Colombo Mayor Vraie Cally Balthazaar has clarified reports regarding alleged legal action by the Inland Revenue Department (IRD) against the Colombo Municipal Council (CMC) over tax defaults.
In a statement on social media, she said the issue relates to delayed Value Added Tax (VAT) payments for the period between 2016 and 2020.
She explained that the IRD has claimed outstanding taxes of Rs. 483 million, along with penalties amounting to Rs. 551 million.
According to her, these liabilities arose due to late payment charges and the rejection of input tax claims after required documentation was not submitted within the stipulated timeframe.
The Mayor said discussions are ongoing with the IRD to settle these dues, which she stated accumulated before the current administration assumed responsibility for the CMC.
She further added that all taxes from the third quarter of 2025 onwards have been paid on time, without delays or additional penalties.
