Govt. Revenue Surges to Rs. 2 Trillion in Five Months, Budget Deficit Narrows
- CNL Reporter
- July 21, 2025
- News, Political
- Budget
- 0 Comments
Sri Lanka’s government revenue collection showed strong momentum in May 2025, recording Rs. 486 billion—the highest monthly figure so far this year.Total revenue and grants during the first five months reached Rs. 1.94 trillion, marking a 20% year-on-year increase compared to Rs. 1.62 trillion in the same period last year, according to the Central Bank of Sri Lanka (CBSL).
Tax revenue alone accounted for Rs. 1.8 trillion, boosted by improved enforcement and broader tax coverage, including the reintroduction of motor vehicle taxes from March. This upward trend places the government halfway toward matching 2024’s full-year collection of Rs. 4 trillion, which itself was a significant rise from Rs. 3 trillion in 2023.
On the expenditure side, total outlays including net lending rose 9.7% to Rs. 2.18 trillion. Despite the increase, the overall Budget deficit shrank to Rs. 236.6 billion from Rs. 366.8 billion in the first five months of 2024.
Net domestic financing declined to Rs. 298.6 billion, while foreign financing recorded a net repayment of Rs. 62 billion, signaling improved fiscal discipline. Analysts view the figures as a sign of strengthened revenue mobilization amid ongoing economic reforms.
