CBSL Governor hails rare fiscal discipline; Govt. to beat targets for first time

Says Govt. revenue to surpass 15.3% of GDP target, and primary surplus more than 2.3%

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■ First fiscal outperformance in decades, improving debt dynamics

■ Private sector credit gradually recovering as public sector borrowing eases

■ Credit growth reflects a steady, not overheated, economic rebound

■ Inflation projected to stabilise at 5% next year, with GDP growth around 5%

CENTRAL Bank Governor Dr. Nandalal Weerasinghe yesterday gave a strong signal about the Government's improving fiscal performance with key indicators expected to exceed expectations as never before.

"The Government's fiscal performance is exceeding expectations, with stronger revenue and tighter spending producing a lower deficit, marking the first time in decades that fiscal targets have been surpassed," Dr. Weerasinghe said. He said the outcome reflects a rare display of discipline that has strengthened debt dynamics.

Speaking at a presentation on the CBSL's Financial Stability Review 2025 Dr. Weerasinghe said the Government's fiscal performance this year is more positive than projected, noting that the primary surplus and revenue ratios are expected to surpass budget targets.