October 30, Colombo (LNW): The Ministry of Finance and Planning has reported that Sri Lanka’s tax collections rose by more than 32 per cent during the first three quarters of 2025, covering the period from January 01 to September 30, compared with the corresponding period last year.
Officials attributed the growth primarily to higher Value Added Tax (VAT) on imported vehicles, increased excise duty collections, and stronger revenue performance by Customs. By the end of September, total tax revenue had reached Rs. 3,563 billion, representing a 32.5 per cent increase over the previous year.
The Ministry noted that the country’s main revenue agencies—the Department of Inland Revenue, the Department of Customs, and the Department of Excise—had collectively achieved around 78 per cent of their annual targets by the end of the third quarter.
VAT from imports rose 42 per cent to Rs. 605 billion, while excise revenue surged by 94 per cent to Rs. 552 billion. Overall VAT collections climbed 31 per cent year-on-year to Rs. 1,239 billion.
In terms of economic growth, the Ministry stated that GDP at constant prices for the first half of 2025 reached Rs. 6,360.6 billion, up from Rs. 6,068.3 billion during the same period in 2024.
