Despite the severe impact of Cyclone ‘Ditwah’, Sri Lanka recorded a notable economic recovery in 2025, marking a significant turnaround following the country’s recent economic crisis.
With the support of the International Monetary Fund (IMF), Sri Lanka entered 2025 with a renewed focus on restoring macroeconomic stability.
Key economic indicators released for the year reflect substantial progress across multiple sectors.
Tax revenue, the primary component of government income, reached a historic high in 2025. The Inland Revenue Department reported a record revenue collection of Rs. 2,203 billion, the highest in its 93-year history. This represents a surplus of Rs. 33 billion above the annual target and a 15 percent increase compared to 2024.
According to the Central Bank of Sri Lanka (CBSL), total government revenue—including tax revenue, non-tax revenue, and grants—amounted to Rs. 4,961.8 billion during the first 11 months of 2025, reflecting a 35 percent increase compared to the corresponding period in 2024.
The Central Bank further reported that the primary account surplus rose sharply from Rs. 928 billion in the first 11 months of 2024 to Rs. 1,942 billion during the same period in 2025.
In external trade, Sri Lanka exported goods worth US$12.4 billion and imported goods valued at US$19.3 billion during the first 11 months of 2025, resulting in a trade deficit of US$6.9 billion.
Worker remittances amounted to US$7,197.1 million during the same period, recording a 21 percent increase compared to the previous year.
Gross official reserves, including the foreign exchange swap facility with the People’s Bank of China, stood at US$6 billion at the end of November 2025.
Tourism also recorded historic growth. According to the Sri Lanka Tourism Development Authority (SLTDA), a total of 2,344,978 tourists had visited the country as of December 29, 2025, making 2025 the year with the highest tourist arrivals in Sri Lanka’s history.
Tourism earnings during the first 11 months of the year reached US$2,910.6 million, the Central Bank reported.
Meanwhile, the Colombo Stock Exchange (CSE) posted record-breaking performance in 2025, reflecting renewed investor confidence.
The All Share Price Index (ASPI) reached an all-time high of 23,659.7, while total market turnover surpassed Rs. 1.2 trillion for the first time. Market capitalization also crossed the Rs. 8 trillion mark, another historic milestone.
Foreign investor participation in market transactions during 2025 was estimated at 6.2 percent.
