📈 Sri Lanka Fiscal Deficit Reaches Rs. 119 Bn in July, But 7-Month Position Up YoY

Overall Figures • Budget Balance: Deficit expanded to Rs. 119.23 Bn in July 2026, wiping out H1 surplus to push Jan–Jul cumulative deficit to Rs. 109.72 Bn. • YoY Improvement: 7-month deficit narrowed by 80.3% YoY from Rs. 556.11 Bn in Jan–Jul 2025. • Primary Surplus: Monitoring target under IMF reform program grew 38.5% YoY to Rs. 1,348.58 Bn. Revenue Breakdown • Total Revenue & Grants: Up 25.1% YoY to Rs. 3,421.26 Bn. • Tax Revenue: Increased 23.8% YoY to Rs. 3,136.32 Bn. • Non-Tax Revenue: Rose 44% YoY to Rs. 281.55 Bn. • Grants: Dropped 38.4% YoY to Rs. 3.39 Bn. Expenditure & Public Debt • Total Expenditure: Up 7.3% YoY to Rs. 3,530.98 Bn. • Recurrent Spend: Rose 4.9% YoY to Rs. 3,149.13 Bn; Capital Spend accelerated 31.6% YoY to Rs. 381.85 Bn. • Central Govt Debt: Stood at Rs. 30,795.04 Bn (May 2026). Domestic debt dipped to Rs. 18,609.43 Bn, while foreign debt rose to Rs. 12,185.61 Bn.