Vehicle Imports Help Drive Sri Lanka’s Government Revenue Growth in First Half of 2026

Sri Lanka’s decision to reopen the vehicle import market after several years has contributed to a significant increase in government revenue, with Finance Ministry data showing strong growth during the first half of 2026.

According to the latest statistics, total government revenue and grants rose by 27.1% compared with the corresponding period in 2025, reaching Rs. 2.956 trillion between January and June.

The figure represents 55.8% of the Government’s annual revenue target of Rs. 5.3 trillion for 2026, indicating substantial progress towards achieving the year-end goal.

Government revenue excluding grants also recorded a notable increase, rising by 27% from Rs. 2,321.7 billion in the first half of 2025 to Rs. 2,954.2 billion during the same period this year.

The data also highlights the continued importance of indirect taxation in Sri Lanka’s revenue structure. Taxes on goods and services accounted for 60% of total government revenue during the first six months of 2026.

Income taxes contributed 19%, while taxes on international trade accounted for a further 13%.

The increase in revenue comes as the Government continues efforts to strengthen public finances, with the reopening of vehicle imports providing an additional source of tax revenue alongside other economic activities.