In a startling revelation, Sri Lanka’s government has officially disclosed that expenditure has skyrocketed to 1.5 trillion rupees in just the first three months of 2025, while revenue lags behind at just 1 trillion rupees, exposing a massive fiscal gap that’s raising eyebrows across the nation.
This financial update, mandated under Section 53(1) of the Public Finance Management Act No. 44 of 2024, requires the Minister of Finance to submit a quarterly financial performance statement to the Cabinet within 45 days of the quarter’s end. Accordingly, the statement covering January 1 to March 31, 2025, was presented to the Cabinet on time, ahead of the May 15 deadline.
The first quarter Financial Performance Report, compiled using classifications from the 2025 Annual Budget Estimates delivered by President Anura Kumara Dissanayake—who also serves as the Minister of Finance, Planning, and Economic Development details the cumulative income and spending across ministries, departments, district secretariats, and all special expenditure units.
With spending outpacing revenue by half a trillion rupees, the report paints a stark picture of the government’s financial trajectory. The public and policy analysts alike are now bracing for critical decisions on debt management, taxation, and national priorities.
