Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

IMF projects to triple the Government Revenue within four year from 2022

IMF & Sri LankaMar 23, 2023
IMF projects to triple the Government Revenue within four year from 2022
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Sri Lanka Government Revenue fell since 2019 to 2021 due to massive tax cuts. Along with new taxes, the Tax revenue improved in 2022 and expect to grow by 61% in 2023 as per the IMF. IMF expects a substantial tax increase from 2022 to 2026 (197%) and total revenue to reach LKR 2 Trillion to close to LKR 6 trillion by 2026.

IMF highlights that the weak tax revenue performance in history reflected a combination of low tax rates, narrow tax bases, and low collection efficiency. That needs to address with wide-ranging tax reforms.

IMF state “The authorities have implemented a progressive tax reform package since May 2022” and “the authorities commit to introducing a property tax, as well as a gift and inheritance tax before 2025”.

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