Sri Lanka records Rs. 22.3 billion nine-month budget surplus

Sri Lanka recorded a Rs. 22.3 billion budget surplus in the first nine months of 2026, compared with a Rs. 441.4 billion deficit a year earlier, according to figures from the Finance Ministry's fiscal review. Revenue growth, including receipts linked to vehicle imports, outpaced the rise in spending.

Revenue excluding grants increased 20% to Rs. 4,594.9 billion. Including grants, receipts reached Rs. 4,601.6 billion against expenditure of Rs. 4,579.3 billion. Spending rose 7.1%, while nine-month revenue reached 86.8% of the annual estimate.

The cumulative surplus does not mean every month was in surplus. September alone recorded a Rs. 13.1 billion deficit. The nine-month primary balance, which excludes interest payments, was a Rs. 1,843.9 billion surplus, a separate measure from the overall budget balance.

Tax revenue rose 19.3% to Rs. 4,252.1 billion. Value-added tax receipts increased 22% to Rs. 1,505.6 billion, and income-tax receipts rose 20% to Rs. 996.4 billion. Non-tax revenue grew 29.8%, despite a fall in grants.

Capital expenditure and net lending totalled Rs. 542.8 billion, only 31.6% of the allocation. That low execution rate means much of the planned investment programme remained unspent before the final quarter. The headline surplus therefore sits alongside a question about the pace of public investment, rather than demonstrating that all planned development spending has been delivered.