ECONOMYNEXT – Sri Lanka has revised the 2025 revenue target due to higher income in the income tax and levies on goods and services led by vehicle import tax, while the government has reduced this year’s public investment, the new budget document showed.
President Anura Kumara Dissanayake government had aimed at achieving total tax revenue of 4,590 billion rupees for 2025.
However, the tax revenue has been raised by 2.9 percent to 4,725 billion rupees with increasing the targets of income tax and levies on goods and services, the data showed.
The income tax target for 2025 has been increased by 3.7 percent to 1,210 billion rupees and the goal on goods and services levies has been raised by 6.5 percent to 2,953 billion rupees, the latest budget document showed.
The government also has reduced the total estimated expenditure for 2025 to 7,057 billion rupees from 7,190 as it also cut the capital investment by 21.4 percent to 1,033 billion rupees.
As a result, the government has reduced its 2025 budget deficit to 1,448 billion rupees (4.5 percent of the GDP) from the earlier estimated 2,200 billion rupees (6.7 percent of the GDP), the official documents showed. (Colombo/November 07/2025)