• Sri Lanka’s government education expenditure is the world’s third lowest 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-10)

  In 2022, Sri Lanka’s government, both provincial and central, allocated only 1.5 percent of GDP on all levels (including primary, secondary, and tertiary levels). This placed Sri Lanka as the third-lowest country in the ...

• Sri Lanka's government education expenditure is the lowest in South Asia 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-10)

  In 2022, Sri Lanka’s government, both provincial and central, dedicated only 1.5 percent of its GDP to education, including primary, secondary, and tertiary levels. This places Sri Lanka at the bottom of the list for ...

• 9 Years Since Bond Scam 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-02-27)

  The 27th of February marks nine years since the infamous “bond scam” of 2015. This resulted in a forensic audit, completed in 2019, on activities of the Central Bank of Sri Lanka (CBSL) with regard to bond market auctions ...

• Budget Transparency: Score card - Sri Lanka is ranked 80th out of 125 countries 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-07-31)

  The Open Budget Survey (OBS) is the world’s only independent, comparative, and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information, ...

• Forensic audit revealed LKR 10 bn loss to EPF in irregular bond market transactions 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-10-04)

  The Presidential Commission of Inquiry that investigated the 2015 Bond Scam recommended a forensic audit of the EPF's historical transactions in the bond and equity markets. The forensic audit, published in 2019, produced ...

• Revenue foregone by government due to tax concessions 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-04-01)

  For the fiscal year 2022/23 (April to March), tax concessions resulted in a total of LKR 978 billion in foregone revenue, the government reported on 31 March. The foregone revenue amounts to 56% of the total tax revenue ...

• Proposed 13% primary expenditure rule for Sri Lanka departs from economic theory and practice 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-07-24)

  The government of Sri Lanka gazetted the Public Financial Management (PFM) Bill to enhance transparency, accountability, and control of public funds. A key provision of the bill is the establishment of a limit on government ...

• Verité Research proposed 4 policy actions in 2020 to enhance Sri Lanka's public finance processes 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-08-30)

  The Public Financial Management Act, No. 44 of 2024 and the Parliamentary Budget Office Act, No. 6 of 2023, contain several key policy actions aimed at improving public finance management in Sri Lanka. In February 2020, ...

• Personal income tax (PIT): SL’s tax burden is less at lower incomes but more at high incomes compared to South Asia 

  Econ Team (Colombo: Verite Research, 2024)

  Sri Lanka's personal income tax burden varies significantly between lower and higher income levels. At lower incomes, particularly for those earning below LKR 250,000 per month, the tax burden—measured as the percentage ...

• Personal Income Tax (PIT): SL has the highest income tax rate at a lower income level in South Asia 

  Public Finance Infographics;
  Econ Team (Colombo: Verite Research, 2024)

  Sri Lanka imposes its highest tax rate at a relatively lower income threshold compared to other South Asian countries. Individuals earning over LKR 308,333 per month are subject to a steep 36% tax rate, making Sri Lanka ...

• Personal Income Tax (PIT): SL has the highest level of income with zero tax in South Asia 

  Public Finance Infographics;
  Econ Team (Colombo: Verite Research, 2024)

  Sri Lanka has the highest tax-free income threshold in South Asia – without the Maldives. Citizens are exempt from paying income tax unless they earn over LKR 1.2 million annually (LKR 100,000 per month). In comparison, ...

• Budget performance 2023 - Expenditure: Limit overshot by LKR 104 billion 

  Public Finance Infographics;
  Econ Team (Colombo: Verite Research, 2024)

  The Ministry of Finance Annual Report, released on 31st May 2024, shows that in 2023, the Government of Sri Lanka exceeded its total expenditure by LKR 104 billion. The total expenditure budgeted based on the government’s ...

• Sanitary napkins: Subjected to unreasonably high taxes 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-03)

  The total tax burden on Sanitary napkins in 2024 is 47.1%, this is significantly higher than the tax burden of selected non-essentials items, gold jewellery, raw silk, golf clubs and golf balls and military artillery weapons.

• Petrol and Diesel Market Prices vs. Formula Price in October 

  Econ Team (Colombo: Verite Research, 2024)

  Following the monthly fuel price revision for October, the market price of 92-octane petrol is LKR 10 above the fuel price formula, and the market price of Auto diesel is LKR 22 above the fuel price formula, as shown by ...

• Economic Transformation Act (ETA) sets a primary balance target of 2.3% of GDP: Sri Lanka has achieved this target only once in last 74 years 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-08-27)

  The Economic Transformation Act (ETA), enacted recently, sets out five targets related to the fiscal management of the government to be achieved in the coming years. , These targets, mentioned below, are aimed at ensuring ...

• WHT and PAYE had the largest growth in Q3 2023 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024)

  The Fiscal Management Report 2024, recently released by the Ministry of Finance, offers a comprehensive analysis of the government's revenue streams. A notable highlight from the report is the remarkable growth in revenue ...

• Primary and Budget Balances move in opposite directions as interest payments increase! 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024-01)

  The Fiscal Management Report 2024 published by the Ministry of Finance, shows that the Primary Balance improved from LKR -317 Bn in 3rd quarter 2022 to a positive LKR 124 Bn in 3rd quarter 2023. The Budget Deficit, however, ...

• Interest Costs Have Been Eating Up Revenue 

  Public Finance Infographics;
  Econ Team (Colombo: Verité Research, 2024)

  In 2023, for the first time in history, the government spent 9% of its GDP on interest payments, which took up 80% of the government revenue. A high interest-to-revenue ratio can be severely detrimental to a country's ...

• The Cost of a Kevili Table in 2024 

  Econ Team (Colombo: Verité Research, 2024-04-06)

  During Avurudu 2024, the cost of preparing a Kevili table was 2% less than in 2023. The ingredients used were taken from the popular YouTube Channel Appe Amma.

• 2023 Budget's revenue target missed by LKR 382 Bn 

  Public Finance Infographics;
  Econ Team (Verité Research, 2024-08)

  The Ministry of Finance Annual Report, released on 31st May 2024, shows that in 2023, total revenue including grants fell short of the Budget target by LKR 382 billion or 11%. In 2023, actual total revenue and grants ...

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