Sri Lanka's state revenue witnessed a remarkable surge of 25 percent in January, reaching Rs. 274 billion, fueled by the recent Value Added Tax (VAT) increase, announced State Minister of Finance, Ranjith Siyambalapitiya, in a statement today.
Addressing Parliament during the adjournment debate on the government's policy statement, Minister Siyambalapitiya highlighted the notable achievements in revenue collection. He disclosed that the Customs Department surpassed its target, generating Rs. 121 billion, an 11 percent increase from the estimated Rs. 114 billion.
Furthermore, the Excise Department reported revenues of Rs. 14 billion, exceeding the set target of Rs. 12 billion. Meanwhile, the Inland Revenue Department recorded an impressive Rs. 114 billion, surpassing the initial target of Rs. 88.9 billion.
Despite concerns about potential price hikes following the VAT adjustment, Minister Siyambalapitiya emphasized that inflation remained relatively moderate. January's inflation rate stood at 6.4 percent, with food inflation at a mere 3.3 percent. He attributed the controlled food inflation to the exemption of essential commodities from the VAT. Non-food inflation was reported at 7.9 percent.
Minister Siyambalapitiya expressed optimism about the positive implications of increased state revenue, asserting that it would benefit all citizens of the country
