Sri Lanka recorded a budget surplus of Rs. 197.3 billion during the first five months of 2026, marking a significant turnaround from the deficit recorded during the same period a year earlier, according to the latest figures released by the Central Bank of Sri Lanka.
The Central Bank reported that the country’s fiscal and financial sector showed notable improvement in the five months ending May 2026. The overall budget balance registered a surplus of Rs. 197.3 billion, compared with a deficit of Rs. 236.6 billion recorded during the corresponding period in 2025.
Government revenue and grants increased substantially during the period. According to the Central Bank, total revenue and grants rose to Rs. 2,536.9 billion in the first five months of 2026 from Rs. 1,942.4 billion recorded during the same period in 2025, representing an increase of 30.6 percent.
Government expenditure, including net lending, also increased during the period, although at a slower pace than revenue. Total expenditure and net lending reached Rs. 2,339.6 billion during the five months ending May 2026, compared with Rs. 2,179.0 billion recorded a year earlier, reflecting an increase of 7.4 percent.
The Central Bank also released updated figures on tourism earnings. Revenue from the tourism sector amounted to US$151.1 million in May 2026 and increased to US$155.7 million in June 2026. During the corresponding month in 2025, tourism earnings stood at US$169.5 million.
Workers’ remittances remained another major source of foreign exchange. Remittance inflows reached US$847.0 million in May 2026 before declining to US$695 million in June 2026. The corresponding figure for June 2025 was US$635.7 million, according to the Central Bank’s data.
Sri Lanka’s gross official reserves were provisionally estimated at US$6.45 billion by the end of June 2026. The Central Bank said the estimate reflected the country’s official foreign reserve position at the close of the month.
The report also indicated an improvement in industrial activity. The Industrial Production Index increased by 1.6 percent in May 2026 compared with May 2025, reaching an index value of 99.9. The Central Bank attributed the increase primarily to higher output in the mining and quarrying sector, which expanded by 16.7 percent, and growth in the manufacture of apparel, which recorded a 5.8 percent increase.
The latest data released by the Central Bank points to stronger government revenue collection, an improved fiscal balance and continued inflows from overseas workers during the first half of 2026. The figures also indicate higher industrial output and provide updated estimates on tourism earnings and official foreign reserves for the period covered by the report.
