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SL govt. revenue rises by 40.5% in first eight months of 2024

Published

5 months ago

2024/10/19

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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‘International actions for justice essential as Sri Lanka makes no effort for accountability’: HRW

Published

9 mins ago

2025/03/29

Thilina Walpola

Human Rights Watch (HRW) says that as long as Sri Lanka makes no effort to attain accountability, international measures to seek justice over alleged human rights abuses and war crimes, during Sri Lanka’s military operations against the LTTE, are essential.

Issuing a statement on the recent decision by the UK government to impose sanctions, including travel bans and asset freezes against Sri Lanka’s former Chief of Defence Staff Shavendra Silva, former Navy Commander Wasantha Karannagoda, former Army Commander Jagath Jayasuriya and Vinayagamoorthy Muralitharan, also known as ‘Karuna Amman’, Human Rights Watch stated that foreign governments should continue to impose targeted sanctions and use evidence that the UN has gathered to prosecute ‘Sri Lankan war crimes suspects’.

Furthermore, HRW, an International Non-Governmental Organisation, claimed that the United Kingdom government has advanced accountability in Sri Lanka by imposing sanctions on “four men implicated in atrocities during the country’s civil war”.

On Monday (24), the UK government has imposed sanctions on the former Chief of Defence Staff Shavendra Silva, former Navy Commander Wasantha Karannagoda, former Army Commander Jagath Jayasuriya and Vinayagamoorthy Muralitharan, also known as ‘Karuna Amman’ alleging them of being responsible for serious human rights abuses and violations during the Sri Lanka civil war.

Responding to the decision, the Sri Lankan government said that this is a “unilateral action” taken by the UK government and that such unilateral actions by countries do not assist but serve to complicate the national reconciliation process underway in Sri Lanka.

In the meantime, the then-President of Sri Lanka Mahinda Rajapaksa also expressed displeasure over the UK government’s decision that the action comes over ‘unproven allegations of human rights violations’ during the war with the LTTE.

Rajapaksa also alleged that imposing sanctions on Vinayagamoorthy Muralitharan also known as ‘Karuna Amman,’ who broke away from the LTTE in 2004 and later entered democratic politics, is a clear case of penalising anti-LTTE Tamils so as to placate the dominant segment of the Tamil diaspora in the UK.

News

Three-day mosquito control programme enters its final day

Published

9 mins ago

2025/03/29

Thilina Walpola

A special three-day mosquito control programme has been launched in eight districts, starting Thursday (27), in response to the rising number of dengue cases, with over 11,000 reported cases this year. The programme targets high-risk areas, including Colombo, Gampaha, Kalutara, Ratnapura, Batticaloa, Trincomalee, Matale, and Matara, where mosquito density is significantly high.

The National Dengue Control Unit (NDCU) highlighted the ongoing risk of dengue transmission due to intermittent rains, stressing the need for immediate intervention. The programme will run until March 29 and will involve thorough inspections of homes, schools, workplaces, factories, places of worship, and public spaces to eliminate mosquito breeding sites.

The initiative, organised by the Ministry of Health and Media, in collaboration with the NDCU, also encourages the public to actively eliminate any potential mosquito breeding grounds on their properties. In addition to field inspections, the use of drone technology for mosquito control in hard-to-reach areas will be deployed with support from the Sri Lanka Air Force.

The campaign was officially launched Thursday, in Nugegoda, with Western Province Governor Haniff Yusuf and Ministry Secretary Dr. Anil Jasinghe attending the ceremony. Health professionals, the military, and the Sri Lanka Police are participating in the effort, which aims to curb the spread of dengue, especially with the upcoming monsoon season.

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The government to establish new restaurants to provide nutritious meals at reasonable prices.

Published

10 hours ago

2025/03/28

Priyan

The government to launch a nationwide initiative aimed at establishing new restaurants, guaranteeing food security and providing the public access to nutritious and sufficient meals at reasonable prices.

This programme will be implemented with the collaboration of the National Food Promotion Board, the Ministry of Health and the Ministry of Agriculture. It will also involve current restaurant owners to secure their support. The first model restaurant under this initiative is scheduled to launch on April 01 in Narahenpita.

In the second phase of this initiative, the government intends to introduce a programme aimed at improving the standards of existing restaurants.

A preliminary discussion on this programme was held om Thursday (27) at the Presidential Secretariat, with the participation of officials from the National Food Promotion Board, the Ministry of Health and the Ministry of Agriculture.

During the discussion, officials emphasized the importance of protecting the public’s right to safe and nutritious food. The dialogue addressed several key aspects, including creating an environment that allows consumers to access food that meets proper health standards, enhancing consumers trust and encouraging collaboration between the public and private sectors.

Furthermore, discussions were held on the practical implementation of existing food policies and standards, ensuring that the business community embraces the importance of providing nutritious and safe meals. Officials also examined how the “Clean Sri Lanka” initiative contributes to this change in the food sector.

The meeting was attended by Kapila Bandara, Senior Additional Secretary to the President, S.P.C. Sugeeshwara, Additional Secretary to the President and other senior officials representing the National Food Promotion Board, the Ministry of Health and the Ministry of Agriculture.