Overall budget balance (% of GDP)
Revenue minus spending. A negative number is a deficit the government must borrow to cover.
Source: International Monetary Fund · As of 2026 · Provisional · View source
Chart of Overall budget balance (% of GDP) over time. -7.8 % of GDP (2000) → -4.2 % of GDP (2026).
Table
| Period | % of GDP |
|---|---|
| 2000 | -7.8 |
| 2001 | -8.5 |
| 2002 | -6.9 |
| 2003 | -6.2 |
| 2004 | -6.3 |
| 2005 | -5.9 |
| 2006 | -5.9 |
| 2007 | -5.8 |
| 2008 | -5.9 |
| 2009 | -8.3 |
| 2010 | -6.7 |
| 2011 | -6.0 |
| 2012 | -5.4 |
| 2013 | -5.0 |
| 2014 | -6.0 |
| 2015 | -6.6 |
| 2016 | -5.0 |
| 2017 | -5.1 |
| 2018 | -5.0 |
| 2019 | -7.5 |
| 2020 | -13.4 |
| 2021 | -11.7 |
| 2022 | -10.2 |
| 2023 | -8.3 |
| 2024 | -5.4 |
| 2025 | -2.3 |
| 2026 | -4.2* |
Sri Lanka's current situation
The budget balance was -4.2 % of GDP in 2026, -1.9 % of GDP compared with a year earlier. Current status: Watch. Healthy range: The EU uses a 3% of GDP deficit reference. Here a deficit smaller than 3% is Good, 3–6% Watch, larger than 6% Concern (indicative).
What is it?
The overall balance is government revenue minus total spending (including interest), as a share of GDP. Formula: (revenue − expenditure) ÷ GDP × 100. Negative = deficit, positive = surplus.
A simple example
If the government collects Rs 16 and spends Rs 20 for every Rs 100 of GDP, the balance is −4% of GDP: Rs 4 must be borrowed.
What happens when it is high
A balance near zero or in surplus stops debt from growing and builds credibility with lenders.
What happens when it is low
Large deficits (beyond 5–6% of GDP) pile up debt and interest costs; Sri Lanka ran deficits above 10% of GDP in 2020–22.
What is a healthy range
The EU uses a 3% of GDP deficit reference. Here a deficit smaller than 3% is Good, 3–6% Watch, larger than 6% Concern (indicative).
EU 3% deficit reference; IMF fiscal-sustainability practice.
What might happen next
Official projections
| Source | Year | % of GDP |
|---|---|---|
| International Monetary Fund | 2027 | -3.3 |
| International Monetary Fund | 2028 | -3.4 |
| International Monetary Fund | 2029 | -3.3 |
| International Monetary Fund | 2030 | -3.2 |
| International Monetary Fund | 2031 | -3.1 |
Simple statistical trend
No data yet
Improving: revenue reforms and spending control. Worsening: slower growth, higher interest costs or new spending commitments. Not financial advice.
A simple statistical trend, not a prediction of what will happen. Forecasts are uncertain and are not financial advice.
For experts
The deficit is the main driver of new borrowing and of the debt burden.
How we calculate this
General government net lending/borrowing, % of GDP (IMF WEO, code GGXCNL_NGDP). Annual; the latest year is an IMF estimate.