Wednesday, July 22 2026
Wednesday, July 22 2026
THE SURPLUS: In April 2026 Sri Lanka's budget surplus fell marginally from March, indicating a slight deficit, but current account was in surplus
MONETABRIEF - Sri Lanka's budget has posted a surplus of 105 billion rupees up to April 2026, helped by 34.7 percent growth in revenues, while current expenses grew at a much slower rate of 5.1 percent.
Tax revenues grew 31.7 percent to 1,776 billion rupees, and non-tax revenues grew 73.3 percent to 180.6 billion rupees.
Current spending grew 5.1 percent to 1,684.7 billion rupees. Current spending without interest however grew 15 percent to 927 billion rupees.
Interest costs fell 4.6 percent to 757 billion rupees. Sri Lanka has high nominal interest rates because the central bank has a high inflation target, depreciates the currency and destroyed domestic capital.
Until the IMF's Second Amendment in 1978, which led to the loss of parliamentary control and lack of accountability of the note-issue bank, for monetary debasement, and essentially un-anchored monetary policy, Sri Lanka had the same inflation and interest rates as the US.
Many Latin American countries which had commercial debt at the time, started to default.
Sri Lanka became an IMF Second Amendment default country in 2022, with the flexible exchange rate, involving printing money through various tools for a 5-percent rise in cost of living and then defaulting on its note issue.
The budget recorded a current account surplus of 272.8 billion rupees to April, which is higher than 221.9 billion rupees, showing exceptional fiscal management in line with the golden rule of budgeting.
Capital and net lending grew 49 percent to 168.6 billion rupees, leaving an overall budget deficit of 105 billion rupees.
The entire capital budget is being financed by tax revenues.
The overall surplus is slightly lower than the 116 billion rupees in March.
| US Dollar | 340.98 | Sell - |
| Euro | 391.44 | Sell - |
| Japan Yen | 2.114 | Sell - |
| Sterling | 458.31 | Sell - |
| AED | 91.58 | Indi - |
| 3 month bill | 10.13 | .08 ▼ |
| 12-m bill | 10.20% | .01 ▼ |
| Gold | $4035 | - - |
| ASPI | 21,417.80 | 7.19 ▼ |
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