The Sri Lankan government has reported a significant rise in revenue for the first eight months of 2024, with total government revenue, including grants, increasing by 40.5%. This growth amounted to Rs. 2,565.9 billion, a sharp increase from Rs. 1,826.6 billion collected during the same period in 2023. The rise was largely driven by a strong performance in tax revenue, which surged by 41.4%, reaching Rs. 2,348.5 billion.

Taxes on goods and services, which account for a substantial 60.5% of total tax revenue, saw the most dramatic rise, increasing by nearly 60% to Rs. 1,421.3 billion. The Value Added Tax (VAT) was a major contributor to this growth, climbing by an impressive 87.2% to Rs. 842.5 billion. This increase was attributed to recent adjustments in the VAT rate, a lower registration threshold, and the removal of numerous exemptions.

Meanwhile, revenue from income taxes also showed a solid 16.3% growth, reaching Rs. 624.7 billion. This was supported by measures such as enhanced tax compliance and the implementation of advanced tax policies, including the Advance Personal Income Tax (APIT) and Withholding Tax (WHT).

On the non-tax revenue front, collections increased by 31.7% to Rs. 209.3 billion, driven by higher revenue from fines, fees, charges, and interest income.

This fiscal update was part of the Pre-Election Budgetary Position Report 2024, released by the Secretary of the Ministry of Finance, Economic Development, Policy Formulation, Planning and Tourism, in accordance with Section 52 of the Public Financial Management Act, No. 44 of 2024.