Govt. posts Rs. 116 b Budget surplus in 1Q as revenue surges 40%

Monday, 8 June 2026 05:40 - - {{hitsCtrl.values.hits}}

Primary surplus expands 78.5% YoY to Rs. 709.6 b
Tax revenue rises 36.4%, while non-tax revenue jumps 91.3%

The Government’s fiscal position strengthened significantly during the first quarter of 2026, with the Government recording a sharp increase in revenue and maintaining the Budget in surplus, according to latest data released by the Central Bank of Sri Lanka (CBSL).

The Government recorded a primary surplus of Rs. 709.6 billion during January-March 2026, up 78.5% from Rs. 397.47 billion in the corresponding period of 2025, reflecting continued improvement in revenue collection and fiscal consolidation efforts.

At the same time, the overall Budget balance recorded a surplus of Rs. 116.35 billion, compared to a deficit of Rs. 234.46 billion a year earlier, marking a turnaround of Rs. 350.81 billion year-on-year (YoY).

Total revenue and grants increased by 40.5% YoY to Rs. 1.5 trillion during the first three months of the year from Rs. 1.07 trillion in the corresponding period of 2025.

Revenue increased to Rs. 1.5 trillion from Rs. 1.07 trillion a year earlier, supported by strong growth in both tax and non-tax revenue.

Tax revenue rose 36.4% YoY to Rs. 1.34 trillion from Rs. 985.88 billion, while non-tax revenue increased 91.2% to Rs. 153.88 billion from Rs. 80.46 billion. Grants remained marginal at Rs. 0.47 billion.

Meanwhile, total expenditure and lending minus repayments increased by 6.2% YoY to Rs. 1.38 trillion from Rs. 1.3 trillion.

Recurrent expenditure rose 4.7% to Rs. 1.28 trillion from Rs. 1.22 trillion, while capital expenditure and lending minus repayments increased 29.2% to Rs. 106 billion from Rs. 82.06 billion.

The stronger revenue performance enabled the Government to maintain a surplus position during the quarter, with revenue and grants exceeding total expenditure and lending minus repayments by Rs. 116.35 billion.