Sri Lanka, Sept. 14 -- Sri Lanka's overall budget deficit dropped sharply to 109.7 billion rupees in the first seven months of 2026, down significantly from 556.1 billion rupees recorded during the corresponding period in 2025.Sri Lanka Business

This fiscal improvement was largely driven by a 25.1 percent expansion in government revenue and grants, which reached 3,421.3 billion rupees and easily outpaced a modest 7.3 percent growth in total expenditure and net lending, which totaled 3,531.0 billion rupees. The government debt stood at 30,795.04 billion rupees by the end of May 2026, comprising 18,609.43 billion rupees in domestic debt and 12,185.61 billion rupees in foreign debt.

External sector indicators showed positive momentum along...