Sri Lanka records Rs. 498.28 billion budget deficit in Q1 2025

Sri Lanka has reported a budget deficit of Rs. 498.28 billion for the first quarter of 2025, according to the Financial Performance Statement submitted to the Cabinet of Ministers.

The report, covering January 1 to March 31, 2025, shows total revenue at Rs. 1,064.66 billion and total expenditure at Rs. 1,562.94 billion, including income and spending across all Special Expenditure Units, Ministries, Departments, and District Secretariats.

The revenue breakdown includes Rs. 970.58 billion from taxes, Rs. 87.26 billion in non-tax revenue, Rs. 5.77 billion in capital revenue, and Rs. 1.05 billion in grants. On the expenditure side, Rs. 1,226.55 billion was spent on recurring costs, while Rs. 336.39 billion went toward capital expenditure, including government loan repayments.

The Financial Performance Statement was presented in line with Section 53 (1) of the Public Finance Management Act, No. 44 of 2024, which mandates the submission of quarterly fiscal data within 45 days of each quarter's end.

Meanwhile, the Central Bank of Sri Lanka reported a 3% drop in official reserve assets at the end of April, down to USD 6.32 billion from USD 6.53 billion in March.