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SL govt. revenue rises by 40.5% in first eight months of 2024
Due to increased tax collection and import relaxation
Revenue from taxes on external trade increased by 29.0 percent to Rs. 302.5 billion in the first eight months of 2024 from the same period in 2023, emanating from increase in imports due to the gradual relaxation of import restrictions, Pre-Election Budgetary Position Report 2024 issued by the Ministry of Finance earlier this week said.
The increases in revenue collection from Special Commodity Levies (SCL) by 110.1 percent to Rs. 67.2 billion with the increase in SCL rates on essential commodities such as sugar and potatoes and the increase in revenue receipts from Customs Import Duty (CID) and CESS. Revenue collection from the Ports and Airports Development Levy (PAL) slightly increased by 3.4 percent despite the phasing out of PAL on selected items.
Revenue collected from income taxes increased by 16.3 percent to Rs. 624.7 billion in the first eight months of 2024, achieving 57.8 percent of the annual estimate of Rs. 1,080.0 billion. The increase in revenue from income tax was mainly due to the increase in revenue collection from Advance Personal Income Tax (APIT) and Withholding Tax (WHT) in the first eight months of 2024 from the same period of 2023. Revenue from taxes on goods and services increased by 59.8 percent to Rs. 1,421.3 billion in the first eight months of 2024. This was mainly due to the increase in revenue collected from Value Added Tax (VAT) by 87.2 percent to Rs. 842.5 billion, surpassing the total VAT revenue realized in 2023 by Rs. 148.0 billion stemming from the increase in VAT rates, reduction in the registration threshold, and removal of the vast majority of exemptions. This increase was also driven by increased revenue from the Excise Duty on petroleum products, Excise Duty on liquor, and Social Security Contribution Levy (SSCL).
The revenue from non-tax increased by 31.7 percent to Rs. 209.3 billion in the first eight months of 2024 from Rs. 158.8 billion in the same period of 2023. This has mainly been driven by the increase in revenue from fines, fees and charges, and interest income.
The total government expenditure increased slightly by 5.4 percent to Rs. 3,476.9 billion in the first eight months of 2024. Recurrent expenditure, which accounted for around 87.5 percent of total expenditure in the first eight months of 2024, slightly increased by 3.4 percent to Rs. 3,041.6 billion from Rs. 2,941.7 billion in the same period of 2023. This was mainly driven by the increase of salaries and wages by 6.7 percent to Rs. 659.5 billion in the first eight months of 2024 from Rs. 618.1 billion in the same period of 2023 due to an increase in cost-of-living allowance and the increase of interest payments by 2.2 percent to Rs. 1,559.7 billion in the first eight months of 2024 from Rs. 1,525.7 billion in the same period of 2023 owing to the increase in interest payment on domestic debt, foreign debt and domestic loans. Expenditure on subsidies and transfers increased slightly by 1.5 percent to Rs. 623.8 billion in the first eight months of 2023. Meanwhile, the capital and net lending significantly increased by 22.4 percent to Rs. 435.3 billion in the first eight months of 2024 from Rs. 355.6 billion in the same period of 2023.
Government Revenue including grants increased by 40.5 percent or Rs. 739.3 billion in the first eight months of 2024 from Rs. 1,826.6 billion in the same period of 2023 owing to the increase in tax revenue by 41.4 percent to Rs. 2,348.5 billion in the first eight months of 2024 from Rs. 1,661.2 billion in the same period of 2023. Revenue from taxes on goods and services, which account for 60.5 percent of total tax revenue, increased by 59.8 percent, or Rs. 531.9 billion, to Rs. 1,421.3 billion in the first eight months of 2024 from Rs. 889.5 billion in the same period of 2023. This increase was largely driven by the notable increase in revenue from Value Added Tax (VAT), which increased by 87.2 percent to Rs. 842.5 billion in the first eight months of 2024 from Rs. 450.0 billion in the same period of 2023. Thus, revenue collected from VAT in the first eight months of 2024 outperformed and surpassed Rs. 694.5 billion of revenue collected from VAT for the entire year of 2023. However, positive momentum in revenue generation must be sustained and enhanced over the medium term with a focus on tax compliance, eliminating tax leakages, digitalization, and minimizing corruption vulnerabilities through strengthened tax administration.
Expenditure on salaries and wages for public servants in the first eight months of 2024 including the salaries of employees attached to security forces, police, and Provincial Councils increased by 6.7 percent to Rs. 659.5 billion in 2024 from Rs. 618.1 billion in the same period of 2023. The increase in salaries was mainly attributable to the rise in the cost-of-living allowance by Rs. 5,000 per month effective from January 2024, and the increase of the same allowance by another Rs. 5,000 per month effective from April 2024, as per Public Administration Circular No. 03/2024 and Management Services Circular No. 01/2024. Total pension payments increased by 9.7 percent to Rs. 254.0 billion in the first eight months of 2024 from Rs. 231.6 billion in the same period of 2023.
Interest Payments
Expenditure on interest payments on foreign and domestic debt amounted to Rs. 1,559.7 billion in the first eight months of 2024, which marks an increase of 2.2 percent compared to Rs. 1,525.7 billion recorded in the same period of 2023. Interest payments for foreign debt increased by 34.9 percent to Rs. 100.0 billion in the first eight months of 2024 from Rs. 74.1 billion recorded in the same period of 2023 partly due to the commencing of repayment of some bilateral loans. Moreover, the interest payments on domestic loans slightly increased by 0.6 percent to Rs. 1,459.7 billion in the first eight months of 2024 from Rs. 1,451.6 billion in the same period of 2023.
Welfare and Subsidy Payments
The estimates of Rs. 1,055.7 billion for 2024 have been earmarked for the welfare programmes of social welfare, social security, education, health and nutrition and development assistance which is 15.4 percent of the government’s primary expenditure and 3.5 percent of the GDP. The estimate of Rs. 1,055.7 billion for 2024 represents a 15.3 percent increase compared to the actual expenditure of 2023 amounting to Rs. 915.4 billion. In the first eight months of 2024, the government’s welfare expenditure amounted to Rs. 562.4 billion including Rs. 112.7 billion for the “Aswesuma” programme, Rs. 9.5 billion for school nutrition food programme, Rs. 4.1 billion for the “Poshana Malla” programme, Rs. 4.4 billion for school textbooks and uniforms and Rs. 24.2 billion for fertilizer subsidy. Total welfare expenditure in the first eight months of 2024 increased by 3.3 percent to Rs. 562.4 billion from Rs. 544.3 billion in the same period of 2023. The increase was mainly driven by the increase of 83.9 percent of expenditure on health and nutrition, and the increase in development assistance by growth of 12.4 percent.
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Discussion on Anuradhapura Sacred City Development Plan
A discussion on the Anuradhapura Sacred City Development Plan was held on Wednesday (30) afternoon at the Presidential Secretariat, under the leadership of Chief of Presidential Staff Prabath Chandrakeerthi and Acting Deputy High Commissioner/First Secretary of the High Commission of India Roshini Thomson.
During Indian Prime Minister Narendra Modi’s official visit to Sri Lanka, he had expressed his agreement to provide assistance for a Sacred City development project when he visited the Jaya Sri Maha Bodhi in Anuradhapura.
Accordingly, the Urban Development Authority and the Department of National Physical Planning have proposed jointly implementing development activities in the Anuradhapura Sacred City.
The draft proposal prepared jointly by the Urban Development Authority and the Department of National Physical Planning has already been submitted to the High Commission of India, and the discussion focused on the proposal.
President Anura Kumara Dissanayake also recently held discussions with the Maha Sangha and all relevant stakeholders regarding the Anuradhapura Sacred City Development Plan, and instructed officials to expedite the project.
The initial cost of implementing the Anuradhapura Sacred City Development Plan is currently estimated at Rs. 7.7 billion. The Government of India is expected to provide the financial contribution required for the project, which is expected to commence before the end of this year.
Under the project, a range of development programmes are to be launched while preserving the antiquity and religious character of the Anuradhapura Sacred City. These will include renovating access roads, ensuring the proper disposal of waste, improving sanitation facilities and restoring all dilapidated sites.
Second Secretary (DC) at the High Commission of India Ramya C. S., Director General of the Department of National Physical Planning W.T.H. Ruchira Withana, Director General of the Urban Development Authority D.M.D.S. Dissanayake and Director of the Department of External Resources Chandrika Senanayake, along with senior officials of the High Commission of India and officials from relevant institutions, were among those present at the occasion.
[President’s Media Division (PMD)]
News
India enter Asian Games final after Kishan and Bumrah ride roughshod over Sri Lanka
Defending champions India registered their biggest T20I win against Sri Lanka to make the final of the 2026 Asian Games men’s competition in Nisshin on Thursday.
A day after the ODI side chased down 406 against West Indies like it was child’s play on a flat Guwahati pitch, the T20I side scraped their way to 169, well above-par on a treacherous track filled with cracks. Sri Lanka were no match after that.
The result sets up the first India vs Pakistan final of 2026, and there will be a gold medal at stake.
Sri Lanka were a touch unlucky as Ishan Kishan miscued many aerial shots but they all fell in no-man’s land. But Nuwanidu Fernando did drop Kishan on 56, and that didn’t help as he went on to make 80* in just 46 balls. There were a couple of balls that misbehaved wildly, and it was a sign of things to come.
The chase felt like an act of cruelty against batters. Jasprit Bumrah bowled Test lengths and added new degrees of unplayability to the existing ones. Axar Patel bowled 14 dots and got a two-for and India finished the game with a team hat-trick. On top of all that, Sri Lanka suffered three run outs, two of which were of top-four batters.
In the end, they were rolled over for 45, the second lowest total in men’s games at the Asian Games and the joint-lowest total for a Full-Member team in men’s T20Is, alongside West Indies’ 45 against England in 2019.
India picked four spinners in their XI and Sri Lanka three in what was their first bit of action at the competition after their quarter-final fixtures were rained out. It proved to be the right strategy as spinners bowled 83% of all the balls bowled (149 out 179) across the 29.5 overs of play. They took 12 wickets, bowled 73 dots and went at an economy of 6.56. The quick bowlers conceded 44 runs in 30 balls. Bumrah’s share in that: 2 for 7 in two overs.
The bowlers’ domination started early in the game as the weather held for the second game running on the day.
Both Abhishek Sharma and Sanju Samson fell to fingerspin while trying to open up the off side. Samson made room and looked to go inside out over cover and was beaten by extravagant spin, but went for it again and Tharindu Ratnayake fired the ball in to smash his stumps. Sahan Arachchige, who had Abhishek lob one to short third, then checked every form of deviation to knock over Shreyas Iyer – the ball angled in, dipped, drew the batter forward and turned away to hit the stumps.
In the chase, Sineth Jayawardena looked to take Bumrah on early and looked hapless as the ball seamed in to beat the across-the-line swing and hit him on the back leg in front of all three. Sohan de Livera fell victim to Bumrah’s exaggerated angle from over the wicket and nicked to the keeper. For the first time in a men’s T20I, India has taken two wickets before conceding a run.
The fifth ball of Bumrah’s second over trampolined off a length, seemed to pick up pace off the pitch, and needed Samson to leap right up to catch it. Nuwanidu, the batter, was lucky that the line of the ball was not straighter.
Despite the Bumrah threat, India did not turn to pace for the remainder of the innings. That was likely because Lasith Croospulle was run out by sharp work from Ravi Bishnoi at short third in the over before, and Arachchige and Ashen Bandara committing the cardinal sin of sweeping Axar and giving away their wickets.
Washington Sundar’s introduction with Sri Lanka on 18 for 5 did not faze Nuwanidu. The first ball spun big but went down leg. Next three balls had two sixes, the second an effortless twirl of the bat to send the ball over long-on. Then Nuwanidu went for a non-existent single to short third and Sri Lanka ran their way out to a point of no return.
In conditions where batting was far from easy, Kishan and Vaibhav Sooryavanshi found ways to maximise the strengths of their respective games.
Sooryavanshi opened up the off side repeatedly by either making room or standing still and slapping balls, even when they were angling in. He brought up India’s 50 with 4, 6, 4 off Tharindu Ratnayake but fell to Arachchige, in similar fashion to Abhishek, soon after. He made 38 off 21. Only behind Kishan’s 80 not out. The next highest individual score was Nuwanidu’s 15.
Kishan then walked out and hit two sixes in his first 12 balls. He waited for the bad ball and wasn’t going to miss out if he got one… or two. However, he had to take chances as Shreyas Iyer fell and Axar – promoted above Tilak Varma – got stuck. Kishan’s reverse sweep off Arachchige from a leg-stump line during this slowdown showed he could pull off risks on demand.
Both Axar and Tilak fell cheaply but took India past 100 with handy stands with Kishan, who forced errors out of bowlers and brought up a 33-ball fifty in the 17th. He could have been out twice in the next two balls but survived a ball that turned in a right angle and Nuwanidu’s drop at mid-off.
India hit four sixes and four fours in the last eight overs. Kishan hit all of them bar the last six, hit by Washington. That took them to 169 for 7, a par score in general, maybe twice the par on the day.
Scores:
India 169 for 7 in 20 overs (Vaibhav Sooryavanshi 38, Shreyas Iyer 13, Ishan Kishan 80*; Tharindu Ratnayake 2-32, Sahan Arachchige 2-28, Wanuja Sahan 1-17, Lasith Croospullle 1-25, Nuwanidu Fernando 1-20) beat Sri Lanka 45 in 905 overs (Nuwanidu Fernando 15; Jasprit Bumrah 2-07, Axar Patel 2-08, Washington Sundar 1-18, Abhishek Sharma 2-2, ) by 124 runs
[Cricinfo]
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I extend my heartfelt wishes to all the sons and daughters of our country for a Happy World Children’s Day – President
Children’s Day Message from President Anura Kumara Dissanayake:
“Children are the most valuable asset of a nation. Ensuring their physical and mental well-being and creating an environment conducive to their proper development is a primary responsibility of any government. Children’s imagination, aspirations and creativity will determine the shape and colour of the country tomorrow. The country we build for children must not merely be a country prepared to be handed over to them in the future; it must be a country that gives space to their dreams today, listens to their voices and provides opportunities for them to realise their potential.
For the best interests of children, we are taking the necessary steps to ensure equal access to education, guidance, social protection, opportunities for sport, leisure and recreation, proper nutrition and access to healthcare, while protecting children from all forms of violence and discrimination and safeguarding their rights.
Race, religion, economic status, geographical background or any other circumstance should not be a barrier to any child’s education or proper development. Every child should have equal and fair opportunities to realise their potential, pursue their dreams and create the future they wish for themselves. To this end, we have already begun the process of reforming the education system in Sri Lanka, transforming it towards a skills-based system suited to the new world, one that does not place a burden on parents or cause distress to children.
Our aim is to ensure that no child is left behind in the new Sri Lanka we are building, and to provide every child with opportunities for development in a safe environment. It should be emphasised that the fundamental objective of all the programmes being implemented, from expanding educational scholarships to securing the future of children growing up in child development centres and those in need of care, is to create a dignified and secure tomorrow for every child in the country.
It is the aspiration of every parent to give their children a better life than the one they themselves experienced. We are currently steering the country’s economy towards a correct and stable direction in order to provide children with a safe and happy childhood, free from the shadows of an unstable economy. At the same time, we have launched the national operation “A Nation United” (Ratama Ekata), bringing everyone together to free the younger generation from the menace of illicit drugs.
At a time when we are working towards the goal of building a safe and better country for children, I greatly appreciate the initiative of the Ministry of Women and Child Affairs in organising this year’s World Children’s Day celebrations under the theme “Strong Minds – Enriched Children”, declaring a National Children’s Day Week and conducting a range of meaningful programmes aimed at strengthening children’s rights, well-being, protection, education and freedom.
I extend my heartfelt wishes to all the sons and daughters of our country for a Happy World Children’s Day”.
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