2023 government expenditure surge matches the increase in interest payments​

Abstract

Government spending increased by 20% in 2023, reaching LKR 5,357 billion, up from LKR 4,473 billion in 2022. This LKR 884 billion increase was primarily due to an LKR 890 billion rise in interest payments. In contrast, spending on all other categories decreased by LKR 6 billion. Specifically, Capital Transfers increased by LKR 198 billion, Transfer Payments rose by LKR 190 billion, and Other Purchases of Goods and Services went up by LKR 117 billion. However, Salaries and Wages decreased by LKR 17 billion, and Net Lending dropped by LKR 494 billion.