According to the official Summary of the Budget Estimates for the financial year 2027, Sri Lanka’s total government revenue and grants are estimated at Rs. 6,180 billion.
Total revenue alone is targeted at Rs. 6,150 billion, comprising Rs. 5,687 billion in tax revenue and Rs. 463 billion in non-tax revenue, alongside Rs. 30 billion in grants. Within the tax structure, income tax is expected to generate Rs. 1,341 billion, taxes on goods and services Rs. 3,592 billion, and taxes on external trade Rs. 754 billion.
Total government expenditure, including the supplementary estimate for cyclone recovery, is projected at Rs. 7,933 billion (or Rs. 7,673 billion excluding supplementary estimates), representing 20.3% of Gross Domestic Product (GDP). Recurrent expenditure accounts for Rs. 5,944 billion, which includes Rs. 1,410 billion for public sector salaries and wages, Rs. 2,643 billion for interest payments, and Rs. 1,482 billion for subsidies and transfers. Meanwhile, public investment has been expanded to Rs. 2,000 billion (5.1% of GDP) when factoring in supplementary provisions.
The overall budget deficit with the supplementary estimate is estimated at Rs. 1,753 billion (4.5% of GDP), while maintaining a healthy primary surplus of Rs. 890 billion (2.3% of GDP). To cover the overall fiscal deficit, the government plans to secure Rs. 1,643 billion in net domestic financing and Rs. 110 billion in net foreign financing.
