel digitalised tool, namely Revenue Administration Management Information System (RAMIS), in Sri Lanka. Rogers’ diffusion of innovation theory serves as a sensitizing theoretical lens through which we approach this innovation tool. The empirical evidence is gathered through multiple sources, encapsulating semi-structured interviews and document search. The results of the study are twofold. On the one hand, the study shows that a great deal of interest has been expressed in the digitalised tax system at the very top. The Asian Development Bank as well as administrators having international experience have taken the decisive lead in promoting the RAMIS. On the other hand, the implementation of the RAMIS has not yet moved beyond the pilot project and achieved the desired ends. On the contrary, a myriad of implementation barriers and challenges have been unveiled, amongst which special mention should be made of poor infrastructure; resistance to change, especially amongst elderly employees; as well as the current legal framework that hinders the full-fledged functioning of the system.