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Sri Lanka to miss budget revenue target for 33rd year running in 2024

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State of the budget report estimates 14% shortfall in revenue against budget projection

Sri Lanka is projected to fall short of its budget target on revenue to GDP (gross domestic product) for the 33rd consecutive year in 2024, according to the recently released ‘State of the Budget Report 2024’.The State of the Budget Report is compiled annually by Verité Research and published on PublicFinance.lk, Sri Lanka’s premier platform for economic insights.

The report provides a robust analysis and objective assessment of the fiscal, financial and economic estimates in Sri Lanka’s annual budget. It mirrors the scope of a budget report that is expected to be published by the parliamentary Committee on Public Finance (COPF), with the same aim: of helping improve informed engagement with the budget, both in public and in parliament. The State of the Budget Report by Verité Research has consistently been more accurate on budget outcomes than projections of the government, which are approved by parliament. It thereby forms an important additional input for professional economic analysis and decision making in Sri Lanka.

Sri Lanka has not met a revenue to GDP target set in a budget since 1991. Most recently, the parliamentary committee on Ways and Means reported that tax revenue fell 13% short of the budgeted target in 2023.

For 2024, the government is expecting revenue of LKR 4,164 billion, a 42% increase from its revised projections for 2023. However, the State of the Budget Report projects a 14% shortfall, with revenue of only LKR 3,570 billion.

In the report, 61% of the projected shortfall is attributed to overestimation of revenue from Value Added Tax (VAT). The remaining 39% is attributed to the overestimation of revenue from corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty.

Sri Lanka has the highest interest-cost-to-revenue ratio in the world and reducing this ratio is critical for macroeconomic stability and sustainability. The budget for 2024 expects to lower this ratio to 64%. However, the revenue projections in the State of the Budget Report, together with the government calculation of interest costs, suggests this ratio will exceed 70%, as it has in the last few years. Sri Lanka will, thereby, fall short of the economic recovery plan agreed with the IMF, on what economists consider a critical indicator of debt sustainability.



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Navy Commander attends Trans-Regional Seapower Symposium in Italy

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The Commander of the Sri Lanka Navy, Vice Admiral Damian Fernando attended the 15th edition of Trans-Regional Seapower Symposium, organised by the Italian Navy in Venice in Italy, on 6 and 7 October 2026.

The symposium was held at the Italian Navy‟s historic Arsenal in Venice under the theme “From Regional Waters to Global Influence: Generating Effects Across the Midland Seas of the World”.

Organised biennially by the Italian Navy since 1996, the symposium brings together heads of foreign navies, naval representatives, academics, industry representatives and scientific researchers to discuss maritime security and the role of regional maritime dynamics in shaping the global balance.

The sessions of the symposium aimed to present an analysis of the relevance and influence of regional dynamics on global balances and their relative implications within the maritime domain.

Thus, topics discussed included; ‘Geopolitical Background: Global and Regional Dynamics in Comparison,’ ‘Pivotal Role of Cooperation among Regional Alliances as Security Providers,’
‘Maritime Regional Security Complexes, Global Order and Sea-Based Flows – What Role for Navies?,’ ‘New Arctic Chessboard: Seapower, Resources and the Race for Connectivity,’ ‘Future-
Proof Capabilities: A Naval Force Designed to Operate Across Oceans, Act Within Regions and Deliver Effects on the Ground,’ ‘Future Seas: Industrial Scale, Decisive Mass and Innovation –
Securing the Maritime Domain’ and ‘Future-Proof Leadership: Preparing Maritime Commanders and Sailors for Complexity,’

Cooperation fostered through symposiums of this nature, which bring together a multitude of global maritime stakeholders, will enable the Sri Lanka Navy to respond collectively to maritime
challenges, in pursuit of maintaining a safe, secure, prosperous and a stable ocean region.

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Heavy showers about (100-150) mm are likely at some places in the Central, Sabaragamuwa, Uva and Southern provinces

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WEATHER FORECAST FOR 13 October 2026
Issued at 2.00 p.m. on 12 October 2026 by the Department of Meteorology

A low-pressure area may form over the southeastern Bay of Bengal by 13 October.

Under the influence of this system, an increase in rainfall is expected over the island and the deep and shallow sea areas around the island during the next few days from tomorrow (13).

The general public, as well as the naval and fishing communities, are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard.

Heavy showers about (100-150) mm are likely at some places in the Central, Sabaragamuwa, Uva and Southern provinces.
Fairly heavy showers  above 75 mm are likely at some places in the other areas of the island. Showers or thundershowers will occur in most parts of the island.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

Misty conditions can be expected at some places in the Sabaragamuwa, Central and Uva provinces during the early hours of the morning.

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Elephant enrichment programme centred on the Thabbowa Reservoir proves successful

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As part of the new government’s initiative to formulate scientifically grounded, long-term solutions to the human-elephant conflict, a programme aimed at sustainably fulfilling the natural food and water requirements of wild elephants within forest ecosystems is being successfully implemented.

Spearheaded by the Ministers of Environment, guided by the Secretary to the Ministry of Environment, and supported by all affiliated institutions, this initiative transforms tanks (reservoirs) and forest tracts in high-conflict areas into enriched zones for wild elephants.

To facilitate this forest enrichment drive, 113 forests have already been declared protected reserves under the Vanaspathi National Programme. The initial phase of establishing tank enrichment zones was launched around the Kala Wewa and Thabbowa reservoirs.

Accordingly, the Ministry of Environment and ‘Clean Sri Lanka’ jointly carried out an initiative to develop these reservoir
catchments into designated enrichment zones.

A year ago, an operation to eradicate invasive plant species that posed a severe environmental threat to the Thabbowa reservoir precinct was conducted with the comprehensive labour and
technical support of government officials, environmental scientists, the tri-forces, and residents.

Since the new government’s policy of “A Sustainable Biosphere, An Evergreen Life” is practically implemented at the ground level, officials from the Department of Wildlife Conservation and the Department of Forest Conservation have been continuously monitoring the ongoing progress and
field conditions of this collaborative project under ministerial directives.

During these field reviews, it was observed that following the removal of invasive flora, the tendency of wild elephants to wander into villages searching for sustenance has notably declined; instead, they increasingly frequent the naturally regenerated grasslands along the reservoir fringes.

Having proven this ecological model’s success through trials at Thabbowa and Kala Wewa, the Ministry of Environment has finalized all necessary blueprints to swiftly replicate it across other sensitive wetland systems and reserve zones where human-elephant conflict is prevalent.

By enriching wildlife habitats, this sustainable, eco-friendly, and scientific strategy protects human lives and cultivated farmlands while securing space for wild elephants in their native habitats, continuing to show promising results across high-conflict regions.

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