The Ministry of Finance says Sri Lanka’s total government revenue is expected to decline in 2026 compared to 2025.

According to the Fiscal Strategy Statement 2027, revenue including grants is projected to fall from 16.7% of GDP in 2025 to 15.8% in 2026.

The Ministry said the decline is due to the normalization of tax income after the resumption of vehicle imports in 2025.

It also noted that external risks, including global trade disruptions and energy market instability, could affect future revenue targets.