Sri Lanka's government tax revenue increased to Rs. 2.71 trillion during the first six months of 2026, marking a 25.9% year-on-year growth compared to the corresponding period in 2025, according to the latest Public Finance Review (PFR) issued by the Department of Fiscal Policy under the Ministry of Finance.
The report revealed that total government revenue and grants rose by 27% to Rs. 2.956 trillion during the January–June period, reflecting continued improvements in revenue collection.
Sri Lanka also recorded a budget surplus of Rs. 9.5 billion during the first half of 2026, a significant turnaround from the Rs. 405.6 billion budget deficit reported during the same period last year.
According to the Public Finance Review, the surplus was driven by stronger government revenue performance coupled with effective expenditure management.
The government has set a total tax revenue target of Rs. 4.91 trillion for 2026. By the end of June, 55.2% of this annual target had already been achieved, indicating steady progress toward meeting the year's fiscal objectives.
The report highlights the government's ongoing efforts to strengthen public finances through enhanced revenue mobilization and prudent fiscal management, contributing to improved budgetary performance during the first half of the year.
