Sri Lanka budget returns to Rs. 35.4bn surplus in August after two-month deficit
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Sri Lanka's budget returned to a cumulative surplus of Rs. 35.4 billion for the first eight months of 2026, after deficits in June and July pushed the balance into the red, the Finance Ministry's Fiscal Review Report showed.
The August turnaround implied a surplus of around Rs. 145 billion for the month alone, following deficits of about Rs. 188 billion in June and Rs. 119 billion in July. The eight-month surplus compares with a deficit of Rs. 411 billion in the same period of 2025.
Total revenue and grants rose 21.2% year-on-year to Rs. 4,002.3 billion, while expenditure grew a slower 6.9% to Rs. 3,966.9 billion. The ministry attributed the improvement mainly to revenue growth and expenditure rationalisation.
The primary balance posted a surplus of Rs. 1,644.6 billion, up 28.8% year-on-year and more than four times the Rs. 360 billion full-year estimate in the 2026 Budget. Tax revenue rose 20%, with VAT up 22% and income tax up 18%.
