Diffusion of Revenue Administration Management Information System (Ramis) in the Inland Revenue Department of Sri Lanka

Abstract

The Inland Revenue Department of Sri Lanka along with the Ministry of Finance commenced the Project for implementing the Revenue Administration Management Information System (RAMIS) to provide a better service to the nation and taxpayers. The objective of this study is to analyze the evolution of Phase I of RAMIS in order to identify the stages of progression, key players of the project and their influence on implementation and also to recognize the challenges and weaknesses of the project. Thus, the study is significant as it contributes to the extant knowledge by adding new knowledge to the limited research conducted relating RAMIS both globally and locally. Further, it acts as a post-assessment study which will help to analyze the effectiveness of the processes and initiatives. The data was mainly sourced through interviews with the top level employees of the Inland Revenue Department who were directly involved in or exposed to the initiation and Phase I of the RAMIS project and important documents (internal and external organizational documents, namely, internal reports, annual performance reports and operational and strategic plans) relating to the project. Interviews were duly transcribed and analyzed to arrive at the conclusion. The findings of the study revealed that the process of RAMIS implementation is in line with the stages of diffusion of innovation, with key stakeholders such as the Ministry of Finance, ADB, IRD and IDA Singapore. The study also identified weaknesses such as inadequate training provided to staff, time overrun and issues with RAMIS external interface. It was concluded that though the diffusion of RAMIS is in line with the stages suggested by Rogers (1983), it has not been executed effectively owing to political interference and lack of buy-in from the staff. Finally, as a direction for future research, an in- depth study is suggested of both Phases I and II of the RAMIS project while taking into account the tax payer perspective as well.