According to the latest report issued by the Ministry of Finance, Sri Lanka recorded a significant increase in total government revenue excluding grants during the first half of 2025, compared to the same period in 2024.
The report revealed that government revenue excluding grants rose to Rs. 2,321.7 billion in the first half of 2025, marking a 24.8% increase from Rs. 1,860.6 billion recorded in the same period last year.
Tax revenue made the biggest contribution to this growth, increasing by 25.9% to Rs. 2,151.1 billion in the first half of 2025, compared to Rs. 1,709.3 billion in the corresponding period of 2024.
The report attributed the increase in tax revenue to several key factors, including higher excise duties on motor vehicles, increased Value Added Tax (VAT) collections, higher customs import duties, and improvements in income, merchandise, and social security taxes, as well as revenue from petroleum, liquor, and CESS levies.
Excise duty on motor vehicles recorded the highest growth, increasing by 335.6% or Rs. 99.5 billion, while VAT revenue rose by 27.6% or Rs. 170.4 billion.
Additionally, customs import duty increased by 92.7% (Rs. 45.2 billion), income tax by 9.2% (Rs. 41.3 billion), special commodity tax by 70.5% (Rs. 32.1 billion), and social security contribution tax by 17.7% (Rs. 22.3 billion).
Revenue from excise duty on petroleum rose by 15.5% (Rs. 15.0 billion), excise duty on liquor increased by 9.2% (Rs. 9.1 billion), and CESS levy revenue grew by 9.3% (Rs. 3.5 billion), according to the report.
