Sri Lanka records a LKR 22 billion surplus after 63 years

Due to efficient management of the State revenue and expenditure, the government, for the first time in over 63 years, has been able to record a LKR 21.9 billion surplus in the primary balance of the fiscal accounts during the first ten months of the year 2017, the finance ministry spokesperson said.

Treasury officials opine that the favourable situation in the primary balance is a sign of positive growth in economic development and it would further enhance the capacity to manage the debt repayment efficiently. The primary budget balance equals the government budget balance before interest payments.

During the first ten months of the year 2017, the surplus in the budget primary balance was LKR 21.9 billion. It was in negative by LKR 37 billion during the corresponding period of 2016.

State revenue when compared with the first ten months of 2016 has increased by 10.4 percent to LKR 1473 billion in 2017. It was LKR 1333 billion during the same period in 2016. The tax revenue during the same period has increased by 14.2 percent to LKR 1470 billion in 2017.

With the appointment of Mangala Samaraweera as the Finance Minister in May last year, many predicted that the country's coffers will continue to deplete. However with the introduction of progressive policies by the new Finance Minister and the country recording a primary surplus for the first time in over 6 decades, there seems to be some hope for Sri Lanka to come out of the economic rot they are currently entangled in.