Govt. revenue collection gathers momentum

Monday, 21 July 2025 05:02 - - {{hitsCtrl.values.hits}}

May haul a high Rs. 486 b; first five months’ net nearly Rs. 2 t, reflecting 20% increase
Deceleration path of Budget deficit continues, aided by lower growth in expenditure

Government revenue collection in May peaked at Rs. 486 billion, bringing the total in the first five months to nearly Rs. 2 trillion—half of 2024’s full-year haul.

As per latest data released by the Central Bank of Sri Lanka (CBSL), Government revenue and grants amounted to Rs. 1,942 billion (Rs. 1.94 trillion) as against Rs. 1,619 billion in the corresponding period of last year, reflecting a 20% increase. Of the figure, tax revenue amounted to Rs. 1,802 billion.

Overall revenue collection in May amounted to Rs. 486 billion—the highest for the year so far—surpassing Rs. 414 billion netted in February and higher than April (Rs. 387 billion) and March (Rs. 306 billion).

Analysts said the Government’s revenue effort appears robust year-to-date, as per latest data. Better enforcement, as well as expansion of tax coverage to include motor vehicles from March, have contributed to this momentum.

In 2024, Government revenue rose to Rs. 4 trillion from Rs. 3 trillion in 2023.

CBSL data also showed that total expenditure and net lending increased to Rs. 2,179 billion during the five months ending May 2025 compared to Rs. 1,986 billion in the corresponding period of 2024, reflecting a Rs. 193 billion or 9.7% increase.

During the five months ending May 2025, the overall Budget deficit decreased to Rs. 236.6 billion compared to Rs. 366.8 billion recorded in the same period of 2024.

During the five months ending May 2025, net domestic financing decreased to Rs. 298.6 billion compared to Rs. 394.4 billion in the corresponding period of 2024. Foreign financing recorded a net repayment of Rs. 62 billion compared to a net repayment of Rs. 27.6 billion.