Sri Lanka’s state coffers saw a dramatic surge in 2025, with tax and overall revenue climbing sharply due to stronger collections, rising imports, and improved efficiency across key government departments.
A report released by the Ministry of Finance reveals that Sri Lanka’s total tax revenue for the first 11 months of 2025 reached Rs. 4,613 billion, reflecting a significant strengthening of government finances.
According to the report, Rs. 2,105 billion was collected through the Inland Revenue Department, while Sri Lanka Customs contributed Rs. 2,223 billion. The Excise Department accounted for Rs. 213 billion, with a further Rs. 70 billion collected from other revenue sources. These figures highlight the broad-based nature of the country’s tax revenue growth during this period.
Sri Lanka Customs emerged as the largest contributor to tax revenue, accounting for 48.2 percent of the total collected in the first 11 months of 2025. The Inland Revenue Department followed closely, contributing 45.7 percent of total tax revenue, underlining its continued importance in the national revenue framework.
The Ministry of Finance also reported a sharp rise in tax revenue from vehicle imports. During the first 11 months of 2025, vehicle import taxes increased by Rs. 355 billion to reach Rs. 410.5 billion. By comparison, revenue from vehicle imports during the same period in 2024 stood at just Rs. 54.6 billion.
Overall state revenue showed strong growth as well, rising by 35.5 percent to Rs. 4,945.8 billion in the first 11 months of 2025. In the corresponding period of 2024, total state revenue was reported at Rs. 3,650.9 billion.
Income tax revenue also recorded notable growth, increasing by 13.2 percent from Rs. 969.2 billion in the first 11 months of 2024 to Rs. 1,096.9 billion in 2025. Revenue from Value Added Tax rose even more sharply, increasing from Rs. 1,174.0 billion in 2024 to Rs. 1,579.0 billion in 2025, a growth of 34.5 percent.
Economic analysts attribute this revenue surge to improved tax system efficiency, higher economic activity, and strengthened revenue collection mechanisms implemented across key government institutions.
