A significant increase in government revenue due to vehicle imports

Government revenue has increased significantly due to the Sri Lankan government's decision to allow vehicle imports again after a ban of several years. According to the latest data reports released by the Ministry of Finance, a notable growth in government revenue has been recorded during the first six months of 2026.

The total revenue and grants received by the government during the period from January to June 2026 show an increase of 27.1 percent compared to the corresponding period in 2025. The total revenue and grants recorded during those six months amounted to LKR 2.956 trillion. This represents 55.8 percent of the government's overall revenue target of LKR 5.3 trillion for 2026, indicating good progress towards successfully achieving the year-end target.

Considering only the government's direct revenue, excluding grants, it has grown by 27 percent. Accordingly, government revenue, which was LKR 2,321.7 billion in the first six months of 2025, has increased to LKR 2,954.2 billion by the corresponding period in 2026.

These data once again clarify the prominence of indirect taxes on goods and services within Sri Lanka's tax structure. Sixty percent of the total government revenue received in the first half of 2026 came from these indirect taxes. Additionally, 19 percent of the total revenue was generated from income taxes, and 13 percent from taxes imposed on international trade.