📈 Sri Lanka Achieves Mid-Year Budget Surplus of Rs. 9.5 Bn

Sri Lanka reached a major fiscal milestone by recording a nominal budget surplus of Rs. 9.5 Bn in the first six months (H1) of 2026, marking a dramatic turnaround from the Rs. 405.6 Bn deficit reported in H1 2025. • Key Fiscal Indicators - Government Revenue: Surged 27% YoY to Rs. 2,956.0 Bn. - Total Expenditure: Rose a modest 8% YoY to Rs. 2,946.5 Bn. - Primary Surplus: Expanded significantly to Rs. 1,244.1 Bn (up from Rs. 859.0 Bn in H1 2025). - Economic Growth: GDP expanded by 5.1% in Q1 2026 (vs. 4.7% in Q1 2025). • Revenue Contributors - Tax Revenue: Increased 26% YoY. - Inland Revenue Department: Met 52% of its annual collection estimate. - Sri Lanka Customs: Reached 59% of its annual target, driven by strong collections from motor vehicles. - VAT on Imports: Grew 25% YoY to Rs. 443.7 Bn. - Non-Tax Revenue: Jumped 44% YoY. • Expenditure & Debt Costs - Recurrent Expenditure: Rose 7% YoY. - Interest Payments: Dropped 2% YoY to Rs. 1,234.6 Bn, easing debt servicing pressure. - Public Investment: Capital expenditure and net lending surged 24% YoY to Rs. 276.6 Bn.