The Committee on Public Accounts (COPA) has revealed that over Rs. 4 billion in assessment tax arrears remain unpaid within the Colombo Municipal Council (CMC) area.
The disclosure came during a recent COPA hearing where officials from the CMC were summoned to provide explanations.
COPA Chairman MP Kabir Hashim highlighted concerns over the persistent arrears, noting that in February, arrears of Rs. 610 million from the Fort Division alone were reported, yet by June only Rs. 53 million had been recovered. He stated that total arrears across all 47 divisions now stand at approximately Rs. 4 billion, prompting inquiries into which divisions are affected, the age of the arrears, and which amounts can realistically be collected.
Responding to the Committee, Deputy Municipal Treasurer Nandana Rajapaksha explained that recovery in the Fort Division is being carried out under the Municipal Council Ordinance, primarily through property seizure mechanisms. He reported that of 3,747 defaulting properties, 94 were non-existent, while seizure notices were sent to 2,914 properties.
From these, 840 properties had arrears exceeding Rs. 100,000, with total warrant costs of Rs. 533 million, and Rs. 108 million has been collected so far. From 2,907 properties with arrears below Rs. 100,000, Rs. 39 million has been recovered, bringing the total collections from the Fort Division to Rs. 148 million.
Following the discussion, Colombo Mayor Vraie Cally Balthazar assured COPA that prompt action would be taken to address and rectify the issues related to tax arrears within the Colombo Municipal Council.
