• Sri Lanka's budget deficit reduced by 31%, with tax revenues up by 34%, non-tax revenues rising by 20%, and a primary surplus of 830 billion rupees, while foreign borrowings increased and domestic borrowings decreased.

Sri Lanka’s budget deficit contracted by 31% to 1,060.8 billion rupees in the 10 months to October 2024, down from 1,547 billion rupees a year ago. Tax revenues increased by 34% to 3,000 billion rupees, while non-tax revenues rose by 20% to 255.5 billion rupees. Revenue as a percentage of projected GDP gained from 8.8% to 10.4%. Recurrent spending, including interest, went up by 7% to 3,796 billion rupees, and capital spending increased by 18% to 531.7 billion rupees. The current account deficit fell to 540.3 billion rupees from 1,107.4 billion rupees. The primary balance moved into a surplus of 830 billion rupees, up from 225.4 billion rupees. Foreign borrowings rose to 274.5 billion rupees, while domestic borrowings dropped by 47% to 786.3 billion rupees, a key determinant of interest rates.

Sri Lanka budget deficit down 31-pct, taxes up 36-pct in October | Economy Next