Manual data sharing continues at Excise Department as digital system faces delays

• Excise Department records 0% progress in its digital integration efforts as of mid-2025
• ​Integration project, spearheaded by Information Technology Management Department, under Finance Ministry, was launched to create a unified digital infrastructure
• Primary cause for this delay is absence of a functional computerised data system within Excise Department

By Nishel Feranndo 

​A high-level initiative to integrate the IT systems of 13 key government revenue-collecting institutions has hit a critical bottleneck, with the Excise Department recording zero percent progress in its digital integration efforts as of mid-2025. 

This stagnation comes despite the department being a primary revenue earner for the state, alongside Sri Lanka Customs and the Inland Revenue Department. ​The integration project, spearheaded by the Information Technology Management Department, under the Finance Ministry, was launched to create a unified digital infrastructure. The goal is to plug the revenue leakages and streamline data sharing across the state bodies. While the other key institutions like the Import and Export Control Department and Sri Lanka Standards Institution have achieved 100 percent integration, the Excise Department remains disconnected.

​The primary cause for this delay is the absence of a functional computerised data system within the Excise Department. The officials are currently forced to rely on manual data sharing methods, a practice that the Committee on Public Accounts has flagged as inefficient. 

According to a Finance Ministry report tabled in Parliament, the procurement process for a new Revenue Administration System for the Excise Department was only initiated in early 2025.

​Although bids were called and evaluations are reportedly underway, the lack of an existing integrable system has stalled the efforts to connect with the Inland Revenue Department and Sri Lanka Customs. This technological gap poses a significant challenge to the government’s broader fiscal strategy, as real-time data integration between the revenue collectors remains impossible.

​The delay in digitisation has been compounded by the procurement hurdles. The Finance Ministry report indicates that an initial plan to obtain consultancy services from the University of Moratuwa for the system was deemed too costly. Consequently, the ministry directed the department to seek financial proposals from other state universities, including Colombo and Kelaniya.

​Despite these setbacks, the Excise Department has managed to maintain its revenue collection, recording Rs.226.8 billion in 2024, despite the production challenges. However, without immediate progress on the digital front, the department risks falling behind in a rapidly modernising national revenue framework, leaving the state reliant on manual processes that are vulnerable to inefficiencies.