April 26, Colombo (LNW): State Plantation Enterprises Reforms and Finance State Minister Ranjith Siyambalapitiya announced a significant milestone in Sri Lanka’s fiscal landscape, revealing that state revenue soared to an impressive Rs. 834 billion during the initial quarter of this year. Surpassing projected figures, this achievement reflects a commendable 6% growth. Speaking at a press briefing themed ‘Collective Path to a Stable Country’ held at the Presidential Media Centre (PMC) on the 25th, Minister Siyambalapitiya highlighted the pivotal role of prudent financial management in sustaining this upward trajectory, expressing confidence in the country’s ability to meet revenue targets for 2024.
Addressing the challenges faced by the Department of Treasury Operations, Minister Siyambalapitiya underscored the constraints imposed by existing legislation, which restricts borrowing and currency printing. Despite escalating government expenditures driven by welfare and recurrent costs, effective financial strategies are underway to navigate these complexities.
A comparative analysis between the first quarters of 2020 and 2024 revealed notable spikes in recurring expenses, with a 35% increase overall. Noteworthy escalations include a 114% surge in loan interest repayments, a 60% rise in capital expenditure, and a staggering 177% growth in public debt repayments.
Turning to welfare spending, allocations for Samurdhi witnessed a substantial 25% increase from Rs. 93,670 million in 2020 to Rs. 117,107 million in 2024, indicating evolving fiscal priorities and burgeoning demands for social welfare provisions.
The buoyant revenue performance in the first quarter, surpassing initial expectations by reaching Rs. 834 billion, was buoyed by robust contributions from key revenue-generating agencies. The Inland Revenue Department led the charge with a contribution of Rs. 430 billion, followed by Sri Lanka Customs and the Excise Department, contributing nearly Rs. 354 billion and about Rs. 51 billion, respectively.
