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Sri Lanka's mounting interest cost: The largest expenditure in Budget 2025
In budget 2025, LKR 2,950 billion (8.9% of GDP) has been allocated for interest payments on public debt. Government revenue is estimated at LKR 4,990 billion in 2025, nearly 60% of which will be spent on servicing just the interest payments on debt. Comparison of Interest Cost with Key Tax Revenues in 2025 To put this in context, tax revenues from VAT, Excise Tax, Social Security Contribution Levy, Withholding Tax, and PAYE are expected to generate LKR 2,860 billion (62% of total tax revenue ). Even all of this covers only 97% of total interest expenditure.
Featured Insight
Sri Lanka's mounting interest cost: The largest expenditure in Budget 2025
In budget 2025, LKR 2,950 billion (8.9% of GDP) has been allocated for interest payments on public debt. Government revenue is estimated at LKR 4,990 billion in 2025, nearly 60% of which will be spent on servicing just the interest payments on debt. Comparison of Interest Cost with Key Tax Revenues in 2025 To put this in context, tax revenues from VAT, Excise Tax, Social Security Contribution Levy, Withholding Tax, and PAYE are expected to generate LKR 2,860 billion (62% of total tax revenue ). Even all of this covers only 97% of total interest expenditure.
Featured Insight
Sri Lanka's mounting interest cost: The largest expenditure in Budget 2025
In budget 2025, LKR 2,950 billion (8.9% of GDP) has been allocated for interest payments on public debt. Government revenue is estimated at LKR 4,990 billion in 2025, nearly 60% of which will be spent on servicing just the interest payments on debt. Comparison of Interest Cost with Key Tax Revenues in 2025 To put this in context, tax revenues from VAT, Excise Tax, Social Security Contribution Levy, Withholding Tax, and PAYE are expected to generate LKR 2,860 billion (62% of total tax revenue ). Even all of this covers only 97% of total interest expenditure.
Featured Insight
Sri Lanka's mounting interest cost: The largest expenditure in Budget 2025
In budget 2025, LKR 2,950 billion (8.9% of GDP) has been allocated for interest payments on public debt. Government revenue is estimated at LKR 4,990 billion in 2025, nearly 60% of which will be spent on servicing just the interest payments on debt. Comparison of Interest Cost with Key Tax Revenues in 2025 To put this in context, tax revenues from VAT, Excise Tax, Social Security Contribution Levy, Withholding Tax, and PAYE are expected to generate LKR 2,860 billion (62% of total tax revenue ). Even all of this covers only 97% of total interest expenditure.
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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 announces successful completion of OCC & IMF consultation process
Sri Lanka completed consultations with the Official Creditor Committee (OCC) and the International Monetary Fund (IMF) regarding the Agreement in Principle (AIP) for International Sovereign Bonds (ISBs).
2024-10-04
Daily News
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Nearly half of Sri Lankan public dissatisfied with 2024 budget priorities – Study
Nearly half of Sri Lankans, especially TIN holders, are dissatisfied with the 2024 budget, prioritizing health, defence, and education.
2024-10-03
Daily Mirror
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SL’s Rs. 2.4 trillion fiscal deficit and the need for ‘incremental, transformative adjustments’
Dr. Rohan Pethiyagoda suggests that Sri Lanka's fiscal deficit can only be addressed through incremental reforms focused on efficiency, cost-cutting, and improved public discipline, rather than relying on taxation or sw...
2024-10-02
The Island
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CB likely to hold rates till Budget 2025
Sri Lanka's Central Bank is expected to hold policy rates until the 2025 Budget, awaiting clarity on fiscal targets agreed with the IMF, despite having room to ease rates further.
2024-09-29
The Morning
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