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Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?
VAT revenue is projected to rise by LKR 305 billion in 2025, driving one-third of the total increase in government revenue. It is the single largest revenue source, contributing 32 percent of the government’s total revenue. Of this, LKR 193 billion is expected from VAT on imports. Excise (Special Provisions) Duty is forecast to add LKR 215 billion, driven largely by motor vehicle duties, which alone are expected to contribute LKR 171 billion. Taxes on international trade and income tax are set to increase by LKR 174 billion and LKR 141 billion, respectively. Other taxes and levies will add LKR 51 billion, while non-tax revenue is expected to contribute LKR 37 billion.
Featured Insight
Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?
VAT revenue is projected to rise by LKR 305 billion in 2025, driving one-third of the total increase in government revenue. It is the single largest revenue source, contributing 32 percent of the government’s total revenue. Of this, LKR 193 billion is expected from VAT on imports. Excise (Special Provisions) Duty is forecast to add LKR 215 billion, driven largely by motor vehicle duties, which alone are expected to contribute LKR 171 billion. Taxes on international trade and income tax are set to increase by LKR 174 billion and LKR 141 billion, respectively. Other taxes and levies will add LKR 51 billion, while non-tax revenue is expected to contribute LKR 37 billion.
Featured Insight
Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?
VAT revenue is projected to rise by LKR 305 billion in 2025, driving one-third of the total increase in government revenue. It is the single largest revenue source, contributing 32 percent of the government’s total revenue. Of this, LKR 193 billion is expected from VAT on imports. Excise (Special Provisions) Duty is forecast to add LKR 215 billion, driven largely by motor vehicle duties, which alone are expected to contribute LKR 171 billion. Taxes on international trade and income tax are set to increase by LKR 174 billion and LKR 141 billion, respectively. Other taxes and levies will add LKR 51 billion, while non-tax revenue is expected to contribute LKR 37 billion.
Featured Insight
Government revenue set to rise by LKR 922 billion in 2025— What’s driving the increase?
VAT revenue is projected to rise by LKR 305 billion in 2025, driving one-third of the total increase in government revenue. It is the single largest revenue source, contributing 32 percent of the government’s total revenue. Of this, LKR 193 billion is expected from VAT on imports. Excise (Special Provisions) Duty is forecast to add LKR 215 billion, driven largely by motor vehicle duties, which alone are expected to contribute LKR 171 billion. Taxes on international trade and income tax are set to increase by LKR 174 billion and LKR 141 billion, respectively. Other taxes and levies will add LKR 51 billion, while non-tax revenue is expected to contribute LKR 37 billion.
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Sri Lanka moves closer to finalising debt restructuring with Japan
Sri Lanka’s Cabinet approved a debt restructuring agreement with JICA, following bipartisan negotiations and legal clearance, aiming to boost investor confidence and secure further international financial support....
2025-02-06
Daily FT
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Sri Lanka aims US$ 18.2bn in export revenue for 2025
Sri Lanka aims to achieve $18.2 billion in export revenue by 2025, with significant contributions from apparel, ICT, gems, and boat manufacturing, supported by reforms, FDIs, and a digital economy initiative.
2025-01-17
Daily Mirror
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Worker remittances cap highest in four years with US$ 6.6bn coming in
Sri Lanka's remittances in 2024 hit a record $6.58 billion, fueled by increased migration, festive season inflows, and improved exchange rate policies. ...
2025-01-15
Daily Mirror
மேலும் வாசிக்க
Government revenue surges 32% in 2024
Sri Lanka’s government revenue increased by 32.2% y-o-y to Rs. 3,650.9 billion by November 20...
2025-01-10
The Morning
மேலும் வாசிக்க
Per capita debt hits Rs. 1.3 m
Sri Lanka's public debt reached Rs. 29,150 billion in 2023, a 6.47% increase from 2022, with per capita debt rising to Rs. 1.32 million due to significant domestic and foreign borrowings. ...
2025-01-08
The Morning
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