Topics
Explore
Featured Insight
State of the Budget Report Estimates 14% Shortfall in Revenue Against Budget Projection
Sri Lanka is projected to fall short of its budget target on revenue to GDP (gross domestic product) for the 33rd consecutive year in 2024, according to the recently released ‘State of the Budget Report 2024’. The State of the Budget Report is compiled annually by Verité Research and published on PublicFinance.lk, Sri Lanka’s premier platform for economic insights. The report provides a robust analysis and objective assessment of the fiscal, financial and economic estimates in Sri Lanka’s annual budget. It mirrors the scope of a budget report that is expected to be published by the parliamentary Committee on Public Finance (COPF), with the same aim: of helping improve informed engagement with the budget, both in public and in parliament. The State of the Budget Report by Verité Research has consistently been more accurate on budget outcomes than projections of the government, which are approved by parliament. It thereby forms an important additional input for professional economic analysis and decision making in Sri Lanka. Overestimated tax revenue Sri Lanka has not met a revenue to GDP target set in a budget since 1991. Most recently, the parliamentary committee on Ways and Means reported that tax revenue fell 13% short of the budgeted target in 2023. For 2024, the government is expecting revenue of LKR 4,164 billion, a 42% increase from its revised projections for 2023. However, the State of the Budget Report projects a 14% shortfall, with revenue of only LKR 3,570 billion. In the report, 61% of the projected shortfall is attributed to overestimation of revenue from Value Added Tax (VAT). The remaining 39% is attributed to the overestimation of revenue from corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty. Interest-to-revenue ratio Sri Lanka has the highest interest-cost-to-revenue ratio in the world and reducing this ratio is critical for macroeconomic stability and sustainability. The budget for 2024 expects to lower this ratio to 64%. However, the revenue projections in the State of the Budget Report, together with the government calculation of interest costs, suggests this ratio will exceed 70%, as it has in the last few years. Sri Lanka will, thereby, fall short of the economic recovery plan agreed with the IMF, on what economists consider a critical indicator of debt sustainability.
Featured Insight
State of the Budget Report Estimates 14% Shortfall in Revenue Against Budget Projection
Sri Lanka is projected to fall short of its budget target on revenue to GDP (gross domestic product) for the 33rd consecutive year in 2024, according to the recently released ‘State of the Budget Report 2024’. The State of the Budget Report is compiled annually by Verité Research and published on PublicFinance.lk, Sri Lanka’s premier platform for economic insights. The report provides a robust analysis and objective assessment of the fiscal, financial and economic estimates in Sri Lanka’s annual budget. It mirrors the scope of a budget report that is expected to be published by the parliamentary Committee on Public Finance (COPF), with the same aim: of helping improve informed engagement with the budget, both in public and in parliament. The State of the Budget Report by Verité Research has consistently been more accurate on budget outcomes than projections of the government, which are approved by parliament. It thereby forms an important additional input for professional economic analysis and decision making in Sri Lanka. Overestimated tax revenue Sri Lanka has not met a revenue to GDP target set in a budget since 1991. Most recently, the parliamentary committee on Ways and Means reported that tax revenue fell 13% short of the budgeted target in 2023. For 2024, the government is expecting revenue of LKR 4,164 billion, a 42% increase from its revised projections for 2023. However, the State of the Budget Report projects a 14% shortfall, with revenue of only LKR 3,570 billion. In the report, 61% of the projected shortfall is attributed to overestimation of revenue from Value Added Tax (VAT). The remaining 39% is attributed to the overestimation of revenue from corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty. Interest-to-revenue ratio Sri Lanka has the highest interest-cost-to-revenue ratio in the world and reducing this ratio is critical for macroeconomic stability and sustainability. The budget for 2024 expects to lower this ratio to 64%. However, the revenue projections in the State of the Budget Report, together with the government calculation of interest costs, suggests this ratio will exceed 70%, as it has in the last few years. Sri Lanka will, thereby, fall short of the economic recovery plan agreed with the IMF, on what economists consider a critical indicator of debt sustainability.
Featured Insight
State of the Budget Report Estimates 14% Shortfall in Revenue Against Budget Projection
Sri Lanka is projected to fall short of its budget target on revenue to GDP (gross domestic product) for the 33rd consecutive year in 2024, according to the recently released ‘State of the Budget Report 2024’. The State of the Budget Report is compiled annually by Verité Research and published on PublicFinance.lk, Sri Lanka’s premier platform for economic insights. The report provides a robust analysis and objective assessment of the fiscal, financial and economic estimates in Sri Lanka’s annual budget. It mirrors the scope of a budget report that is expected to be published by the parliamentary Committee on Public Finance (COPF), with the same aim: of helping improve informed engagement with the budget, both in public and in parliament. The State of the Budget Report by Verité Research has consistently been more accurate on budget outcomes than projections of the government, which are approved by parliament. It thereby forms an important additional input for professional economic analysis and decision making in Sri Lanka. Overestimated tax revenue Sri Lanka has not met a revenue to GDP target set in a budget since 1991. Most recently, the parliamentary committee on Ways and Means reported that tax revenue fell 13% short of the budgeted target in 2023. For 2024, the government is expecting revenue of LKR 4,164 billion, a 42% increase from its revised projections for 2023. However, the State of the Budget Report projects a 14% shortfall, with revenue of only LKR 3,570 billion. In the report, 61% of the projected shortfall is attributed to overestimation of revenue from Value Added Tax (VAT). The remaining 39% is attributed to the overestimation of revenue from corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty. Interest-to-revenue ratio Sri Lanka has the highest interest-cost-to-revenue ratio in the world and reducing this ratio is critical for macroeconomic stability and sustainability. The budget for 2024 expects to lower this ratio to 64%. However, the revenue projections in the State of the Budget Report, together with the government calculation of interest costs, suggests this ratio will exceed 70%, as it has in the last few years. Sri Lanka will, thereby, fall short of the economic recovery plan agreed with the IMF, on what economists consider a critical indicator of debt sustainability.
Featured Insight
State of the Budget Report Estimates 14% Shortfall in Revenue Against Budget Projection
Sri Lanka is projected to fall short of its budget target on revenue to GDP (gross domestic product) for the 33rd consecutive year in 2024, according to the recently released ‘State of the Budget Report 2024’. The State of the Budget Report is compiled annually by Verité Research and published on PublicFinance.lk, Sri Lanka’s premier platform for economic insights. The report provides a robust analysis and objective assessment of the fiscal, financial and economic estimates in Sri Lanka’s annual budget. It mirrors the scope of a budget report that is expected to be published by the parliamentary Committee on Public Finance (COPF), with the same aim: of helping improve informed engagement with the budget, both in public and in parliament. The State of the Budget Report by Verité Research has consistently been more accurate on budget outcomes than projections of the government, which are approved by parliament. It thereby forms an important additional input for professional economic analysis and decision making in Sri Lanka. Overestimated tax revenue Sri Lanka has not met a revenue to GDP target set in a budget since 1991. Most recently, the parliamentary committee on Ways and Means reported that tax revenue fell 13% short of the budgeted target in 2023. For 2024, the government is expecting revenue of LKR 4,164 billion, a 42% increase from its revised projections for 2023. However, the State of the Budget Report projects a 14% shortfall, with revenue of only LKR 3,570 billion. In the report, 61% of the projected shortfall is attributed to overestimation of revenue from Value Added Tax (VAT). The remaining 39% is attributed to the overestimation of revenue from corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty. Interest-to-revenue ratio Sri Lanka has the highest interest-cost-to-revenue ratio in the world and reducing this ratio is critical for macroeconomic stability and sustainability. The budget for 2024 expects to lower this ratio to 64%. However, the revenue projections in the State of the Budget Report, together with the government calculation of interest costs, suggests this ratio will exceed 70%, as it has in the last few years. Sri Lanka will, thereby, fall short of the economic recovery plan agreed with the IMF, on what economists consider a critical indicator of debt sustainability.
Data
Reports
Acts and Gazettes
Insights
Dashboards
Annual Budget Dashboard
Budget Promises
Fiscal Indicators
Fuel Price Tracker
IMF Tracker
Infrastructure Watch
PF Wire
About Us
EN
English
සිංහල
தமிழ்
;
Thank You
Free and Open Access to
Public Finance Data and Analysis
Home
PF Wire
PF Wire
Featured
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
Read More
Filter By
Topic
Budget 2021
Budget 2022
Budget 2023
Budget 2024
Budget 2025
International Monetary Fund
Maldives
Articles
Revenue
Expenditure
Debt
Employee Provident Fund (EPF)
Financing
Agriculture and Irrigation
Civil Administration
Defence and Public Order
Education
Energy and Water Supply
Environment
Health
Social Protection and Welfare
Transport and Communication
Urban Development and Housing
IRD collects 55% defaulted taxes
Sri Lanka's IRD collected 55% of defaulted taxes outside the appeals process by June 2024 and exceeded its tax target, collecting Rs. 902 billion against a target of Rs. 826 billion. Judicial reforms are being made to e...
2024-09-03
The Morning
Read More
International bondholders give SL mid-September ultimatum
The Steering Committee stresses the urgent need to implement the Joint Working Framework for restructuring Sri Lanka's $12.5 billion foreign debt by mid-September 2024 to align with IMF targets and ensure economic stabili...
2024-09-02
Daily FT
Read More
Merchandise trade deficit widens in July
In July 2024, Sri Lanka's trade deficit widened due to higher imports, while export prices fell more than import prices. Services inflows rose, mainly from IT/BPO and sea transport, but outflows also increased. There wa...
2024-09-02
The Morning
Read More
Reform delays could suspend IMF programme, jeopardizing recovery
The Bloomberg Intelligence report warns that Sri Lanka's economic recovery is at risk if reforms stall after the presidential elections, potentially leading to a suspension of the IMF program. It emphasizes the need...
2024-08-29
Daily Mirror
Read More
page
18
of
164
‹
1
2
...
18
...
163
164
›
