Galle, Sri Lanka – August 7, 2025 – In a landmark development for the nation’s fiscal performance, Sri Lanka is likely to surpass its 2025 government revenue target of Rs. 4.5 trillion. President Anura Kumara Dissanayake, addressing Parliament, shared the encouraging news, highlighting strong revenue collection across key departments in the first seven months of the year.
“For the first time in history, we might be able to exceed the revenue targets for this year, as per the current signs,” the President stated.
The Inland Revenue Department has achieved 101 percent of its target, demonstrating effective tax administration and improved compliance. Sri Lanka Customs has exceeded expectations by reaching 115 percent of its target, driven by more efficient collection measures and enhanced monitoring. The Excise Department has also contributed significantly to the overall revenue growth, achieving 105 percent of its target.
These achievements reflect the government’s ongoing reforms aimed at improving revenue streams, widening the tax net, and reducing leakages that have historically hindered collection efficiency. Economic and fiscal experts attribute this surge to the expansion of the tax base, stronger enforcement measures that have reduced evasion, and the adoption of digital technologies in tax administration, which has streamlined processes and improved transparency.
If the upward trend continues, 2025 will mark the first time in Sri Lanka’s history that annual government revenue targets are not only met but exceeded. This milestone could pave the way for improved fiscal stability, better public services, and renewed investor confidence.
At R&R Partners Sri Lanka, we closely monitor such economic developments to provide our clients with timely advice on strategic business and tax planning. Stronger government revenue performance can influence policy decisions, taxation structures, and economic opportunities, making it essential for businesses to stay informed and prepared.
