How did the government revenue rise by 53% in 2023?

Abstract

The Central Bank's Annual Economic Review for 2023 shows that government revenue increased significantly by 53% (LKR 1,062 billion) compared to 2022. This growth was driven by a broad range of taxes, with VAT contributing the most at LKR 231 billion, followed by non-corporate income tax (mainly personal income taxes) at LKR 144 billion, withholding taxes on interest at LKR 138 billion, excise taxes at LKR 127 billion, and other revenue totaling LKR 421 billion. Other revenue includes “Licence taxes, SSCL and other” (which rose by LKR 183 billion) and “Stamp Duty/Cess Levy/SRL/NBT/NSL/TL” (which fell by LKR 11 billion) and Grants (which fell by LKR 8 billion). Various tax reforms implemented in the second half of 2022 and throughout 2023 facilitated this increase in revenue collection.