ECONOMYNEXT – Sri Lanka’s tax revenues grew 20.7 percent to 1,349 billion rupees in the four months to April 2025, while current spending grew 13 percent to 1,603.3 billion rupees, preliminary Finance Ministry data shows.
Current spending grew 13 percent to 1,603 billion rupees, a slightly higher pace than the 10 percent annual rate projected in the budget.
Current spending took up, 184 billion rupees of the 234 billion rupees in extra taxes collected from the people.
People are paying more taxes, including through vehicles which was opened in the first quarter.
In April a public sector salary hike was given. In addition, more graduates are being hired this year in a public sector that is a big tax burden on the people, due to unemployed graduates being hired in the past.
There is an army of more than 100,000 ‘development officers’ taking tax money home, while others pay taxes after adding value by working in productive sectors of the economy.
Many public sector workers, including doctors, nurses, agricultural extension workers and police are also working providing value to the public.
Meanwhile capital expenditure has slowed 29 percent to 112.9 billion rupees. Sri Lanka’s capex reduced after a sovereign default ended foreign funding, and it will take some time for old projects to re-start and also new projects to be tendered after bilateral restructure agreements are signed.
There have been concerns raised that public procurement may be slowing due to officials being reluctant to take quick decisions. (Colombo/June06/2025)
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