Concluding the budget speech, the President said the Budget proposals are not confined to paper alone and that they are proposals that are implemented in practice on the ground.
He assured that every new proposal will have a clearly accountable institution, outcome indicators, national priorities, a cash flow plan and transparency that can be easily observed by the public.
06.24 PM
Rs. 260 billion will be reallocated for Ditwah reconstruction in 2027. The President proposed that the supplementary estimate be presented to Parliament following the Budget Speech today.
06.22 PM
The Tourism Development Levy (TDL), imposed under the Finance Act No. 25 of 2003, will be abolished with effect from April 1, 2027.
A suitable financing mechanism will be formulated for tourism promotion and development, and until then the required funds will be provided by the Treasury on requests made by the Sri Lanka Tourism Development Authority.
06.22 PM
The Tourism Development Levy (TDL), imposed under the Finance Act No. 25 of 2003, will be abolished with effect from April 1, 2027.
06.20 PM
The Ports and Airports Development Levy (PAL) on imported newsprint and batteries used for solar energy storage will be removed from January 1, 2027, under the 2027 Budget proposals, providing tax relief on the importation of these items.
06.19 PM
The Special Commodity Levy on imported sugar will be increased by Rs. 10 per kg to protect the domestic sugar industry and ensure fair competition.
06.18 PM
CESS rates on 800 selected HS code lines will be reduced by 25% to simplify import tariffs and lower trade costs.
The 10% PAL on imported newsprint will be removed from January 1, 2027.
06.17 PM
The President said the Government cannot remove taxes on Sri Lanka’s 10 most-consumed goods, including dhal, onions and milk powder, citing potential economic and other repercussions.
However, provisions in existing tax laws will be amended to remove ambiguities, align with evolving business practices and ease procedural requirements, while protecting taxpayers’ rights and government revenue.
It is proposed to reduce the Special Commodity Levy on imported Sprats from Rs. 100 to Rs. 10 per kilogram, on Maldive Fish from Rs. 302 to Rs. 10 per kilogram, and on powdered and unpowdered dried chillies by Rs. 50 per kilogram, effective from November 13, 2026.
06.15 PM
A review of taxes and fees on the betting and gaming industry is proposed to eliminate double taxation and establish a simpler, transparent tax structure following the establishment of the Gambling Regulatory Authority.
06.14 PM
The supply of bunker fuel to ships engaged in international transport will be exempted from the Social Security Contribution Levy (SSCL) to strengthen Sri Lanka’s competitiveness as a regional maritime hub.
06.12 PM
Value Added Tax (VAT) on foreign currency transactions will be converted into Sri Lankan Rupees using the Central Bank’s Indicative Exchange Rate, with application guidelines issued by the Commissioner General of Inland Revenue.
06.11 PM
Value Added Tax (VAT) on cinema tickets will be calculated based on each party’s share of ticket revenue, rather than the full ticket value, ensuring fairer taxation across the film industry.
06.10 PM
The President says books and printed materials will be exempt from Value Added Tax (VAT) on imports and supplies.
As such, textbooks, dictionaries, encyclopaedias, children’s drawing and colouring books, educational publications and other printed books, as well as exercise books, will be exempt from VAT.
06.07 PM
The tax-free threshold to increase from Rs. 150,000 to Rs. 162,500 per month, exempting salaries and allowances up to this amount from income tax.
-Tax brackets: Revised to widen taxable income brackets, with the 6% tax slab set at Rs. 70,833 per month and subsequent slabs expanded from Rs. 41,667 to Rs. 50,000.
-Tax rates: Proposed rates are 6%, 12%, 18%, 24%, 30% and 36%, replacing the existing 18% rate immediately after the 6% bracket with 12%.
05.56 PM
Monthly professional allowances for judges increased by Rs. 25,000 in two phases from July 2027. Transport, driver and housing allowances also revised for judges.
05.55 PM
From April 2027, monthly travel and office rent allowances will be increased for Development Officers, Samurdhi Officers and Agriculture Research and Production Assistants.
05.54 PM
Daily food allowance for tri-forces increased by Rs. 315 for officers and Rs. 332 for other ranks from July 2027.
Monthly food and accommodation allowance for Police officers increased by Rs. 10,000 from July 2027.
Monthly risk allowance for prison officers doubled from Rs. 8,000 to Rs. 16,000. Civil officers’ allowance increased from Rs. 2,250 to Rs. 10,000.
05.52 PM
The Disturbance, Availability and Transport (DAT) allowance paid to medical officers will be increased from Rs. 70,000 to Rs. 95,000; the monthly special duty allowance of nursing officers and officers in the paramedical and supplementary medical service from Rs. 6000 to Rs. 12,000 and that of other health staff from Rs. 2000 to Rs. 4000.
The increase will be paid in two stages, with 50% from July 2027 and the balance in 2028.
05.50 PM
Academic allowance for university lecturers increased by Rs. 25,000 in two phases. Payments to external university lecturers increased threefold, from Rs. 1,500 to Rs. 4,500 per hour.
Payments to external lecturers at vocational and technical institutions increased by 100%.
05.49 PM
The monthly transport allowance paid to executive officers who are entitled to an official vehicle but use their private vehicles for official duties will be increased from Rs. 50,000 to Rs. 10.000.
The monthly allowance paid to officers entitled to an official vehicle who use fully electric private vehicles will be increased by Rs. 150 percent with effect from July 2027, to encourage the use of electric vehicles.
05.41 PM
A revised funding mechanism will be introduced in 2027 to ease salary-related financial constraints in local government institutions.
The Government proposes to fully cover staff salaries in 46 financially weak local authorities and revise funding limits for others. A further Rs. 1,750 million has been allocated for their capital projects.
Approval has been granted to fill 148,940 public sector vacancies. Around 40,000 recruitments have been completed, with funding to be provided for a further 110,000 recruitments.
05.37 PM
It is proposed to allocate Rs. 50 billion for the District Development Programme and the Decentralized Budget Programme, with Rs. 2 billion allocated to each district.
Of the total allocation, Rs. 47.75 billion will be used for special development projects identified at the district level.
The remaining Rs. 2.25 billion will be allocated to the Decentralized Budget Programme, providing Rs. 10 million per Member of Parliament.
05.33 PM
The President says it is proposed to allocate Rs. 5 billion under the Clean Sri Lanka initiative to increase the waste collection rate from the current 32% to 60% by 2029.
The project will be implemented across 100 selected local government authorities.
05.31 PM
The President announced that Rs. 100 million was proposed for higher education scholarships and technological support to strengthen journalists’ skills and professional development.
05.29 PM
The President says steps are to be taken to digitise and preserve sacred sites, historical artefacts and cultural heritage using technologies such as 3D laser scanning.
05.25 PM
The monthly Rs. 750 allowance paid to parents of war heroes who joined the Armed Forces before 2009 is proposed to be increased from July 2027.
05.24 PM
Rs. 250 million has been allocated to establish a Defence Development Research Centre under the Ministry of Defence to support research by the security forces.
05.23 PM
The President says it is proposed to allocate Rs. 300 million for the commencement of the relocation of the Colombo prison complex, including the Welikada Prison, the Magazine Prison and the Colombo Remand Prison, due to the severe congestion, to the Millewa area.
05.20 PM
A new, climate-appropriate uniform equipped with modern technology is proposed for police officers from June 2027.
Rs. 9.5 billion allocated to digitise the operations of the Sri Lanka Police, including the complete modernization of the National Police Academy.
It is proposed to allocate Rs. 200 million for feasibility studies and the preparation of plans to construct a new administrative building to house in a single building the various divisions of the Sri Lanka Police Department.
Rs. 500 million has been allocated for feasibility studies and planning to construct a 15-storey, modern Criminal Investigation Department building to strengthen investigations into cybercrime and financial fraud.
05.10 PM
70,000 houses are planned under the ‘A Place of One’s Own – A Beautiful Life’ programme. It is expected to construct 10,000 new houses in 2027.
The housing assistance provided per house under this programme will be increased from Rs. 1 million to Rs. 1.5 million.
05.09 PM
The President says Rs. 77 billion allocated to expand clean drinking water and sanitation facilities and ensure adequate water supplies for industries and other economic activities, with private investment also being considered.
05.07 PM
Around 13,000 families displaced by the armed conflict in the Northern and Eastern provinces remain to be resettled. The Government aims to complete their resettlement within two years, with an additional allocation of Rs. 4,000 million proposed on top of the Rs. 6,000 million already allocated.
10,000 houses are expected to be constructed in 2027, as part of the target to build 70,000 houses for low-income earners. Housing assistance per house will increase from Rs. 1 million to Rs. 1.5 million, with a proposed allocation of Rs. 15,000 million.
05.01 PM
The President says it is proposed to allocate Rs. 80,000 million for railway electrification.
Kelani Valley Railway Line: Rs. 45,000 million for the section from Maradana to Honagamma.
Main Railway Line: Rs. 16,400 million for the section from Maradana to Ragama.
Coastal Railway Line: Rs. 10,700 million for the section from Maradana to Panadura.
Land Acquisition and Other Operational Costs: Rs. 900 million.
04.59 PM
The President says Rs. 5,000 million has been allocated to purchase 5 new trains for the railway service.
Rs. 2,000 million have been allocated in 2027 for the programme to repair railway stations that have not been properly maintained for a long time.
04.56 PM
Metro Bus service to be extended to urban areas of Kandy, Galle and Jaffna.
100 electric buses expected as a donation from China, with Rs. 4,500 million allocated for depots, charging facilities and training.
04.53 PM
The President announces a record Rs. 95 billion allocated to modernise railway and bus services, improve transport connectivity and promote sustainable public transport.
04.51 PM
The President says Rs. 5,000 million has been allocated as advance preparedness to meet the requirements that may arise from the El Niño risk expected in the future.
It is proposed to amend the Fauna and Flora Protection Ordinance to increase, in addition to the existing term of imprisonment, the fine for killing, hunting, shooting, wounding or capturing a wild elephant from the current fine of Rs. 150,000 to Rs. 500,000 to Rs. 500,000 to Rs. 1 million.
It is proposed to amend the Increase of Fines Act, No. 12 of 2005 to increase the fine for illegally keeping an elephant in possession from the current Rs. 150,000 to Rs. 250,000 to Rs. 500,000 to Rs. 1 million.
04.49 PM
Rs. 700 million will be allocated from the Wildlife Fund to establish a hospital for treating wild animals on a three-acre site in the Nuwaragama Forest Reserve in Anuradhapura.
The government plans to establish a new elephant transit home on 15 acres in the Polonnaruwa district, with an estimated Rs. 5,000 million to be provided in phases from the Wildlife Fund.
The facility aims to reduce the risks to stranded baby elephants caused by long-distance transportation to the Uda Walawe Elephant Transit Home.
04.48 PM
Rs. 50 million has been allocated from the Wildlife Fund for initial work on a centre to treat and rehabilitate injured marine animals, including turtles and dolphins, on a two-acre site in Dodanduwa.
04.46 PM
Rs. 500 million from the Sri Lanka Tourism Promotion Bureau has been earmarked for concessionary loans to tourism service providers to purchase equipment, including boats, and promote marine tourism.
A cruise passenger terminal will be established at the Port of Colombo, while Rs. 240 million has been allocated to modernize tourist passenger facilities in Galle, Tangalle and Trincomalee and expand services.
04.44 PM
The President says Rs. 35 million allocated, in addition to Rs. 133 million from the Sri Lanka Tourism Development Authority (SLTDA), to establish a centralised online e-ticketing system for major tourist attractions.
04.41 PM
The government has proposed allocating Rs. 100 million to provide free spectacles to schoolchildren to address visual impairments that could disrupt their education.
“This is a serious concern. Twenty-five per cent of recent police recruits referred for medical examinations were found to have poor eyesight. This is a significant issue that must be identified and addressed at the school level,” the President said.
04.40 PM
The installation of a modern Doppler Radar System for highly accurate weather forecasting, received as a Japan International Cooperation Agency (JICA) grant, will commence in 2027.
04.38 PM
Rs. 400 million allocated to expand the Wolbachia-based dengue mosquito control programme nationwide.
04.37 PM
The government has proposed allocating Rs. 3,000 million in 2027 to replace ageing ambulances, with around 400 ambulances in the health service currently more than 20 years old.
45 new ambulances are expected within the next year, including 25 through an Asian Development Bank loan and 20 through a Japanese grant.
A further 100 ambulances will be added to the health service in 2027 with assistance from India.
04.35 PM
The government has proposed taking over the District General Hospitals in Mannar, Mullaitivu, Vavuniya, Kilinochchi, Gampaha and Avissawella from the respective Provincial Councils and bringing them under central government administration to improve service delivery to national hospital standards, in response to requests from residents in these areas.
04.34 PM
President Anura Kumara Dissanayake announces “Global Sri Lankan Heritage Citizen” for the second and third generations of the overseas community of Sri Lankan origin.
Under the programme, the government will grant dual citizenship, free of any charge, to the spouse and children of an applicant for dual citizenship, as well as to third-generation children.
04.32 PM
The President said the early warning system at the Kotmale Dam, which currently relies on an alarm being sounded when the dam gates are opened, needs to be further developed.
An allocation of Rs. 500 million has been made to procure disaster response equipment to strengthen early warning and emergency response capabilities.
A total of Rs. 2,900 million has been allocated for 13 new disaster management projects.
The government also plans to introduce a Dam Safety Act to establish the legal safeguards necessary to ensure the safety of major dams.
04.31 PM
The President has announced concessionary housing loans of up to Rs. 5 million for migrant workers, with interest subsidies of 10% on the first Rs. 3 million and 5% on the remaining Rs. 2 million.
04.24 PM
Monthly allowance for persons with disabilities increased by Rs. 2,500, from Rs. 10,000 to Rs. 12,500.
Monthly allowance for kidney patients increased by Rs. 2,500, from Rs. 10,000 to Rs. 12,500.
04.23 PM
The government has allocated Rs. 230 billion for social protection programmes in 2027, including Aswesuma, to provide continued financial assistance to poor and extremely poor households.
04.21 PM
The President announced that as appreciation awards for gold medalists at international competitions, it is proposed to provide Rs. 100 million for an Olympic gold medal, Rs. 100 million for a World Athletics Championships gold medal, Rs. 75 million for a Commonwealth gold medal, Rs. 50 million for an Asian gold medal and Rs. 15 million for a SAARC gold medal.
Correspondingly, it is also proposed to provide appreciation awards for silver and bronze medals at these competitions and for other international competitions.
A total of Rs. 8,500 million has been allocated for youth affairs and sports sector development in 2027, including funding for the proposed initiatives.
04.20 PM
Provisions of Rs. 1,500 million have been allocated for the development and modernization of the Sugathadasa National Indoor Sports Complex, the purchase of the required sports equipment and the construction of a synthetic running track at the Sugathadasa International Stadium.
Rs. 300 million allocated to establish the second phase of a National High-Performance Centre at the Diyagama Sports Complex.
04.18 PM
Estate workers are set to continue receiving the Rs. 200 daily incentive allowance introduced last year, with provisions made to maintain the programme throughout 2027.
Rs. 13 billion allocated for plantation sector development in 2027.
04.13 PM
Rs. 1500 million allocation to buy high-quality foreign livestock to serve as the foundational breeding stock for Sri Lanka’s farming industry.
Milco Badalgama facility allocated Rs. 3,000 million.
04.10 PM
An additional Rs. 300 million has been allocated on top of an existing Rs. 700 million food security allocation to help selected cooperatives purchase paddy from the Paddy Marketing Board, expand operations and acquire machinery required for rice processing.
Owners of uncultivated and low-productivity paddy lands will get greater flexibility to use those lands for field crops and permanent crops following a comprehensive survey. To encourage cultivation on these underutilised lands, the government has allocated Rs. 1.55 billion.
04.03 PM
The President announces that compensation paid to the families of fishermen who die in work-related accidents will be doubled from Rs. 1 million to Rs. 2 million.
03.58 PM
Rs. 100 million proposed to upgrade facilities, including the passenger terminal, at Sigiriya Domestic Airport to boost tourism.
03.56 PM
The President says the Mattala International Airport, which was constructed with a loan of USD 190 million and commenced flight operations in 2013, has today (2026) recorded an accumulated loss of over Rs. 70,000 million.
Moreover, this loss grows annually. Therefore, Expressions of Interest (EOI) have already been called and concluded for the development of the areas of airport operations, data centres, food and catering services, and aircraft services and maintenance jointly with international companies.
Steps are being taken to call for Requests for Proposals (RFP) from the selected companies. We expect to select new investors for this within the next year. – President
03.55 PM
The President said the Ratmalana International Airport will be developed for pilot training, and domestic, business and regional aviation.
To ensure aviation safety, a project of Rs. 6,000 million to rehabilitate the existing runway and extend it from 1,400 metres to 1,771 metres will commence in 2027 with the funds of AASL.
03.53 PM
The President says investment proposals are to be called in 2027 to develop 29 of the 61 tanks owned by Trinco Petroleum Terminal (Private) Limited at the Port of Trincomalee, under a public-private partnership.
The company was jointly established by the Ceylon Petroleum Corporation and Lanka IOC.
03.50 PM
A new car park will be constructed by Airport and Aviation Services (Sri Lanka) Limited (AASL) at a cost of Rs. 400 million to minimize vehicle congestion in and around the airport.
Rs. 200 million has been allocated for a feasibility study on widening the road and constructing a flyover near the airport to ease traffic congestion.
Airport and Aviation Services (Sri Lanka) Limited (AASL) will begin construction of an Rs. 800 million domestic air terminal next year to facilitate international passengers travelling to local destinations.
03.47 PM
The President says it is proposed to expand the Bandaranaike International Airport’s passenger handling capacity to meet projected demand of 16 million passengers by 2032.
03.45 PM
The government has proposed a Rs. 5,000 million loan scheme to support entrepreneurship in rural areas through Samurdhi banks.
Under the scheme, loans will be offered at a concessionary interest rate of 4%, with the Treasury covering the remaining interest cost. To qualify, entrepreneurs must employ at least five beneficiaries of the Aswesuma welfare programme.
03.44 PM
The President says the feasibility study currently being carried out for the development of the Colombo North Port is expected to be completed in the first half of next year.
It is expected to spend Rs. 300 million from the funds of the Ports Authority to expeditiously carry out the additional study on the Kelani River estuary.
03.42 PM
Rs. 7.5 billion will be allocated to support the development of the home-stay tourism sector.
Under the programme, eligible entrepreneurs will have access to concessionary loans of up to Rs. 2 million at an annual interest rate of 3% to establish or expand home-stay accommodation facilities.
03.41 PM
The President says an interest-free loan scheme will be introduced for the fisheries sector in 2027.
03.39 PM
Rs. 12.5 billion programme to support women-led households through concessional financing, the President announced.
Under the scheme, loans of up to Rs. 1 million will be provided through Samurdhi Bank at an annual interest rate of 3%, with lending to be extended on a group-loan basis.
03.37 PM
An allocation of Rs. 10,630 million has been made for the development and reconstruction of rural bridges.
03.35 PM
Flyovers will be constructed on the access road to the Kandy Multimodal Transport Centre and across the railway lines at Alawwa and Muththettugala.
03.32 PM
The government will strengthen funding for digital startups and new digital ventures in the private sector, allocating Rs. 10 billion for this purpose.
A total of Rs. 28.5 billion has been allocated for digital transformation in 2027, marking the largest allocation for the digital sector in Sri Lanka’s history.
03.31 PM
The President has announced a record allocation of Rs. 487 billion for the development and modernisation of Sri Lanka’s road and railway infrastructure.
03.29 PM
Rs. 30,000 million has been allocated for the construction of the stretch from Kurunegala to Galewela on the Kurunegala-Dambulla Expressway.
Construction of the Ruwanpura Expressway will commence on December 1, with an additional Rs. 27,000 million allocated for next year, on top of the allocation made for 2026.
03.27 PM
President Anura Kumara Dissanayake announced the adoption of GovPay and QR-based payment systems to promote cashless transactions.
03.25 PM
Students pursuing higher education at private universities will continue to have access to interest-free loans through state banks.
The monthly allowance provided to students under the scheme, currently Rs. 6,250, will be increased to Rs. 10,000 from April 2027.
03.22 PM
Education reforms for Grades 06 and 02 will be implemented from next year.
A Rs. 2,050 million project to construct residential facilities for staff of the University of Vavuniya is scheduled to commence in 2027.
A further Rs. 750 million has been allocated for 2027 to renovate universities affected by Cyclone Ditwah, including the University of Peradeniya.
03.20 PM
Taxes for new communication towers are to be removed for a five-year period, to expand high-speed broadband and internet coverage across rural areas by 2030.
03.19 PM
The annual one-time payment for eligible Dhamma school teachers will be increased from Rs. 7,500 to Rs. 12,500.
03.18 PM
From April 2027, the monthly allowance for students undergoing teacher training at the National Institute of Education will be increased from Rs. 10,500 to Rs. 20,000.
The daily allowance for Bhikkhu students at Pirivena institutions will be increased from Rs. 5 to Rs. 50, while the allowance for lay students will rise from Rs. 5 to Rs. 25.
03.17 PM
President Anura Kumara Dissanayake announced that broadband internet facilities will be provided to 750,000 selected students across the country as part of the government’s digital transformation agenda.
The Chinese Government has assured Sri Lanka that its programme to provide school uniform material will continue in the coming years.
03.15 PM
Operations have already commenced under GoVTech, which is 100% owned by the Treasury, to implement a roadmap for the digitalisation of public services.
The Personal Data Protection Act has been amended, and the Data Protection Authority has been activated.
03.14 PM
A Bill to establish the Digital Economy Authority and the Digital Economy Council will be presented in the first quarter of 2027.
The government intends to establish a Digital Economy Authority through legislation.
03.13 PM
Funding has been allocated in 2026 to promote digital literacy among selected school students through broadband vouchers, with further allocations planned for 2027.
Rs. 10,000 million has been allocated for a Digital Entrepreneurship Fund to support the growth of digital businesses and entrepreneurship.
03.12 PM
Bids called by the Ceylon Petroleum Development Authority for oil and natural gas exploration and production in four offshore blocks in the Mannar Basin, with bidding closing on February 02, 2027.
The blocks will be awarded promptly after a review, to enhance the country’s oil and natural gas production.
03.09 PM
A Digital Economy Act will be established, alongside a Cyber Security Authority in 2027.
A new procurement process for digital purchases will also be implemented.
03.06 PM
An AI Excellence Centre will be established at Wijerama Mawatha to strengthen AI capabilities, promote the responsible use of artificial intelligence and bring together government representatives, experts and members of the academic community under one roof.
03.04 PM
President Anura Kumara Dissanayake said that a 30-megawatt battery storage system will be installed at the Norochcholai Power Plant. He further announced plans to set up new floating solar power systems on lakes to generate 500 MW of energy.
03.01 PM
Fuel storage capacity will be increased to ensure supplies sufficient for 45 days.
The President says Rs. 22.34 billion has been allocated for a project to construct a jet fuel pipeline from Muthurajawela to BIA and develop fuel storage facilities with a capacity of 92,000 metric tonnes.
02.59 PM
The government has called for tenders for the Rs. 16,332 million for the Kolonnawa-to-Harbour Pipeline Project, which aims to reduce fuel unloading times from 96 hours to 48 hours.
The project, expected to be completed within 18 months, is also expected to reduce demurrage costs, with each day of delay currently costing the country approximately $30,000 in payments to shipping companies.
02.56 PM
The President announces plans to provide free smart meters to 300,000 electricity consumers using more than 180 units.
All electricity consumers of Lanka Electricity Company (LECO) using over 120 units will be provided with smart meters
02.51 PM
An allocation of Rs. 1,000 million has been made to acquire fixed scanning machines and container scanners to expand the scanning capacity of Sri Lanka Customs.
02.50 PM
The 10% Port and Airport Development Levy (PAL) on imported solar batteries will be removed.
02.48 PM
The government has proposed relief for households installing battery storage systems for rooftop solar power.
Under the proposed scheme, consumers will receive Rs. 25,000 per kilowatt, up to a maximum of Rs. 250,000 for systems of up to 10 kW.
An allocation of Rs. 3,500 million has been proposed for the scheme.
02.47 PM
The President says the government has appointed a committee to oversee efforts to expand Sri Lanka’s existing Free Trade Agreement (FTA) with India.
Sri Lanka is exploring the possibility of entering into a new Free Trade Agreement with China.
He further says Rs. 3,430 million has been allocated for the Sri Lanka-Europe Economic and Trade Cooperation Programme.
A proposal has been made to introduce procedures for trade transactions between ports and modernise the existing duty concession clearance process for goods imported for export purposes, with the aim of encouraging small and medium-scale industries to engage in exports.
02.44 PM
The government has allocated Rs. 26.5 billion to upgrade and strengthen the national power grid and improve system resilience to prevent nationwide power outages such as the one experienced recently.
02.43 PM
The President said renewable energy accounts for 62% of Sri Lanka’s total installed power generation capacity.
He noted that renewable sources accounted for 71% of the average electricity generated in November, while the share reached 80% on a single day in September.
Sri Lanka has already demonstrated its capacity to generate more than the current 62% share from renewable sources, the President said, stressing the need for further investment in the sector.
02.41 PM
The President says investment promotion will be facilitated by a new government entity with 100% shareholding by the Treasury.
A new law will be introduced for management of State assets.
02.40 PM
The government has allocated Rs. 1,990 million for the establishment of a National Single Trade Window and Rs. 100 million for the creation of a National Single Investment Window.
02.39 PM
The President said the legal framework governing the relationship between workers and employers will be revised and presented to Parliament.
New legislation to strengthen employer-employee relations will be presented to Parliament.
02.35 PM
The President said Sri Lanka lacked the expertise needed to develop a regulatory framework for gambling and had therefore sought assistance from foreign experts. The necessary regulatory provisions would be introduced, he added.
President Anura Kumara Dissanayake says the government will introduce a special incentives package aimed at encouraging investment and improving Sri Lanka’s attractiveness as an investment destination.
02.34 PM
The President said the Customs Ordinance amendment can be expected by March 2027.
02.32 PM
The Investment Protection Bill has been submitted to the Attorney General for legal clearance.
The Colombo Port City Economic Commission Act will be amended to attract foreign investment.
The President announced that a National Statistics Act is currently being drafted, highlighting that reliable data is essential for effective policymaking and governance.
02.29 PM
The President said the government hoped to successfully complete the 17th IMF programme, adding that a committee had been appointed to assess the need for a subsequent programme.
02.23 PM
Capital expenditure had historically remained low in comparison with recurrent expenditure, the President said.
However, the government aims to increase capital expenditure by 5.1%, with Rs. 2,000 billion allocated for capital spending, he said.
The president says the government’s objective is to achieve sustained 7% annual economic growth.
President Anura Kumara Dissanayake says the Middle East crisis had severely affected Sri Lanka’s energy supply and that the government had spent Rs. 147 billion on relief subsidies as a result.
02.18 PM
Sri Lanka has made significant progress in global economic and social rankings over the past two years, the President said. By 2026, rating agencies had upgraded the country’s rating from CC+ to B-, marking progress for a country that had previously been bankrupt.
02.16 PM
The President says loans extended by State banks to the private sector increased by 25% compared to 2024.
02.14 PM
Sri Lanka’s debt servicing costs stood at $3,707 million in 2025 and are projected to reach $3,591 million in 2026.
The figures are projected to decline to $2,986 million in 2027 and to $3,574 million in 2028.
Citing these figures, the President rejected claims that Sri Lanka would be unable to meet its debt servicing obligations in the coming years, pointing to the country’s projected capacity to meet these payments.
02.12 PM
Under the programme agreed with the IMF, the government initially aimed to reduce public debt to 95% by 2032. However, the IMF’s sixth review projects that, under the current economic trajectory, public debt could decline to 87% by that year.
02.10 PM
The President says annual inflation rose from 2.1% in December 2025 to 8.3% in October 2026.
02.07 PM
In 2022, 79.1% of government revenue was spent on interest payments. This was reduced to 45.9% in 2025 and further to 39.6% by September 2026.
02.05 PM
Sri Lanka’s debt levels were reduced to 95% by the end of 2025, from the level recorded at the end of 2022.
President Anura Kumara Dissanayake says the country’s growing positive standing in the international community is reflected through Sri Lanka successfully securing the release of a youth who had been sentenced to death abroad.
02.02 PM
Vehicle imports amounted to $1.6 billion in 2025, while letters of credit (LCs) worth $1.5 billion have been opened so far in 2026.
Over the past two years, vehicle imports have exceeded $3 billion. Combined with an additional $2 billion in fuel import costs, the country has had to bear more than $5 billion in additional expenditure.
The President said foreign reserves had nevertheless exceeded $7 billion despite these costs.
01.58 PM
The government spent $4,042 million on fuel imports in 2025. By September 2026, expenditure on fuel imports had reached $4,487 million, exceeding the total amount spent throughout the previous year.
01.56 PM
President Anura Kumara Dissanayake says SriLankan Airlines has suffered losses totalling Rs. 528 billion since former President Mahinda Rajapaksa cancelled its partnership with Emirates in 2008, allegedly over a personal issue.
Stating that the Cabinet has appointed a special committee to explore options to reduce the debt of the national carrier, he requested everyone in parliament to support these efforts.
The President expressed gratitude to migrant workers, saying the country expected foreign remittances to exceed $9 billion.
01.53 PM
The President says the 2027 budget is designed to strengthen the country’s production economy.
President Anura Kumara Dissanayake says the government’s objective is to manage the country’s current economic challenges while laying the foundation for a better future for the next generation.
01.47 PM
The President said economic stability had been achieved during one of the most challenging periods, referring to the Middle East conflict and its impact on global oil and fuel prices, which placed considerable pressure on the economy.
“We have still not been able to overcome these pressures,” he said.
The government spent more than Rs. 147 billion to provide relief to the public across several sectors, the President said.
01.41 PM
President Anura Kumara Dissanayake has commenced presenting the Appropriation Bill for the financial year 2027.
01.39 PM
Prime Minister Harini Amarasuriya presented the Appropriation Bill for the financial year 2027 to Parliament.
01.34 PM
President Anura Kumara Dissanayake has arrived at the Parliament premises to present the Appropriation Bill for the 2027 financial year.
The President, in his capacity as Minister of Finance, will deliver the second reading of the Appropriation Bill for the year 2027, commonly referred to as the Budget Speech.
According to the government, the 2027 Budget will include Rs. 2 trillion in capital allocations aimed at economic expansion and transformative development.
