📈 Sri Lanka Records Rs 22.3 Bn Budget Surplus in Jan-Sep 2026

Sri Lanka achieved a major fiscal turnaround in the first nine months of 2026, posting an overall budget surplus of Rs 22.3 Bn (shifting from a deficit of Rs 441.4 Bn in Jan-Sep 2025). The turnaround was driven by a 20% YoY expansion in state revenue alongside controlled public spending. • Overall Fiscal Indicators • Total Revenue & Grants: Rs 4,601.6 Bn (+20% YoY), reaching 86.8% of the full-year target of Rs 5,300 Bn. • Tax Revenue: Rs 4,252.1 Bn (+19.3% YoY). • Total Spending: Rs 4,579.3 Bn (+7.1% YoY). • Primary Surplus: Expanded to Rs 1,843.9 Bn from Rs 1,465.1 Bn YoY. • Revenue Breakdown • Sri Lanka Customs: Collected Rs 1,981 Bn (89.8% of annual target). Revenue was heavily boosted by motor vehicle import duties, which reached Rs 381 Bn (+9.1% YoY, making up 60% of total Customs excise earnings). Import VAT rose 14% to Rs 690.3 Bn. • Inland Revenue Department (IRD): Collected Rs 2,014 Bn (83.9% of target). Income tax collections rose 20% to Rs 996.4 Bn, while domestic VAT collections expanded by 29%. • Expenditure & Economic Growth • Recurrent Expenditure: Rose 5.6% to Rs 4,036.6 Bn. Interest payments dropped 5% YoY to Rs 1,821.6 Bn (45% of recurrent spending). • Capital & Net Lending: Increased 19.2% YoY to Rs 542.8 Bn. • Economic Growth: Moderated to 4.2% in Q2 2026 compared to 5.0% in Q2 2025. _<FollowUp label="Would you like a breakdown of key fiscal indicators compared to annual targets?" query="Provide a breakdown comparing Sri Lanka's Jan-Sep 2026 actual fiscal figures against full-year targets."/>_