Perceptions of Professionals on Income Tax Reforms and Their Impact on Brain Drain in Sri Lanka

This study investigates the impact of the Inland Revenue (Amendment) Acts No. 45 of 2022 and No. 04 of 2023 on perceptions of professionals and the impact on their migration in Sri Lanka. The research adopted a qualitative approach involving semi-structured interviews with 27 professionals from different sectors, such as medicine, academia, IT, energy and banking. Thematic content analysis is employed and is guided by Brain Drain Theory and Fiscal Sociology Theory. The study finds that professionals perceive that the unfairly high tax burdens disrupt most of their financial planning and living standards, driving them to measures of austerity that badly harm their mental and physical well-being. The problem with this kind of upper-middle class and salaried professionals is worsened because of unfair targeting of taxes against them, perceived corruption in using taxes and a public lack of trust in such utilisation.