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Sri Lanka posts record fiscal improvement amid Middle East risks

The government achieved a primary surplus for the third consecutive year, reaching 5.4 percent of GDP, while the current account balance also recorded a surplus of 0.7 percent of GDP for the first time since 1987, revealed Central Bank Economic Research Department Director Dr. L. R. C. Pathberiya. The overall budget deficit narrowed sharply to 2.3 percent of GDP in 2025 from 6.8 percent in the previous year, marking the country’s lowest fiscal deficit since 1956. [...]