Colombo, Dec 19 (NIA) – Sri Lanka’s state revenue has increased by 23 percent in the first nine months of 2016 when compared to the same period last year, mainly due to the eradication of corruption in the process of revenue collectors, the Finance Ministry said here on Monday.
The Ministry said state revenue in the first nine months of 2016 rose to Rs. 1,180 billion from the Rs. 959 billion earned during the same period in 2015.
Finance Minister Ravi Karunanayake attributed the rise in income to increased efficiency and eradication of corruption in the process of revenue collectors such as Sri Lanka Customs, the Inland Revenue Department and the Excise Department.
Large percentage of state revenue is from the income taxes which has increased to Rs 1067 billion from Rs 882 billion on Year on Year basis within the first nine months of this year, the Ministry said.
“During the last few years due to increased heavy public debt the revenue gradually came down to an average of 11 percent of the GDP in 2014. However, benefitting from the reforms in the tax revenue process the state revenue is expected to increase to 13.5 % of the GDP by the end of this year,” the Ministry said in a statement.
Minister Karunanayake said the government would be able to cover the recurrent expenditure through the state revenue this year benefitting the people as a result of the reforms introduced by the Good Governance government for the development of the country.
“Though the previous government made various claims that the country was developed during its regime, the state revenue was not sufficient even to cover the debt servicing for the last 5 years since 2011,” the Ministry said.