Government Revenue Rises by 24.8% in First Half of 2025

Sri Lanka’s total non-grant government revenue has increased by 24.8% to reach Rs. 2,321.7 billion during the first half of 2025, according to the Mid-Year Fiscal Position Report issued by the Ministry of Finance, Economic Stabilization and National Policies

Sri Lanka’s total non-grant government revenue has increased by 24.8% to reach Rs. 2,321.7 billion during the first half of 2025, according to the Mid-Year Fiscal Position Report issued by the Ministry of Finance, Economic Stabilization and National Policies.

This marks a significant rise compared to the Rs. 1,860.6 billion recorded in the same period of 2024, mainly driven by higher tax revenue collection.

Tax revenue grew by 25.9%, reaching Rs. 2,151.1 billion during the first six months of 2025, up from Rs. 1,709.3 billion a year earlier.

The report attributes this increase to notable gains in several tax categories:

Motor vehicle excise duty rose by 335.6% (Rs. 99.5 billion)

Value Added Tax (VAT) increased by 27.6% (Rs. 170.4 billion)

Import duties grew by 92.7% (Rs. 45.2 billion)

Income tax rose by 9.2% (Rs. 41.3 billion)

Commodity taxes increased by 70.5% (Rs. 32.1 billion)

Social Security Contribution Levy rose by 17.7% (Rs. 22.3 billion)

Petroleum product tax increased by 15.5% (Rs. 15.0 billion)

Excise duty on liquor rose by 9.2% (Rs. 9.1 billion)

Cess tax increased by 9.3% (Rs. 3.5 billion)

The Ministry noted that this revenue growth is expected to contribute positively to strengthening the government’s fiscal stability and economic recovery.