Sri Lanka has seen a substantial increase in government revenue, with a 41% rise year-on-year (y-o-y) in the first six months of 2024, totaling Rs. 1,860 billion. This achievement marks the collection of 52% of the estimated revenue for the year, according to Finance State Minister Ranjith Siyambalapitiya.
Speaking in Parliament on August 7, Siyambalapitiya highlighted that the government’s revenue for the first half of 2024 represents a significant boost compared to the same period in 2023. He noted that the portion of indirect taxes has been reduced to 70% of the overall tax collection, with a target to lower this figure to 60%.
Central Bank data indicates that Rs. 244 billion was collected in revenue in June alone. The Minister also reported a 30.4% increase in non-tax revenue, primarily from interest income and fines.
The record revenue collection has resulted in a primary account surplus of Rs. 543.2 billion for the first six months, a notable achievement in Sri Lanka’s fiscal history. Additionally, the 52 state-owned enterprises (SOEs) showed improved profitability, recording a collective profit of Rs. 185.9 billion in the first half of 2024, up from Rs. 144 billion in the same period of 2023.
Furthermore, the government has successfully reduced outstanding dues for senior citizens’ deposits in the banking sector from Rs. 250 billion to Rs. 88 billion by the end of the first half of 2024.