Sri Lanka has outperformed expectations under the IMF loan program, achieving a massive fiscal surplus and exceeding revenue goals driven by tax reforms, vehicle imports, and stronger revenue collection.
Sri Lanka has significantly outperformed its key fiscal targets for June under the International Monetary Fund (IMF) loan facility, marking one of its strongest financial performances in recent years.
A major contributor to this achievement has been a sharp increase in government tax revenue, particularly following the resumption of vehicle imports after a prolonged ban.
While the IMF had projected a Primary Account Balance of Rs. 130 billion by the end of June, Sri Lanka recorded a remarkable surplus of Rs. 859 billion, demonstrating a fiscal performance far above expectations.
During the first six months of 2025, the government collected Rs. 2152 billion in tax revenue, surpassing the IMF’s target of Rs. 1650 billion for the same period. This exceptional growth has sparked optimism that Sri Lanka will surpass its annual fiscal targets.
According to IMF benchmarks, government tax revenue should reach Rs. 2750 billion by the end of September and Rs. 4350 billion by year’s end. Based on current trends, these figures now appear well within reach.
The surge in revenue has been fueled by the revival of vehicle imports, restructured tax policies, and improved efficiency in tax collection systems. These measures have strengthened the country’s fiscal stability and improved its outlook in the eyes of global financial institutions.
