Sri Lanka, July 31 -- Sri Lanka recorded a budget surplus of Rs. 9.5 billion during the first half of 2026, marking a significant recovery from the Rs. 405.6 billion deficit registered during the same period in 2025.

Total government revenue and grants rose by 27.1% year-on-year to reach Rs. 2.95 trillion between January and June, according to the Finance Ministry's Fiscal Review Report. This performance represents 55.8% of the Rs. 5.3 trillion annual estimate.

Tax revenue expanded by 25.9% to Rs. 2.71 trillion, achieving 55.2% of the full-year target of Rs. 4.9 trillion. Non-tax earnings surged by 43.6% to Rs. 243.6 billion, fulfilling 67.7% of the projected Rs. 360 billion. Conversely, grants dropped by 46.4% to Rs. 1.8 billion, secur...