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Sri Lanka’s Revenue Turnaround: What Changed Between 2021 and 2024?

Between 2021 and 2024, Sri Lanka’s government revenue and grants rose from 8.3% to 13.7% of GDP—a near doubling in just three years. This marks a striking turnaround from the historic low of 2021, when tax cuts had decimated the...

How Sri Lanka Spent, Earned, and Borrowed in 2024?

The recently released CBSL Economic review shows that in 2024, government expenditure totalled LKR 6,131 billion. Nearly half—LKR 2,690 billion, or 44 percent—went on interest payments for existing debt. Day-to-day costs consumed...

Sri Lanka's rubber product exports to the US could drop by 28%

On 2 April, US President Donald Trump imposed a 44% tariff on Sri Lankan exports to the United States. This tariff significantly affects Sri Lanka's rubber product exports, the country's second-largest export to the US, account...

Sri Lanka's No. 1 export to the US faces a potential 20% hit under tariffs

On 2 April, US President Donald Trump imposed a 44 percent tariff on Sri Lankan exports to the United States. With apparel comprising 64 percent of these exports—valued at nearly USD 1.8 billion in 2023—Sri Lanka’s apparel...

Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?

The approved budget estimates for 2025 projects Government Revenue to increase to LKR 5,012 billion. This includes non-tax revenue but excludes provincial revenue and grants. The figure marks an increase of LKR 922 billion—or 23 percen...

Sri Lanka’s higher tax rate and lower revenue collection

Sri Lanka's Corporate Income Tax (CIT) collection is notably lower than other South Asian countries, despite having a higher tax rate. In 2023, Sri Lanka’s CIT revenue collection was 2.0% of GDP, with a CIT rate of 30%. ...

Interest Costs Have Been Eating Up Revenue

In 2023, for the first time in history, the government spent 9% of its GDP on interest payments, which took up 80% of the government revenue. A high interes...

Gazetted Taxes are 4.3ppt to 15.4ppt of Income Higher than Proposals Affirmed in the Interim Budget

The infographics provide details on how the recent personal income tax changes will affect the amount of personal income tax paid by an individual.

Workers’ Remittances in 2021 Falls to 10-Year Low

Remittances reached a 10-year low in 2021 with remittances falling by USD 1.61 billion from 2020 to 2021. The declining trend in remittances cont...