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Foreign interest payments up by 13.9 percent

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2 years ago

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Foreign interest payments, which represent 4.7 percent of Sri Lanka’s total interest payments, have increased by 13.9 percent to Rs. 34.0 billion in the first four months of 2024, compared to the same period of 2023, according to the Mid-year fiscal position report–2024, presented by the Ministry of Finance to Parliament recently. Recurrent expenditure, which accounted for around 90 percent of Sri Lankan government’s total expenditure in the first four months of 2024, declined by 4.4 percent to Rs. 1,419.3 billion from Rs. 1,485.0 billion recorded in the same period of 2023.

 This was primarily led by the decline of 11.3 percent in interest expenditure to Rs. 726.1 billion from Rs. 819.0 billion in the same period of 2023, and is attributable to the decline in domestic interest payments by 12.3 percent to Rs. 692.1 billion due to the decline in domestic interest rates and the effects of the completion of Domestic Debt Optimization (DDO), the report said. However, foreign interest payments, which represent 4.7 percent of total interest payments, have increased by 13.9 percent to Rs. 34.0 billion. Non-interest recurrent expenditure increased by 4.1 percent in the first four months of 2024 compared to the same period of 2023 with the increase of expenditure on goods and services by 12.5 percent to Rs. 99.8 billion from Rs. 88.7 billion and the increase of expenditure on subsidies and transfers by 6.4 percent to Rs. 291.5 billion from Rs. 274.0 billion.

Expenditure on salaries and wages declined by 0.5 percent to Rs. 301.8 billion in the first four months of 2024 from Rs. 303.3 billion in the same period of 2023 owing to the effects of limiting new recruitments to essential positions and effective management of cadres. Capital and Net Lending declined by 0.4 percent to Rs. 159.9 billion in the first four months of 2024 from Rs. 160.6 billion in the same period of 2023. This was marked by a decline in transfers to public institutions, provincial councils, and net lending, despite the increase in expenditure for the acquisition of fixed assets by 20.8 percent.

Meanwhile, total Government revenue excluding grants increased by 48.3 percent to Rs. 1,216.0 billion in the first four months of 2024 compared to Rs. 820.1 billion in the same period of 2023 mainly due to the increase in tax revenue by 50.5 percent to Rs. 1,117.8 billion from Rs. 742.6 billion.

The increase in tax revenue was led by the increase in revenue from: 1) VAT by 89.5 percent or 199.7 billion driven by the increase of the VAT rate to 18 percent from 15 percent with effect from January 1, 2024, reduction in the VAT registration threshold from Rs. 80 million per annum to  Rs. 60 million per annum with effect from January 1, 2024, removal of the vast majority of VAT exemptions with effect from January 1, 2024 and the increase in imports by 9.5 percent in the first four months of 2024 compared to the same period in 2023;2) Income taxes by 27.3 percent or Rs. 52.3 billion due to the realization of the full impact of the tax policy changes that were made effective on January 1, 2023, but were reflected in increases of revenue from February 2023 onwards, impacts of increased wages both in the public sector and informal private sector (Year-on year increase of the public sector and informal private sector nominal wages rate indices were 10.6 percent and 7.1 percent, respectively in February 2024), positive impact of the increased economic activity and return to economic growth on the corporate and personal income taxes;3) Excise Duty on Petroleum by 165.7 percent or Rs. 46.0 billion driven by the increase in petroleum imports by 14.4 percent in the first four months of 2024 compared to the same period in 2023 and the net increase in Excise Duty rates with the increase of rates for petrol and diesel by Rs. 25 per litre on June 1, 2023 and the decrease of rates for Diesel by Rs. 6 per litre and for Petrol by Rs. 5 per litre on January 1, 2024;4) SCL by 107.4 percent or Rs. 16.0 billion driven by the rate increases for sugar and potato to Rs. 50 per kg and the increase in the volume of imports in major commodity items;5) CID by 68.5 percent or Rs. 13.9 billion due to the increase in CID rates from 0:10:15 percent to 0:15:20 percent effective from March 28, 2023, and the increase in imports;6)  SSCL by 19.3 percent or Rs. 13.5 billion due to the increase in the number of taxpayers with the lowering of the registration threshold from Rs. 120 million per annum to Rs. 60 million per annum with effect from January 1, 2024 and the impact of the increase in imports;7) Excise Duty on liquor by 20.6 percent or Rs. 12.0 billion due to the realization of the full impact of excise duty rate revisions on liquor implemented with effect from July 1, 2023, the indexation of Excise Duty to inflation and increase of excise duty rates by 14 percent on January 1, 2024, and the revision of annual excise license fees with effect from January 12, 2024; and8) CESS by 64.3 percent or Rs. 10.7 billion due to the increase in imports.

The increase of non-tax revenue by 26.8 percent or Rs. 20.8 billion in the first four months of 2024 also contributed to the increase in revenue. This was led by the increase in revenue from interest by Rs. 11.5 billion, fines, fees, and charges by 8.6 billion and profits and dividends by 3.7 billion. (SI)


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Heat Index at Caution Level in  the  Northern, North-central, North-western and Eastern provinces and in Hambantota and Monaragala districts during the day time

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3 hours ago

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2026/05/5

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 04 May 2026, valid for 05 May 2026.

The Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in  the  Northern, North-central, North-western and Eastern provinces and in Hambantota and Monaragala districts during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Maldivian President plants a sapling to mark 60 years of Sri Lanka–Maldives Diplomatic Relations

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8 hours ago

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2026/05/4

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President of the Maldives, Dr Mohamed Muizzu, who is on a State Visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, planted a sapling this afternoon (04) at Viharamahadevi Park in Colombo to commemorate 60 years of diplomatic relations between Sri Lanka and the Maldives.

Upon arrival at the Viharamahadevi Park in Colombo, President Dr Mohamed Muizzu was warmly received by President Anura Kumara Dissanayake. Children lined both sides of the pathway holding the national flags of the two countries and paid tribute to the visiting Maldivian President.

Among those present at the occasion were Deputy Speaker Rizvi Salih, Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath and the Mayor of Colombo, Vraie Cally Balthazaar, along with several other dignitaries.

[President’s Media Division (PMD)]

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Sri Lanka and Maldives strengthen ties with productive bilateral talks

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8 hours ago

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2026/05/4

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Following the bilateral meeting between President Anura Kumara Dissanayake and President Dr. Mohamed Muizzu of the Maldives, who is currently on a State visit to Sri Lanka, official-level bilateral discussions between the delegations of the two countries were held this morning (04) at the Presidential Secretariat.

The discussions commenced after the formal welcome ceremony accorded to President Dr. Mohamed Muizzu earlier this morning within the Presidential Secretariat premises.

Extending a warm welcome to the Maldivian President, President Anura Kumara Dissanayake expressed his appreciation for accepting the invitation to visit Sri Lanka.

President Dissanayake noted that President Muizzu’s visit, taking place as the two nations mark 61 years of diplomatic relations, reflects the strong partnership, mutual trust and longstanding friendship between Sri Lanka and the Maldives. The President further expressed confidence that the visit would mark a new phase in bilateral relations.

The two leaders engaged in extensive discussions on ways to further expand and diversify multifaceted cooperation, including economic, cultural and social ties, in a manner that delivers mutual benefits to the people of both countries.

Key areas of focus included tourism promotion, educational cooperation, youth and sports development, challenges faced by both nations in the fisheries sector within the Indian Ocean region, education and vocational training, as well as defence training and broader security cooperation.

Representing the Government of Sri Lanka were Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, Minister of Labour and Deputy Minister of Finance and Planning, Anil Jayantha Fernando, Minister of Science and Technology, Krishantha Abeysena; Deputy Speaker Rizvie Salih, Secretary to the President, Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Additional Secretary to the Ministry of Foreign Affairs (covering Europe, North America, East Asia and Oceania, Southeast Asia and Central Asia, South Asia, the Middle East and Legal Affairs) M. R. K. Lenagala, Sri Lanka’s High Commissioner to the Maldives, Mohamed Rizvi Hassan and Director (South Asia and SAARC) of the Ministry of Foreign Affairs, Foreign Employment and Tourism, Mahesha Jayawardena.

The Maldivian delegation included Minister of Foreign Affairs Iruthisham Adam, Minister of Economic Development and Trade, Mohamed Saeed, Minister of Fisheries, Agriculture and Marine Resources, Ahmed Shiyam, Minister of Homeland Security and Technology, Ali Ihusaan, Chief of Staff to the President, Abdulla Fayaz, Principal Secretary to the President on Foreign Relations, Mohamed Naseer; Chief Government Spokesperson, Mohamed Hussain Shareef, High Commissioner of the Maldives to Sri Lanka,Masood Imad; Minister of State for Foreign Affairs and Chief of Protocol , Mohamed Shahudy, Deputy Minister at the President’s Office, Mr Mohamed Hassaan and Minister Counsellor at the Maldives High Commission in Sri Lanka, Mr. Ismail Mamdhooh.

[President’s Media Division (PMD)]

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