Citizens Budget 2026

Citizens Budget 2026 · file page 1

Ministry of Finance, Planning and 
Economic Development
JANUARY 2026
Department of National Budget

Citizens Budget 2026 · file page 2

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 2-

Citizens Budget 2026 · file page 3

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 3-
The preparation of the Annual Budget 
Estimates is a constitutional requirement 
(Article 148 -152 of the Constitution). The 
Annual Budget Estimates for 2026, includes 
spending ceilings for each of the Ministries, 
Departments, and Public Institutions during 
the year 2026, along with the proposed 
means 
of 
financing 
this 
expenditure. 
Estimates are presented in an accounting 
format which is often too complex for the 
easy understanding of the general public.
Therefore, the Department of National Budget 
intended to disseminate the information of 
the Government Budget in a simplified and 
less technical manner. Further, Section 20 of 
the Public Financial Management Act states 
that a public-friendly version summarizing 
the main points of the annual budget should 
be presented in a transparent and easily 
understandable manner. Through this, it is 
expected that all citizens and tax payers 
can better understand how tax revenues 
are being spent and the government’s 
priorities in allocating these resources in 
an optimal manner. It is expected that this 
initiative will lead to greater transparency and 
accountability in terms of resource allocation 
and its efficient utilization.
Instead of presenting estimates categorized 
by Ministries, Departments, and spending 
Heads, this publication provides simplified 
information on government expenditure for 
key projects and programmes  by sector. 
Furthermore, the provisions for debt servicing 
and contingency services are not considered 
under sectors. For easy reference, rupee 
figures of sectoral totals have been rounded 
off to the nearest billion and therefore, there 
may be slight discrepancies in tallying with 
the figures of the accounting format. 
This document has been updated after the 
budget speech by incorporating budget 
proposals. This document is also published in 
Sinhala and Tamil languages in Unicode font 
for making it accessible to visually impaired 
people.

Citizens Budget 2026 · file page 4

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 4-
1.	
Budget Process in Sri Lanka 
2.	
Basis for preparation of the budget for the year 2026
3.	
Revenue and Expenditure 
4. 	
Budget at a Glance
5.	
 Common Subjects
Content
Healthier Life Towards a Healthier Society
Achieving Quality, Equity, and Excellence in 
Education
Safe, Efficient, Eco-friendly and, 
Sustainable Transport Services 
Support the Aspiration of Decent and 
Comfortable Living
Productive, Modernized and Sustainable 
Agriculture to Enhance Country’s Food and 
Nutrient Security 
Towards an Evergreen Life
Commitment towards a Peaceful and Fair 
Society
National Security 
Economic Services and Entrepreneurship 
Sustainable and Secure Energy Supply
People Friendly Public Service
A Universal Social Protection System

Citizens Budget 2026 · file page 5

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 5-
Annual Budget 
Preparation 
JUNE | 2025
2025
2025
2025
SEP | 2025
NOV | 2025
NOV | 2025
DEC | 2025
JULY | 2025
SEP | 2025
SEP | 2025
DEC | 2025
Issuance of Budget 
Call circular
Budget Discussions
Gazette the Appropriation Bill
Second Reading of the Appropriation 
Bill (Budget Speech) 
Submission of the committee stage 
amendments to Parliament 
Signing of the Warrants by 
Hon Minister of Finance
Obtaining the approval of the 
Cabinet of Ministers 
Obtaining the approval of the Cabinet of 
Ministers for Appropriation Bill 
First Reading of the Appropriation Bill 
Second Reading Debate 
Third Reading Debate 
Issuance of the Authorization Circular by 
the Secretary to the Treasury
30 
05 
08 
17 
04 
15 
05 
18 
07
13
18
01
08 
26 
30 
AUG
NOV
NOV
SEP
NOV
DEC
-
-
-
In accordance with the provisions of the Public Financial Management Act No. 44 of 2024, the national 
budget process is prepared following a clear annual calendar.  The budget calendar shows the sequence 
of activities and timing involved in preparing and approving the national budget each year. The budget 
preparation process commences with the issuance of the Budget Call Circular which provides the 
guidelines and directives to Ministries, Departments and other public institutions to prepare the Budget 
Estimates and process ends after issuing the Authorization Circular that allows Ministries, Departments 
and Public Institutions to incur expenditure based on the approved budget during the coming year.

Citizens Budget 2026 · file page 6

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 6-
Basis for 
Preparation of 
Budget Estimate 
2026
The Parliament passes the Appropriation Bill every 
year in order to authorize the expenditure to be 
incurred by the government for a particular fiscal 
year, to authorize the borrowing of the government 
during that year, and to make certain arrangements 
for the management of public expenditure during the 
year. The following guidelines were used to prepare 
budget estimates for the year 2026. 
1.	
A Thriving Nation , A Beautiful Life –Manifest of the Present Government 
2.	
Following directives of the Public Financial Management Act No. 44 of 2024 
• 
Government's Primary Expenditure should not exceed 13% of the estimated 
nominal gross domestic product for the relevant financial year (Section 15 of the 
Act) 
•  
The Annual Budget Reserve shall not exceed two per centum of the proposed 
estimate of the Primary Expenditure (Section 25 of the Act)
3.	
Medium Term Macro-Fiscal Framework 2025-2030, by the Department of Fiscal Policy
•	
The economy is expected to grow by 4-5 percent in 2026
•	
The government revenue is expected to be over 15.4% of GDP in 2026
•	
The government expenditure is expected to maintain at 20.5% of GDP
•	
The public investment is expected to maintain at 4.0% of GDP in 2026
•	
The budget deficit for the year 2026 is expected to maintain at 5.1% of GDP
•	
Achieving a primary balance (expenditure excluding loan interest payments) of 
2.5% of GDP (a necessary step to achieve debt reduction and the rebuilding of 
fiscal buffers)

Citizens Budget 2026 · file page 7

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 7-
Revenue & 
Expenditure 
GOVERNMENT REVENUE
The estimated total revenue for the year 2026 is Rs. 5,365 billion. Of this, Rs. 4,910 
billion is expected as tax revenue and the balance Rs. 465 billion is expected as non-tax 
revenue and grants. The tax revenue mainly consists of Value Added Tax (VAT), tax on 
external Trade and Excise tax while the non-tax revenue consists of interest income, rents, 
dividends, profits and fees and charges.
GOVERNMENT EXPENDITURE
For the year 2026, including debt servicing, the government expenditure is Rs. 8,980 
billion, of which Rs. 4,495 billion has been allocated for debt servicing. It includes 
Rs. 2,617 billion for loan interest payments and discounts,  while Rs. 1,878 billion for 
loan repayment. Also, the primary expenditure is estimated at Rs. 4,485 billion. Primary 
expenditure includes all government expenses excluding debt repayment and interest. 
The primary expenditure consists of salaries and wages (Rs. 1,464 billion), Pensions (Rs. 
510 billion), other recurrent (Rs. 1,131 billion) and capital expenditure (Rs. 1,380 billion).
Expenditure included in the budget estimates for the year 2026 under 25 Ministries, 09  Provincial 
Councils, District Secretariats and  Departments and 21  Special Expenditure Units. The 
Citizens Budget summarizes all expenditure into 12 sectors with the view of presenting a public 
– friendly version to citizens. Further, cross-cutting initiatives like digitalization, maintenance, 
rehabilitation and improvement and research and development have been extracted from each 
spending head and presented in the last section of the book for more information. 
STRUCTURE OF DETAILED BUDGET ESTIMATES AND CITIZENS BUDGET

Citizens Budget 2026 · file page 8

Healthier 
Life towards 
a Healthier 
Society

Citizens Budget 2026 · file page 9

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 9-
Rs. 43.4 bn
Hospital Development
Rs. 12.9  bn
Nutrition including Thriposha Programme 
Rs. 11.9 bn
Preventive  Measures
Rs. 1.3 bn
Research & Development in Health
Rs. 24.9  bn
Capacity  Building of 
Health Staff
Rs. 364.3  bn 
Hospital Operation
Rs. 6.0 bn 
Development of Indigenous Medicine
Rs. 187.7  bn
Medical Supplies
Rs. 4.2 bn
Suwasariya Ambulance Service
Rs. 657 bn 
for 2026
To provide health services to the nation through 03 National hospitals, 15 Teaching hospitals, 14 
specialized hospitals, 21 District General hospitals and Base hospitals and other Divisional hospitals, 
MOH Offices and Primary Health Care Units
Employing, 25,447  Doctors,  41,075  Nurses, 9,169 Midwives, 2,317 Public Health Inspectors and 
other staff in health related Institutions .
	
Island-wide Hospitals Network
Capital
Rs. 113.6  bn 
 Recurrent
Rs. 543.1 bn

Citizens Budget 2026 · file page 10

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 10-
What You Receive ?
Key Welfare  Programmes 
Rs. 7.5 
bn
Rs. 5.0 
bn
Rs. 1.2
bn
Rs.  0.3
bn
Rs. 4.2
bn
Nutritional Food 
Package for 
around 265,000   
expectant 
Mothers
For Suwasariya 
Ambulance 
Service
Maternal and early 
childhood nutrition 
For  Thriposha 
Programme
For Agrahara 
Insurance 
Scheme for 
Pensioners
1.	 Ensuring uninterrupted supply of Pharmaceutical, surgical and Laboratory items 
2.	 Providing bio-medical equipment and lab apparatus for hospitals 
3.	 Maintenance of hospitals and bio-medical equipment 
4.	 Facility improvement of cancer treatment, bone marrow transplant and ETU in Kandy 
hospital
5.	 ETU and ward improvement in Chilaw hospital 
6.	 Improving facilities for cardiac, oncology, and paediatric treatment facilities in 
Rathnapura hospital 
7.	 Improving ETU facilities in Trincomalee  Ampara and Batticoloa hospitals 
8.	 Constructing a new building at Badulla hospital
9.	 Construction of Accident and Emergency Unit at Mannar hospital  
10.	Expanding operation facilities in Moneragala hospital 
11.	 Improving ETU facilities in Kegalle hospital 
12.	Improving access and quality of primary healthcare services across all district of 
the country by strengthening primary medical care institutions through providing 
bikes for sample transportation, lorries for clinical waste transportation, ambulances 
for patients transportation, renovation of wastewater treatment plants in hospitals, 
providing medical equipment, building jogging paths and exercise areas in selected 
300 locations and renovation of health related offices  
13.	Improving medical facilities in selected hospitals including Kandy, Anuradhapura, 
Kurunegala, Trincomalee, Badulla by constructing buildings, providing equipment
14.	Provision of High-Quality Radiotherapy for Cancer Patients in Sri Lanka with High 
Energy Radiation
15.	Health Sector salary including hospital staff
16.	Management of Clinical waste of Hospitals 
17. 	Health information quality improvement
Rs.	
185.7 bn 
Rs.	
13.5 bn 
Rs. 	
31.2 bn 
Rs. 	
1.12 bn 
Rs. 	
0.65 bn 
 
Rs. 	
0.87 bn 
Rs. 	
0.70 bn 
Rs. 	
1.0 bn 
Rs. 	
0.23 bn 
Rs. 	
0.5 bn 
Rs. 	
0.5 bn 
Rs. 	
8.0 bn
Rs.	
4.5 bn
Rs.	
2.5 bn
Rs.	
292.0 bn
Rs. 	
1.3 bn
Rs. 	
3.0 bn

Citizens Budget 2026 · file page 11

Achieving 
Quality, Equity, 
and Excellence 
in Education

Citizens Budget 2026 · file page 12

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 12-
  Providing quality school education to around 4.1 million Students Island wide through 10,191 
Schools by employing 236,129 teaching staff
	 Providing higher education to around 192,750 under graduates through 19 government 
universities with the assistance of 11,521 academic staff and 12,826 non-academic staff
	 Vocational education to around 110,000 students
Rs. 538.1  bn
School Education
 
Rs. 135.8  bn
University Education
Rs. 21.0  bn
Vocational  Education
Rs. 7.1  bn
Science and Technology
Rs. 4.7 bn
Pre-Primary Education
Rs. 1.3 bn
Dhamma School 
Education
Rs. 708 bn 
for 2026 
Capital 
Rs. 98.9   bn 
 Recurrent
Rs. 609.3 bn

Citizens Budget 2026 · file page 13

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 13-
Rs. 538.1 bn  
School  Education 
Personal emoluments for staff related to school education 
Maintenance, rehabilitation and improvement of school buildings 
and other assets of schools 
Holding government exams including O/L, A/L  
Support for Piriven Education
Safety improvement of schools against disasters 
Development of playgrounds, sport infrastructure and hostels in 
schools 
Providing facilities, smart class rooms to plantation schools 
Upgrade Vocational Training  Centres to centres of excellence in 
each province and establishment of career guidance units in VT 
Centres 
TVET Career Platform Project 
Loan Facility for entrepreneurs to start business (SEPI) programme
Establishing an renewable Energy Training Hub 
Establishment of Faculty of Medicine at University of Sabaragamuwa 
Wayamba University Township Development 
Building Complex for the Faculty of Health Care Science, Eastern 
Construction of facilities including hostels, canteens, lecture halls 
and laboratories in universities
Government support to Gen Sri John Kotelawala Defence University
Payment of salaries and bearing other expenses related to universities 
-	 Rs.	 6.4  bn
-	 Rs.	
1.2  bn
-	 Rs.	 2.0  bn
-	 Rs.	 5.6  bn
-	 Rs.	
7.5  bn
– 	 Rs.	 88.5 bn
-	 Rs. 	362.0 bn
-	 Rs. 	 23.7 bn
-	 Rs. 	
9.1 bn
-	 Rs. 	 8.3 bn
-	 Rs. 	 0.8 bn
-	 Rs. 	0.98 bn
-	 Rs. 	
1.9 bn
-	 Rs.	
2.0 bn
-	 Rs.	
 0.7 bn
-	 Rs.	 0.3 bn
-	 Rs.	 0.26 bn
Rs. 135.8 bn
University 
Education
Rs. 21.0 bn
Vocational  Education

Citizens Budget 2026 · file page 14

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 14-
Welfare Programmes
Pre-School 
 School  Students 
Dhamma School 
Students 
University Students 
Vocational Education 
	 Rs 1.2  billion for Guru Abhimani- Allowances for Pre-School Teachers
	 Rs 3.5 billion for Morning Meal for Pre-school Children
	 Rs.11.5 billion for Subsidy for Schools, Vocational Education & 
Higher Education Season Tickets 
  Rs. 33.6 billion for School Nutritional Food Programme 
  Rs. 6.4 billion for School Uniforms
  Rs 2.5 billion for Shoes for Students in Difficult & Very Difficult 
Schools and Pirivena
  Rs 1.5 billion for Sanitary Napkins for Female Students
  Rs 15.0 billion for Printing of Text Books  
  Rs 1.9 billion for Scholarships (Year 5)
  Rs 0.15 billion for Nutritious Food for Sports Schools
  Rs. 2.5 billion – Suraksha Insurance for school children
 Rs. 9.0 billion for Purchasing school stationeries for school age 
children
	 Rs 0.20 billion for Printing of Dhamma School Text Books
	 Rs. 7.0 billion for Mahapola & Bursary for University Students 
	 Rs 3.0 billion for Loan Scheme for the students who are unable to 
get into the state universities
	 Rs 0.01 billion for Scholarships Education Programmes with other 
countries
	 Rs. 0.24 billion for Incentive for Lecturers & Stipend for Students in 
Vocational Education
	 Rs. 1.25 billion for Nipunatha Sisu Diriya scholarship 
	 Rs. 0.21 billion for Season Tickets of students in vocational training 
institutes

Citizens Budget 2026 · file page 15

Safe, Efficient, 
Eco-friendly 
and, Sustainable 
Transport Services

Citizens Budget 2026 · file page 16

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 16-
Rs. 341 bn
Capital - Rs. 332.1 bn
Recurrent - Rs. 8.5 bn
Roads
    - Express way Development    - Rs. 104.4 bn
 
Rs.36.8 bn
Capital - Rs. 25.8 bn
Recurrent - Rs. 11.0 bn
Transport 
Rs. 5.0 bn
Capital - Rs. 4.5 bn
Recurrent - Rs. 0.5 bn
Ports & Airports
Rs. 76.2 bn
Capital - Rs. 41.4  bn
Recurrent - Rs. 34.8 bn
Railway
 
Rs. 17.9 bn
Bridges
	
Rs. 477 bn 
for 
2026 
 Recurrent  
Rs. 54.8 bn
Capital
Rs. 421.7 bn 
	 Maintenance, Rehabilitation, and Improvement of around 12,500 km of national 
roads, around 12,800 km of provincial roads, around 100,000 km of rural roads island 
wide together with associated other road infrastructure. 
	 Widening and improvement of selected roads with heavy traffic congestion
	 Continuation of constructing around 50 km of central expressway 
	 Operation of around 320 trains daily, maintenance, rehabilitation and improvement of 
around 1,550 km of rail roads, signals, and rolling stock 
	 Completion of construction activities in Hingurakgoda Airport
	 Maintenance and strengthening  of SLTB bus fleet
What is going to do in next year?

Citizens Budget 2026 · file page 17

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 17-
What You Receive ? 
Rs. 341 bn 
Capital - Rs. 332.1 bn
Recurrent - Rs. 8.5 bn
Roads
Maintenance, rehabilitation, widening and improvement of 
national and provincial road network  
Widening and improvement of priority road sections and 
roundabouts of main roads to ease the traffic congestion  
Improvement of island wide rural road network together with 
partially completed roads of previous road development 
programmes  
Kadawatha - Meerigame expressway and Pothuhera - 
Rambukkana expressway  
Completion of Port Access Elevated Highway 
Paying compensation for lands acquired to expand roads  
Improvement of access roads to Kandy city including 
the construction of a new tunnel below railway line at 
Katugastota to ease the traffic congestion  
Conducting a feasibility study to connect Marine Drive with 
Port Access Highway, identification of alternative road to 
connect Puttalm with Mannar, Kaites Kareinagar Bridge, 
Ratnapura By pass , Paddirippu  Bridge, Kinniyadi Bridge, 
and Kokilai Bridge Kiran and Ponnudaikalchenai Bridges in 
Batticaloa
Enhancing road safety by adopting safety measures at risky 
road sections 
-	 Rs.	 50.4 bn
- 	 Rs.	 22.0 bn
- 	 Rs. 	62.0 bn
- 	 Rs.	 98.0 bn
- 	 Rs.	 12.5 bn
- 	 Rs.	
8.0 bn
- 	 Rs.	
2.6 bn
- 	 Rs.	
1.6 bn
- 	 Rs.	
4.2 bn
Expansion  of the electronic railway ticketing system (Pravesha) 
for convenient online ticketing 
Colombo railway station modernization to transform into safe, 
comfortable, and clean place
Maintenance and rehabilitation of railway engines, passenger 
coaches, rail roads and signalling system to continue daily 
train services 
Adding five new trains to railway fleet for daily train services 
Complete partially completed bridges, elephant bay and 
signalling system of Maho-Omanthei railway line to enhance 
safety and efficiency of train services along Northern Railway 
Line
Providing uninterrupted fuel supply for Railways to continue 
daily train services 
-	 Rs.	
1.4 bn
-	 Rs.	
0.8 bn
-	 Rs. 	 14.0 bn
-	 Rs.	
3.3 bn
-	 Rs.	
9.0 bn
-	 Rs.	 14.0  bn
Rs. 76.2 bn
Capital - Rs. 41.4 bn
Recurrent - Rs. 34.8 bn
Railway

Citizens Budget 2026 · file page 18

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 18-
Key Widening and Improvement Projects proposed for 2026
This map was prepared by   Planing Division of Road Development Authority

Citizens Budget 2026 · file page 19

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 19-
1.	
"Japan Friendship Road (0-2) (Model Road Project)"
2.	
"AC overlay of Colombo - Ratnapura - Wellawaya - 
Batticaloa 38+000 - 58+890 Km 
+ Awissawella by pass (0+000-0+910)"
3.	
Low level Road Ambathale to Kaduwela (8+500-13+000)
4.	
Pitakotte Thalawathugoda (0+000 -4+230)
5.	
Kotte - Bope 3+800 - 6+990 Km(5+500)
6.	
Malabe - Kaduwela 0+000 - 5+630km
7.	
"Colombo - Galle - Hambantota - Wellawaya 8.34 - 9.64 Km  
Council Avenue , Dehiwala 0+00-0+140 Km"
8.	
Pagoda - Pitakotte 0+ 000- 1+540 Km 
9.	
"1) Balance Work of Reconstruction of pedestrian overpass bridge 
across Marine drive at Bambalapitiya Railway Station 
2) Reconstruction of pedestrian overpass bridge across Marine 
drive at Wellawatta Railway Station"
10.	 Construction of Nawala Bridge Across Nawala Rajagiriya Canal
11.	 Ekala -Kotadeniyawa (3+000-9+000)
12.	 Ekala -Kotadeniyawa (21+000-27+000)
13.	 Widening and Improvements to Weliweriya Kirindiwela Road 
(6+000 - 12+860 Km)
14.	 Improvements to Udugampola Divlapitiya Road (0+000 - 13+000)
15.	 Balance work of Improvements to Wattala Hekitta Road (0+000-
1+500)
16.	 Balance work of Improvements to Jaela Intersection at Jaela Ekala 
Road and Peliyagoda Puttalam Road
17.	 Nittabuwa- Pasyala Road Project
18.	 Asphalt overlaying of Colombo Horana Road 24+950 - 28+180
19.	 "1)Asphalt overlaying on Colombo Galle Hambanthota Wellawaya 
road from 39+420 - 41+700  
2)Asphalt overlaying on Colombo Galle Hambanthota Wellawaya 
road from 45+460 - 50+970  
3)Asphalt overlaying on of Colombo Galle Hambanthota Wellawaya 
road from 51+250 - 52+370  
4)Asphalt overlaying on Colombo Galle Hambanthota Wellawaya 
road from 59+970 - 60+970 "
20.	 Balance work of Reconstruction of Bridge No 4/1 on Horawala 
Pelawatta Pitigala Road
21.	 Mahaiyawa Tunnel and Road Section (1+960- 2+213)
22.	 Willum Gopallawa mawatha Road construction (2+900 -3+740)
23.	 Willum Gopallawa mawatha Structures of Mada Ela (1+600 -3+740)
24.	 Widening and Improvement of Loius peiris Mawatha (0+000 - 
0+860)
25.	 Peradeniya Halloluwa Katugasthota (3-10)
26.	 Peradeniya Delthota Rikillgaskada 0-3
27.	 Upper Gampola Road ( 0-2.28)
28.	 "1)Peradeniya Delthota Rikillgaskada 28-42 
 2)Peradeniya Delthota Rikillgaskada 22.75-26"
29.	 4 lane construction Kandy Jaffna (70+650 -72+750)
30.	 Base Correction and A/C Overlay on Kandy - Jaffna Road [58+000 
- 63+000 km]
31.	 "1)A/C Overlay on Matale - Illukkumbura - Laggala Road [8+000 - 
10+000 km]  
 2)Base Correction and A/C Overlay on Matale - Illukkumbura - 
Laggala Road [18+000 - 26+000 km]"
32	 "1)Base Correction and A/C Overlay on Palapathwela - Galewela 
Road [23+000 - 27+000 km]  
 2)Base Correction and A/C Overlay on Palapathwela - Galewela 
Road [19+000 - 23+000 km]"
33.	 Base Correction and A/C Overlay on Wattegama - Kandenuwara - 
Wariyapola Road [4+810 - 11+000 km]
34.	 Palapathwela Galewela [0+000 - 2+400]
35.	 Palapathwela Galewela [28+750 - 30+750]
36.	 Norton - Maskeliya Road (CH 7+000 km - 13+000 km)Overlay
37.	 Carolina Norton Wanaraja Road (CH 3+000 km - 8+530 km)Overlay
38.	 Hatton - Maskeliya - Dellhouse Road (CH 4+000 km - 22+000 km) 
Overlay
39.	 Kandehandiya - Adikarigama - Randenigala - Loggal Oya Road ( 
7+000 - 11+000)
40.	 Colombo Galle Hambamtota Wellawaya Road (154+000 - 167.0)
41.	 Colombo Galle Hambamtota Wellawaya Road (173.0- 185.04 )
42.	 Matara Akuressa Road (4- 20.09)
43.	 Improvements of Galle Baddegama Road (B128) (2+000-2+306) - 
Sarenthukade Junction
44.	 Improvements of Galle Baddegama Road (B128) (4+200-4+500) - 
Kahaduwatta Junction
45.	 Asphalt overlay in Colombo - Galle - Hambantota - 
Wellawaya (273.88 - 281.9 km)
46.	 Asphalt overlay in Colombo - Galle - Hambantota - 
Wellawaya (242.94 -252.88 km)
47.	 Improvel Beliatta Kirinda Road (0+450 - 1+950 , 2+300-
3+900 , 5+900 - 6+100 , 8+500 - 8+700 km) 
48.	 Improvement of Dickwella - Beliatta Road (4+000 - 7+000 
km)
49.	 Improvement of Dammulla Weeraketiya Road ( 6+000 - 
10+100 km)
50.	 "ABC overlay , widening Shoulder and Asphalt laying work 
and drainage construction Jaffana -Ponnalai Pointpedro 
(12+090-14+600),(0+650-1+720)"
51.	 ABC overlay , widening Shoulder and Asphalt laying work 
and Culvert construction Chavakachcheri Pulloli (3+600-
7+500)
52.	 ABC overlay, Widening, Shoulder and Asphalt laying work for 
Avarankal - Thondaimanaaru road 0+000 - 6+000 km
53.	 ABC overlay , widening Shoulder and Asphalt laying work 
and 3 nos of Culvert construction for Thondaimanaaru - 
Vallai - Thunnalai Road 0+000 - 4+000
54.	 ABC overlay , widening Shoulder and Asphalt laying work 
Urumpirai Katpakapilaiyar Kovil Road (0+000-1+600)
55.	 Widening and Improvements of Depo Jucion at A009 Road 
(252km) - Stage 2
56.	 1)Widening Improvement to Murunkan - Chilawathurai Road 
(0+000 - 6+000km
57.	 Widening Improvement to Mankulam - Velankulankulam 
Road 31+900 - 39+900 km
58.	 Widening Improvement to Wellikulam - Mamaduwa Road ( 
0+000-8+100)
59.	 Wideing and Improvement of Kandy - Jaffna Road 176+000 
- 179 +000 km including Buid up drain with cover slabs
60.	 Widening & Improvement of Padiruppu- Vellaveli Road 
(1+430 - 2+850)
61.	 Colombo-Ratnapura-Wellawaya-Batticaloia Road (Ch: 
300+000 - 308 +000)km
62.	 Colombo-Ratnapura-Wellawaya-Batticaloia Road (Ch: 
312+000 - 320 +000)km
63.	 "1)Ampara-Iginiyagala Road  (Ch: 17 +000-21+710)km"
64	 "2)Ampara-Iginiyagala Road (Ch: 5+800 - 11+500)km"
65.	 Batticaloa - Tirikkondiadimadu - Trincomalee (108.5+114)
66.	 Katugastota - Kurunegala - Puttalam Road (16+320-19+175) 
- (AA010)
67.	 Improvement of Narammala - Dankotuwa Road (40+120 - 
42+120 km)
68.	 Improvement of Baththulu Oya - Udappuwa - Animunei Road 
(0+000 - 2+000 km)
69.	 W & I of Ganewalpola - Dachchihalmilewa Road (27+000 - 
31+000) km
70.	 W & I of Hurigaswewa - Kalankuttiya - Siyabalangamuwa - 
Wetakoluwatta Road (0+000 - 2+600) km
71.	 Maradankadawala Habarana Thirikkondiyamadu (25 - 31)
72.	 Maradankadawala Habarana Thirikkondiyamadu (57 - 61)
73.	 Bandarawela Liyangahalwela Poonagala (15-20)
74.	 Haputhale Dambethanna (2-7)
75.	 AC overlaying of Demodara Sprinvalley  Road (12+920 
-16+145)
76.	 Asphalt overlaying of Passara Higurukaduwa Pelwatta Road 
(9+000-15+000km)
77.	 Avissawella - Hatton - Nuwara Eliya Road (0+065- 6+650)
78.	 Nelum-Deniya Thunthota 4/2 Bridge
79.	 Warakapola By Pass
80.	 AC Overlay of Pelmadulla - Embilipitiya -Nonagama ( 15-30)
81.	 AC overlay of Colombo - Rathnapura - Wellawaya - 
Batticoloa Sections from (62+500 - 70+000)
82.	 AC overlay of Colombo - Rathnapura - Wellawaya - 
Batticoloa Sections from (74+000-86+000)
83.	 AC overlay of Colombo - Rathnapura - Wellawaya - 
Batticoloa Sections from(87+500-105+000)
84.	 W&I of Balangoa - Rassagala- Uwella (5 - 9.38)
85.	 AC overlay of Balangoda - Bowatta - Kalthota (16-23)
86.	 Reconstructions of Hulandawa Bridge 4/4 (2+300)

Citizens Budget 2026 · file page 20

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 20-
Rural bridges improvement
Balance work of Kohuwala and  Getambe flyovers
Rehabilitation of bridges along national roads 
-	 Rs. 	 2.5  bn
-	 Rs. 	
7.6 bn
-	 Rs. 	 4.0 bn
Rs. 17.9 bn
Bridges
	
Adding 600 new buses to SLTB for long distance services
Providing 307 engine kits to SLTB for repairing buses 
Development of Kandy Multimodal Transport Terminal to facilitate 
public transportation in Kandy 
SLTB bus fleet augmentation and institutional development
Purchase of number plates for new vehicle registration  
-	 Rs.	 3.6  bn
-	 Rs.	
2.0 bn
-	 Rs.	 10.7 bn
-	 Rs.	
2.0 bn
-	 Rs.	
1.0 bn
Rs. 36.8 bn
Capital - Rs. 25.8
Recurrent - Rs. 11.0 bn
Transport 
Key Welfare Programmes 
Contribution of Socially obligatory Bus Service 
(Sisusariya, Gamisariya, Nisisariya and late 
night bus service)
Operating around 1,500 SLTB buses along 
270,000 km per day on economically non-
profitable routes 
Rs. 3.3
bn
Rs. 4.0 
bn

Citizens Budget 2026 · file page 21

Support the 
Aspiration of 
Decent and 
Comfortable 
Living

Citizens Budget 2026 · file page 22

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 22-
Rs. 198 bn 
for 
2026 
Rs. 85.7 bn
Recurrent - Rs. 0.64 bn
Capital - Rs. 85.1 bn
Drinking Water Supply
Rs. 14.3 bn
Recurrent - Rs. 7.5 bn
Capital - Rs. 6.8 bn
Youth & Sports 
Rs. 40.3 bn
Capital - Rs. 40.3 bn
Rural Development 
Rs. 6.5 bn
Recurrent - Rs. 1.5 bn
Capital - Rs. 5.0 bn
Infrastructure Development 
in Urban Areas
Rs. 50.9 bn
Recurrent - Rs. 1.7 bn
Capital - Rs. 49.2 bn	
Housing Development
	 Providing around 1 million new pipe-borne water supply connections in the medium term 
	 Providing uninterrupted safe drinking pipe borne water through around 342 existing water 
supply schemes to 3.1 million houses, industries and other entities  
	 Ensuring sustainability of around 3,780 community water supply schemes islandwide 
	 Continuation of construction activities of around 20,000 housing units targeting low 
income people in 2026
  Development of rural infrastructure covering entire country
 Recurrent
Rs. 11.4  bn
Capital
Rs. 186.5 bn 
What is going to do in next year?

Citizens Budget 2026 · file page 23

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 23-
Rs. 85.7 bn
Recurrent - Rs. 0.64 bn
Capital - Rs. 85.1bn
Drinking Water Supply
Rs. 50.9 bn
Recurrent - Rs. 1.7 bn
Capital - Rs. 49.2 bn
Housing 
Key Expenditure Activities 
Providing pipe-borne water to Pathadumbara, Pujapitiya, 
Akurana, Harispattuwa, Gangawata Korale, and Thumpane 
DS Divisions (Kandy North & Pathadumbara Integrated Water 
Supply Project)  
Providing pipe-borne water to Jaffna and Kilinochchi and 
suburbs
Providing pipe-borne water to Padaviya, Kabethigollewa 
Kahatagasdigiliya, Horowpathana and Rambewa DS Divisions 
(Anuradhapura North Water Supply Project Phase 11) 
Increase the water supply efficiency in the Southern Area 
of Western Province, supply of safe drinking water and to 
improve the water supply networks in Dehiwala and Moratuwa 
(Kalu ganga Water Supply Expansion Project 1) 
Providing pipe-borne water supply facility to Gampaha, 
Atthanagalla, Minuwangoda, Thambuththegama, Aluthgama, 
Mathugama, Agalawatta,Alawwa, Polgahawela, Pothuhera 
Areas 
Providing pipe-borne water to Giribawa area 
Expansion of capacity of existing water supply schemes to 
provide new water connections island wide  
Ensuring sustainability of around 3,700 community water 
supply schemes  
Government support to National Water Supply and Drainage 
Board to ensure sustainable water supply to citizens 
 
-	 Rs.	
7.5 bn
-	 Rs.	
6.0 bn
-	 Rs.	
7.4 bn
-	 Rs.	
1.1 bn
-	 Rs.	 21.0 bn
-	 Rs.	
1.0 bn
-	 Rs.	 11.2 bn
-	 Rs.	 2.98 bn
-	 Rs.	 17.0 bn
 
Completion of another 3,000 housing units out of total 50,000 
housing units constructed to Relocate underserved settlements 
of the city of Colombo and its immediate suburbs - Stadiumgama, 
Furgution, 
Madampitiya, 
Appelawatta, 
Clombagemawatha, 
Arunodaya Mawatha 
Thamangema 
Thenak 
­Lassana 
Jiwithayak'' 
Housing 
grant 
programme for Poor and Low income homeless families to support to 
construct a house (Constructing 7,000 houses)
Providing affordable housing for low-income individuals across 
various suburbs in Colombo 
Constructing around 2,500 new Housing units for estate workers 
island wide
Completion of construction of around 2,445 housing units for 
resettling  Conflict Affected families  
Renovation of building common amenities and sewerage systems of 
old housing schemes constructed by HNDA
Resettlement of displaced people due to landslide threats and 
landslide (Completion of balance work of around 2272 houses)
-	 Rs.	 15.0  bn
-	 Rs.	 10.2  bn
-	 Rs.	
6.5 bn
-	 Rs.	 5.65 bn
-	 Rs.	
3.8 bn
-	 Rs.	 0.68 bn
-	 Rs. 	
1.0 bn

Citizens Budget 2026 · file page 24

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 24-
Urban infrastructure & township development in 100 cities 
(Siyak Nagara)  
Reconstruction of Jaffna Town Hall  
Development of strategic cities – Anuradhapura 
Development of strategic cities – Jaffna  
Sustainable Tourism Development Project 
Integrated Regional Development in Northern and Eastern 
Provinces  
-	 Rs.	 0.93 bn
-	 Rs.	 0.22 bn
-	 Rs.	 0.70 bn
-	 Rs.	 0.02 bn
-	 Rs.	 1.47 bn
-	 Rs. 	 0.3 bn
Development of basic infrastructure such as Rural Roads, medium 
and small size irrigation and potable water supply facilities in 
Northern, Eastern, North Central and Uva Provinces
Improving the socio-economic condition in the provinces in a manner 
that contributes towards reducing regional disparities (criteria based 
grants) 
Small size constructions, repairs, and road development activities, 
distribution of various goods & equipment and income generation 
projects island-wide (DCB and District Development Programme)
Provincial Sports complexes 
District Sports complexes 
Completion of Sports Stadium,Kalmunai 
 
Establishment of Sport Culture  
-	 Rs.	 8.0  bn
-	 Rs.	
7.0  bn
-	 Rs.	
4.5 bn	
-	 Rs.	 0.15 bn
-	 Rs.	 0.22 bn
-	 Rs.	 0.15 bn
-	 Rs.	
2.6 bn
Rs. 40.3 bn
Rural Development
Rs. 14.3 bn
Recurrent - Rs. 7.5 bn
Capital - Rs. 6.8 bn
Youth & Sports 
Rs. 6.5 bn
Recurrent - Rs. 1.5 bn
Capital - Rs. 5.0 bn
Infrastructure 
Development in 
Urban Areas
Key Welfare Programmes 
Continuing nutrition programme for National 
Pools 
Rs. 0.35
bn

Citizens Budget 2026 · file page 25

Productive, 
Modernized 
and Sustainable 
Agriculture 
to Enhance 
Country’s Food 
and Nutrient 
Security

Citizens Budget 2026 · file page 26

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 26-
Rs. 284 bn 
for 
2026 
Rs. 138.9 bn
Recurrent - Rs. 70.7 bn
Capital - Rs. 68.1 bn
Agriculture
Rs. 19.1 bn
Recurrent - Rs. 13.5 bn
Capital - Rs. 5.6 bn
Plantation
Rs. 13.0 bn
Recurrent - Rs. 8.5 bn
Capital - Rs. 4.5 bn
Land 
Rs. 91.7 bn
Recurrent - Rs. 12.3 bn
Capital - Rs. 79.4 bn
Irrigation
Rs. 9.2  bn
Recurrent - Rs. 1.0 bn
Capital - Rs. 8.2 bn
Livestock 
Rs. 11.8 bn
Recurrent - Rs. 4.1 bn
Capital - Rs. 7.7 bn
Fisheries
Key Expenditure Activities 
Improve agriculture productivity and diversification through 
the adoption of Climate Smart Agriculture practices and 
rehabilitation of irrigation systems, upgrade/rehabilitation of 
critical market infrastructure for common storage, processing, 
and marketing  in Anuradhapura, Polonnaruwa, Kurunegala, 
Puttalam, Kilinochchi, Mullaitivu, Trincomalee, Batticaloa, 
Ampara, Moneragala and Hambantota districts  
Facilitating rural smallholder Farmers Island wide for building 
the commercial partnerships, providing access to finance, 
improving technical know-how and financial literacy, introducing 
mechanization to agriculture 
Supporting smallholder farmers, strengthening their resilience 
to climate change, and promoting thriving agribusiness ventures 
in Puttalam, Kurunegala, Matale, Anuradhapura, Vavuniya, and 
Mannar districts  
Increasing productivity, market access, and climate resilience of 
agri-food producers in Jaffna, Kilinochchi, Mannar, Mullaitivu, 
Vavuniya, Anuradhapura, Polonnaruwa, Kurunegala, Puttalam, 
Trincomalee, Batticaloa, Ampara, Matale, Nuwara Eliya, 
Monaragala and Hambantota districts  
Purchasing and distribution of good quality seeds among 
farmers  
Maintenance, rehabilitation of agriculture and irrigation related 
infrastructure and support for agriculture under Provincial 
councils
Maintaining paddy buffer stock 
-	 Rs. 	 4.0 bn
-	 Rs. 	 1.67 bn
-	 Rs. 	 9.3 bn
-	 Rs. 	
1.5 bn
-	 Rs. 	
1.2 bn
-	 Rs. 	13.63 bn
-	 Rs. 	 10.0 bn
Rs. 138.9 bn
Recurrent - Rs. 70.7 bn
Capital - Rs. 68.1 bn
Agriculture
 Recurrent
Rs. 110.1   bn
Capital
Rs. 173.5 bn

Citizens Budget 2026 · file page 27

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 27-
Constructing around  27.7 km of North Central  Province Canal from 
Kongatiya to Madeththawa,  Completion of balance activities of canal 
from Moragahakanda to Kongatiya and canal from Madaththawa to 
Koduruwewa ,(Mahaweli Water Security Investment Progrmme ii) 
Rehabilitation of island wide irrigation infrastructure related to tanks, 
and dams, watershed management, watershed restoration (Integrated 
Watershed and Water Resources Management Project)  
Rehabilitation and establishment of village tanks, ponds, irrigation 
networks and restoration of forest and streamside protection and 
management along roads in Mathale, Kandy, Kurunegala and 
Anuradhapura District  
Maduru Oya Right Bank Development Project 
Carrying out operation and maintenance work of all the irrigation 
schemes under purview of irrigation department island wide  
Essential Rehabilitation in selected Major Irrigation Schemes island 
wide 
Construction of a reservoir and related infrastructure across Malwathu 
Oya 
Development of Minor Irrigation, Village Tank cascade Systems and 
Abandoned Paddy Lands  
Operation, rehabilitation, maintenance of major dams and reservoirs 
island wide, agricultural and rural road development, agricultural 
innovation and promotion of livelihood under Mahaweli Authority  
Kivul Oya Reservoir construction 
Ellewewa Reservoir  
-	
Rs. 	29.0 bn
-	
Rs. 	 5.1 bn
-	
Rs. 	 3.2 bn
-	
Rs. 	 1.0 bn
-	
Rs. 	 2.2 bn
-	
Rs.  	6.5 bn  
-	
Rs. 	 5.0 bn  
-	
Rs. 	 3.0 bn
  
-	
Rs. 	 3.6 bn  
-	
Rs. 	 2.5 bn
-	
Rs. 	 1.0 bn
Construction of Gandara Fishery Habour 
Development of  Myliddy Fishery Habour 
Provide supportive equipment for fishery industry 
Provide infrastructure facilities for small scale landing sites to 
increase livelihood through post harvest loss mitigation 
Renovation, rehabilitation and improvement of existing fishery 
infrastructure of 15 harbours
Rehabilitation of Valachcheni Harbour
Rehabilitation of Karainagar Boat Yard of Cey-Nor
-	
Rs. 	1.36  bn
-	
Rs. 0	.22  bn
-	
Rs. 	 0.9  bn
-	
Rs. 	 0.5  bn
-	
Rs. 	 0.3  bn
	
-	
Rs. 	0.35  bn
-	
Rs. 	0.35 bn
Rs. 91.7 bn
Recurrent - Rs. 12.3 bn
Capital - Rs. 79.4 bn
Irrigation
Rs. 11.8 bn
Recurrent - Rs. 4.1 bn
Capital - Rs. 7.7 bn
Fisheries
Rs. 9.2 bn
Recurrent - Rs. 1.0 bn
Capital - Rs. 8.2 bn
Livestock 
Development of Infrastructure required for goat farming and provide 
subsidised farm inputs for identified small & medium goat farms 
island wide
Development of Infrastructure required to animal husbandry, 
Promotion, Facilitation and exportation of animal products (eggs & 
chicken) and ornamental fish, and Provide subsidized farm inputs 
for identified small & medium farmers
Increase the numbers of good quality animals with high genetic 
potential  
Agriculture and Livestock Programme implemented by Sri Lanka 
Mahaweli Authority  
Improve productivity in dairy sector 
-	
Rs. 	0.20 bn
-	
Rs. 	 1.5  bn
-	
Rs. 	 1.1  bn
-	
Rs. 1.4  	 bn
-	
Rs. 	0.38 bn

Citizens Budget 2026 · file page 28

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 28-
Key Welfare Programmes 
Fertilizer Subsidy Programme For 
Chemical and Organic Fertilizer
Assisting the Farmers for 
Export Crop Development
Subsidy for rubber 
Farmer Pensions
Administration of a compulsory crop insurance 
scheme implemented free of charge for 
farmers under the state sponsorship for 6 
crops (Paddy, Maize, Big Onion, Chilli, Potato 
and Soybean) 
Assisting the Farmers for Revitalizing 
Ceylon Cinnamon Industry 
Re-cultivation of abandon 
matured rubber cultivations 
Rs. 36.9
bn
Rs. 1.1
bn
Rs. 0.5
bn
Rs. 5.55
bn
Rs. 3.0
bn
Rs. 0.25
bn
Rs. 0.29
bn
Development activities aimed at increasing production, 
marketing activities, improvement of productivity and 
working for the welfare of the tea small holders
Coconut production improvement & Northern Coconut 
triangle program  
-	
Rs. 1.0  bn
-	
Rs. 0.6  bn 
Rs. 19.1 bn
Recurrent - Rs. 13.5 bn
Capital - Rs. 5.6 bn
Plantation
Land Acquisition for State purposes
Bim Saviya Programme  
-	
Rs. 2.66  bn
-	
Rs. 0.73  bn
Rs. 13.0 bn
Recurrent - Rs. 8.5 bn
Capital - Rs. 4.5 bn
Land 
*  Of which Rs. 1.2 billion for paying compensation to paddy farmers for the damages caused to paddy cultivation 
due to flooding in Nilwala River
*

Citizens Budget 2026 · file page 29

No text on this page (image, chart or blank page).

Citizens Budget 2026 · file page 30

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 30-
Rs. 58 bn 
for 
2026
Rs. 2.0 bn
Coastal Protection
Rs. 7.4 bn
Wildlife Conservation
Rs. 4.0 bn
Storm Water  Management
Rs. 8.55 bn 
Environment Protection
Rs. 5.0 bn
Waste Management
Rs.17.24 bn	
Disaster Management
 Recurrent
Rs. 14.7  bn
Capital
Rs.  43.3  bn 
Rs. 13.7 bn
Wastewater
Key Expenditure Activities 
Implementation of Mitigation Projects to Minimize the Impact of Disasters 
Strengthening the Capacity of the Floods and Landslides Disaster 
Response Mechanism  
Rehabilitation and Reconstruction Activities of the Areas Affected by 
Floods and Landslides 
Landslide Investigations, Research and Development 
Immediate rectification measures for around 128 landslide sites
selected from villages, public places, major roads and upcountry
railway line
Early Warning Technology  
Formulation and Establishment of the National Building Code of Sri Lanka 
Doppler Weather Radar Systems  
Resettlement of Displaced people Due to Landslide threats and Landslide
-	 Rs. 	 0.50 bn
-	 Rs. 	 0.01 bn
 
-	 Rs. 	 0.60 bn
-	 Rs. 	 0.10 bn
-	 Rs. 	 7.28 bn
-	 Rs. 	 0.01 bn
-	 Rs. 	 0.07 bn
-	 Rs. 	 3.75 bn
-	 Rs. 	
3.0 bn
Rs. 17.2 bn
Disaster
Management
Rs. 7.4 bn
Wild-Life
Conservation 
Maintenance of around 5,600km of existing electric fences to mitigate 
Human-Elephant Conflict 
Construction of around 520 km Electric Fences  
Habitat Enrichment for Wildlife 
-	 Rs. 	 0.62 bn
-	 Rs. 	
1.0 bn
-	 Rs. 	 0.08 bn

Citizens Budget 2026 · file page 31

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 31-
Enhanced Transparency Framework for Agriculture, Forestry and other 
land use sectors  
Strengthening Resilience of Vulnerable Communities to Increased 
Impacts of Climate Change 
Integrated Management and Environmentally Sound Disposal of POPs 
(toxic chemicals that resist breaking down and can travel long distances 
through the environment) Pesticides in the Agriculture Sector and Mercury 
and Waste in the Healthcare Sector  
Expanding Forest Cover 
Management of Plastic Waste 
Conservation of lagoons and coastal belt
 
-	
Rs. 	0.10 bn
-	
Rs. 	 0.11 bn
-	
Rs. 	 0.11bn
-	
Rs. 	 1.0 bn
-	
Rs. 	0.06 bn
-	
Rs. 	 0.5 bn
 
Rs.8.55  bn 
Environment
Protection
Provide wastewater collection, treatment and disposal facilities to 
Kandy City and suburbs 
Waste Water Management System for Ella Township  
Rathmalana/Moratuwa/Ekala Waste Water Disposal Project ( Expansion 
of Pipe Borne Sewerage Coverage to Moraruwa & Ekala Areas) 
Expanding the wastewater coverage,  improve collection and treatment 
facilities of wastewater  in  Colombo Municipal Council, 
Improvement of Fecal Sludge 
* In addition, clinical waste and wastewater management   projects are 
also being implemented under housing (Rs. 0.68 billion) and health 
(Rs. 1.3 billion)  sectors
Weras Ganga, Oliyamulla and Kolonnawa  Storm Water Drainage & 
Environment Improvement Project  
Operation and Maintenance of storm water pumping station in Colombo 
and suburbs 
Maintenance and rehabilitation of existing canals, lakes, wetlands and 
walkways  
Drainage Design & implementation and Environment protection Activities 
-	 Rs. 	 2.11 bn
-	 Rs. 	0.30 bn
-	 Rs. 	 2.14 bn
-	 Rs. 	
9.1 bn
-	 Rs. 	 0.01 bn
Rs. 13.7 bn 
Wastewater
-	 Rs. 	 2.0 bn
-	 Rs.	 0.16 bn
-	 Rs. 	 0.97 bn
-	 Rs. 	 0.73 bn
Rs. 4.0 bn
Storm Water
Management 
Sanitary landfill in Aruwakkalu, Puttlam with its associated structures.
Kerawalapitiya waste management park 
Implementing solid waste disposal mechanism in Anuradhapura MC 
Area 
Support Solid Waste Management in Local Government Authorities 
Developing Sustainable Integrated Waste Management in Uva and 
Northern Provinces  
-	 Rs. 	 2.5  bn
-	 Rs. 	 0.21 bn
-	 Rs. 	0.53 bn
-	 Rs. 	0.90 bn
-	 Rs. 	0.80 bn
Rs. 5.0 bn
Waste 
Management
Providing relief for people affected by flood and drought 
Key Welfare Programmes 
Rs. 0.5
bn

Citizens Budget 2026 · file page 32

Commitment 
towards a 
Peaceful and Fair 
Society

Citizens Budget 2026 · file page 33

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 33-
Rs. 311 bn 
for 
2026 
225.6
66.93
14.9
1.22
2.9
Capital
Rs. bn
 
Total
Rs. bn
 
Recurrent
Rs. bn
23.8
20.23
5.92
0.05
2.4
201.7
46.7
8.97
1.17
0.5
Public Security 
Law and Order
Culture & Religion
Ensuring Democratic 
Media
 Recurrent
Rs. 259 bn
Capital 
Rs. 52 bn 
Development of court complexes including Gampaha, Kaduwela, 
Welimada, Galle, Ratnapura, Anuradhapura, Matale, Jaffna Polonnaruwa, 
Kilinochchi, Theldeniya, Pugoda and Kantale  
Three-year Plan for the Improvement of the Infrastructure Facilities in the 
Judicial Sector 
Maintenance of assets related to probation & child care services under the 
Provincial Councils 
House of Justice 
Running the prison system of the country by providing all facilities
	
- Construction of Kalutara, Watareka and Pallekele Prisons
	
- Enhancement of Sanitary facilities of detainees in prisons
Office for Reparations 
Living Allowance for Children under Institutional care, guardianship and 
Street Children 
-	 Rs.	
 1.9 bn
-	 Rs. 	
1.3 bn
-	 Rs. 	 2.3 bn
-	 Rs. 	 3.0 bn
-	 Rs. 	22.4 bn
-	 Rs. 	 0.74 bn
-	 Rs. 	0.35 bn
-	 Rs. 	
0.7 bn
-	 Rs. 	 0.75 bn
Rs. 66.93 bn 
Law and Order
Rs. 225.6 bn
Public Security
Enforcing criminal and traffic laws, maintain public order and safety, 
and keep the peace throughout the country through Police and 
Special Task Force 
Providing blank travel documents (blank passports) & related 
deliverables  
Establishing a robust, inclusive, and secure digital identity system 
Pre Printed Cards & Related activities of issuing Identity Cards 
-	 Rs. 	177.4 bn
-	 Rs. 	 4.6 bn 
-	 Rs. 	 2.0 bn
-	 Rs. 	
1.9 bn
What’s going to do in 2026 ?

Citizens Budget 2026 · file page 34

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 34-
Digitalization of Terrestrial Television Broadcasting Project – 	
Rs. 1.2  bn
Rs. 2.9 bn
Media
Rs. 14.89 bn
Culture and 
Religion
Sri Lankan day 
Maintaining museums and providing required services to citizens -
Archaeological Services 
Archives Management
National Art Festival and Cultural Promotions
Providing solar facilities for religious places 
Development of Rural Buddhist Temples  
Renovate John De Silva Theatre 
-	 Rs. 	0.35 bn
-	 Rs. 	 0.75 bn
-	 Rs. 	 2.6 bn
-	 Rs. 	
1.6 bn
-	 Rs. 	
0.1 bn
-	 Rs. 	
1.2 bn
-	 Rs. 	
0.1 bn
-	 Rs. 	 0.2 bn

Citizens Budget 2026 · file page 35

No text on this page (image, chart or blank page).

Citizens Budget 2026 · file page 36

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 36-
Rs. 407 bn 
for 
2026 
What’s going to do in 2026?
Key  Rehabilitations & Improvements
Rs.407 bn
Recurrent - Rs. 361.6  bn
Capital - Rs. 45.3 bn
Defence Headquarters Building construction at Akuregoda
Diets and ration for Tri-Forces  
Uniforms for Tri-Forces
Salaries and Wages of Tri-forces 
-	 Rs. 	
4.2 bn
-	 Rs. 	 75.5 bn
-	 Rs. 	
6.1  bn
-	 Rs. 	223.0 bn
Sri Lanka Navy 
Rs. 10.5 bn
Sri Lanka Army
Rs. 1.8 bn
Sri Lanka Airforce
Rs. 16.8 bn
Key Welfare Programmes 
Ranaviru Mapiya Rakawarana Allowance 
Uplifting Wellbeing of War Heroes and their Families 
Rs. 1.70
bn
Rs. 0.02 
bn
 Recurrent
Rs. 361.6  bn
Capital
Rs. 45.3  bn

Citizens Budget 2026 · file page 37

Economic 
Services and 
Entrepreneurship

Citizens Budget 2026 · file page 38

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 38-
Rs. 3.0 bn
Trade 
Facilitation
Rs. 124 bn 
for 
2026 
Capital
Rs. bn
 
Recurrent
Rs. bn
Facilitating for investments 
and industries
SME Development 
Labor
Postal Services 
Tourism Facilitation
Trade  Facilitation
 
22.4
55.9
8.0
29.5
5.1
3.0
15.6
53.64
1.2
1.8
3.1
1.0
6.7
2.3
6.8
27.7
2.0
1.99
 Recurrent
Rs. 47.72 bn
Capital
Rs. 76.52 bn 
Total
Rs. bn  
Providing postal services island wide
-	
Rs. 29.5 bn
Rs. 29.5 bn
Postal Services  
Producer corporative society system for supply chain 
management  
Renovation of Existing Paddy Stores  
Ensuring protection of consumers 
-	
Rs. 	
0.1 bn
-	
Rs. 	 0.2 bn
-	
Rs. 	0.62 bn
Tourism promotion / City Branding  
Tourism Infrastructure Development in Jaffna District 
Sunset View Park ,Arugambay 
 Development of Tourism Infrastructure in Local Authority Areas 
Operation and management of Zoological and botanical gardens 
Development of Tourist Attractions  
-	
Rs. 	
1.8 bn
-	
Rs. 	 0.13 bn
-	
Rs. 	 0.07 bn
-	
Rs. 	 0.2 bn
-	
Rs. 	 2.3  bn
-	
Rs. 	 0.8  bn
Rs. 5.1 bn
Tourism
Facilitation
Rs. 22.4 bn
Industry
Promotion
Improvement of infrastructure facilities of 33 existing Industrial Estates 
Provision of utility facilities including pipe-borne water and sewerage to 
the border of the Colombo Port City
Commercialization of research findings 
Creating an Investment Friendly Environment 
Establishment of New Economic Zones to Attract Foreign Investors 
-	
Rs. 	 5.0 bn
-	
Rs. 	
1.3 bn
-	
Rs. 	
1.2 bn
-	
Rs. 	 2.0  bn
-	
Rs. 	
1.4 bn

Citizens Budget 2026 · file page 39

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 39-
Around 
Rs. 60 
Bn
	
	
	
	
	
	
	
Are you an 
Entrepreneur, or
think of 
a business, ?
For Whom	
-	
All the sectors except trading, 
	
	
leasing and renting businesses
For What 	
-	
Investment/ working capital/ 	 	
	
	
combined loans
Loan Amount 	
- 	
Maximum Rs. 50.0 million 
Implementing 	
-	
through 13 Licensed Banks 
	
	
(State and Private)
Interest rate &	
- 	
6% maximum interest with 	
	
Repayment period		
maximum 10  years repayment 	
	
	
period including maximum  2 	 	
	
	
years grace period 
Contact point 	
– 	
Relevant banks 
For Whom	
-	
Micro and small-scale Farmers
For What 	
-	
for fulfil low cost working capital 	
	
	
requirements of micro and small-	
	
	
scale farmers for cultivating short-	
	
	
term crops (34 crops) and their 		
	
	
nurseries, home gardening and 		
	
	
warehouse financing. 
Loan Amount	
-	
Maximum Rs. 3 million
Interest	
-	
5% subsidy for loan interest 	
	
	
	
(effective rate is 10%) 
Implementing 	
-	
Through Licensed Banks (13 banks)
Contact point 	
- 	 Relevant Banks
Rs. 5.9 bn 
for 
2026
Rs. 1.8 bn 
for 
2026
Enhancing Small and Medium sized Enterprises 
Finance Project (SMELO2) - Revolving
New Comprehensive Rural Credit Scheme
The government 
is ready 
to support you

Citizens Budget 2026 · file page 40

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 40-
Rs. 10 bn 
for 
2026
Rs. 0.8 mn 
for 
2026
Extended Disaster Relief Loan Scheme
Farming System Sustainablity Programme (FSSP) 
For Whom	
-	 All disaster affected enterprises 	
For What	
	 -	 Rebuild the capacity of 'Cyclone Ditwa' affected business sector 
Loan Amount	
-	 Maximum Rs. 25 Mn (Micro Rs. 250,000, Small Rs. 1,000,000)   
	
	
Medium & Large Rs. 25,000,000)
Interest rate 	
– 	 3 %
Implementation	
-	 Through 15 Licensed Banks
Contact Point 	
–	 Grama Niladari of the relevant area. 
	
For Whom	
-	 Individual or MSMEs engaged in agriculture related activities 	
For What	
	 -	 Strengthen agri businesses and related activities 
Loan Amount	
-	 Maximum Rs. 5 Mn 
Interest rate 	
– 	 maximum 5 %
Implementation	
-	 Through 15 Licensed Banks
Contact Point 	
–	 Filed officers of Agriculture stationed in Divisional Level.

Citizens Budget 2026 · file page 41

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 41-
	
	
	
	
For Whom	
-	
Micro, Small, and Medium 	
	
	
	
Enterprises
For What 	
-	
Development of Micro, Small, and 	
	
	
Medium Enterprise Sector
Benefits Receive 	 -	
introducing innovative financing 	
	
	
mechanisms, rating systems, 		
	
	
targeted credit lines for MSMEs, 	
	
	
and a Venture Capital Fund.
 
For Whom	
-	
Small- and medium- scale 	
	
	
	
enterprises (SMEs), cooperatives,
	
	
and agri-startups engaged in 	
	
	
	
agriculture value chains.
For What 	
-	
To provide accessible, affordable,
	
	
and targeted financial products 	 	
	
	
enhanced productivity, value 	
	
	
	
addition, and market access while 	
	
	
integrating climate resilience and 	
	
	
inclusivity in agriculture sector 
Rs. 25 bn 
for 
2026
Rs. 7.7 bn 
for 
2026
Rs 6.2 bn 
for 2026
Stimulating Loan Scheme for Re- energize the Micro, Small, and Medium 
Enterprises (MSME) Sector
SME Sector Development Programme 
(Building a Strong and Inclusive Environment for 
MSMEs)
Agriculture Value Chain Financing and
Commercialization Sector Development Project
For Whom 	
-	 Micro, Small, and Medium Enterprises	
For What 	
-	 Strengthening the Existing MSMEs and Start-ups in manufacturing, 	
	 construction, export oriented, apparel, agriculture and agro base  	
	 industries sectors and any MSMEs that are women led
Investment and working capital loans
•	 Performing Loan Category (MSMEs with no issues on loan repayment)
For investment and working capital loans 5% maximum interest with 10 years repayment 
period
•	 Non-performing Category – (MSMEs with issues on loan repayment)
Intrest and 	
	
- For investment and  working capital loans 5% maximum interest rate 	
Repayment 	
	
   with maximum 10 years repayment period 
Implementation	 -  Through Licensed Banks (State and Private)
Contact point 		
-  Field Officers of Ministry of Industry & Enterprises Developments 	
	
	
    stationed in Divisional  Secretariat  Offices

Citizens Budget 2026 · file page 42

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 42-
Rs. 0.75 
bn for 
2026
Rs. 0.8 bn 
for 
2026
Rs. 0.30 
bn for 
2026
Youth Entrepreneurs Development Programme in 
Agriculture Sector 
Individual Loan Scheme for Youth
Self-Employment Promotion Initiative Loan Scheme 
For whom	
-	 Youth Entrepreneurs in Agriculture Sector 	
	
	
with the age limit of 18 -50 years
For What 	
-	 Enhance entrepreneurship in Agriculture 	
	
	
and agriculture related industries 
Loan Amount	 -	 Rs. 5 million
Interest rate  	 -	 4% with 5 years repayment period 	 	
& repayment	 	
including  6 months grace period
Implementing 	-	 through Bank of Ceylon, Peoples Bank and 	
	
	
Regional Development Banks 
Contact Point 	– 	 Divisional Secretariat Offices
For whom	
-	 Youth Entrepreneurs connected to 
	
	
Agriculture value chain with the age limit of 
	
	
18 -50 years
For What	
-	 Any agribusiness project connected to 
	
	
agriculture value chain
Loan Amount	 -	 Maximum Rs. 2 million
Interest rate & 
repayment	
-	 6.5 % with 5 years repayment period
Implementing	-	 through commercial Banks 
Contact Point 	-	 Ministry of Agriculture
For whom	
-  	 Trained Youths at the Vocational Training 	
Institutions (who has NVQ certificate 
and  also the certificate issued after 
participating 8 days programme on 
“Entrepreneurship Development”)  
For What 	
- 	 to start any self-employment initiative 
Loan Amount 	 -	
Rs. 1.0 million
Interest rate & 
repayment 	
-	
7% interest and 5 years repayment period 
Implementing 	-	
through commercial Banks 
Contact Point 	- 	 Vocational Training Institutes/ Banks
Rs. 0.25 bn 
for 
2026
Pledge Loan Scheme for Small and Medium Scale 
Paddy Millers and Cooperatives Societies to Purchase 
Paddy 
For whom 	
-	 Small and Medium Scale Paddy Millers 
	
	
and Corporative Societies subject to the 	
	
	
maximum  milling capacity of 25 metric 
	
	
tons per day
For What 	
-	 to purchase paddy 
Loan Amount 	 -	 Rs. 50 million per borrower
Implementing	-	 through Licensed Banks 
Repayment	
-	 6 months maximum
Interest	
-	 4 % subsidy for interest
Contact Point	 -	 Relevant  banks

Citizens Budget 2026 · file page 43

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 43-
Rs 0.44 
bn 
for 
2026
Women Empowerment through Entrepreneurship Development  
For whom	
-	 Women in low-income families, who are 	
	
	
member of Women Action Societies and 
	
	
have obtained a training on entrepreneurship 
	
	
provided by those societies   
For What	
-	 to start any self-employment initiative 
Loan Amount	 -	 Rs. 100,000 
Interest rate & 
repayment	
-	 totally a grant 
Contact Point 	-	 Women Development Officers in Divisional 	
	
	
Secretariats Offices
Social Protection Project -	
Rs. 1.1 bn
Empowering Aswesuma Beneficiaries – 	
Rs. 3.7 bn
With the view of empowering Aswasuma Beneficiaries, 
preparation of family development plan for selected 
Aswasuma families and provide vocational trainings, support 
to business plan development and financial support to start 
a business
Other Supporting Schemes
 
Support for Low Income Disable Person 
	
- Rs. 0.1 bn	
Developing livelihoods in villages and the 
necessary 
infrastructure 
for 
that 
purpose 
Integrated Rural Development Programme 
- Rs. 0.25 bn
National Credit Guarantee Institution Limited
This institution has been established to provide partial credit guarantees to the Shareholder Financial 
Institutions to encourage them to provide uncollateralized lending to the MSMEs based on the viability of 
the projects

Citizens Budget 2026 · file page 44

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Citizens Budget 2026 · file page 45

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 45-
Rs. 23 bn 
for 
2026 
Plan for 2026
Rs. 23 bn
Recurrent - Rs. 1.1 bn
Capital - Rs. 22.0 bn
Enhancing the capacity of national transmission and 
distribution network located in Greater Colombo and its 
surrounding area and to reduce transmission losses by 
constructing or upgrading transmission lines, sub-stations 
and distribution lines 
Producing energy from waste 
Kerawalapitiya – Colombo Port underground transmission 
line development
New Habarana Kappalthurai  Transmission Development 
Project
Sampur Kappalthurai Transmission Development Projects 
Installation of 75MWA Synchronous Condenser Unit at New 
Habarana 
Rooftop Solar Aggregation and Vertual Net Metering Project  
Obtaining Grant Support for Renewable Energy Admission 
and Energy Efficiency Enhancement Project 
Establishment of Secretariat for Power Sector Reforms 
-	
Rs. 	
7.6 bn
-	
Rs. 	
1.1 bn
-	
Rs. 	 5.4 bn
-	
Rs. 	 1.94 bn
-	
Rs. 	
1.5 bn
-	
Rs. 	
1.8 bn
-	
Rs. 	
1.0 bn
-	
Rs. 	0.60 bn
-	
Rs. 	 0.07 bn
 
Promotion of renewable energy usage
 
Grid expantion and modernization to reduce energy losses
 
Reducing dependence on high cost energy sources
 
Enhance private sector participation and investments
 Recurrent
Rs. 1.1  bn
Capital
Rs. 22 bn 
Renewable Projects implemented by other institutions
Installation of Solar (PV) System at the Southern Naval Area
Installation of Solar Plant at Block No 03, DHQC Project, Akuregoda 
Solar Facilitation for Religious Places
Project for the Stabilization of Power Supply Using Renewable Energy at Hospitals 
-	
Rs. 	0.15 bn
-	
Rs. 	0.12 bn
-	
Rs. 	 1.2 bn
-	
Rs. 	 1.0 bn

Citizens Budget 2026 · file page 46

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Citizens Budget 2026 · file page 47

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 47-
195.2
6.65
18.13
141.5
20.56
6.88
10.60
 
Capital 
Rs. bn
Total
 Rs. bn
Recurrent 
Rs. bn
Public Service Delivery 
through Provincial Councils 
District and Divisional 
Secretariats 
Free and Fair Elections 
Executive and legislative
Financial Affairs
Foreign Affairs 
 
Government Printing and 
Publication Activities
Digitalizing Government 
Services
57.8
0.15
2.57
73
0.89
2.26
7.0
137.4
6.49
15.56
68.5
19.67
4.61
3.56
Rs. 400  bn 
for 
2026 
* Excluded provisions for 
Budget Proposals
 Recurrent
Rs. 255.9  bn
Capital
Rs. 143.8  bn 
Rs. 82.41 bn
Public Service Delivery 
through Provincial Councils 
District and Divisional 
Secretariats 
Peovision of services through  Division & District Secretariats 
e-Grama Niladari Project to Enhance the ICT usage among 
Grass Root level 
 
Maintenance, rehabilitation and improvements of Division & 
District Secretariats 
-	 Rs. 53.43	bn
-	 Rs. 0.59	 bn
-	 Rs.  8.74	 bn
Key Expenditure Activities

Citizens Budget 2026 · file page 48

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 48-
Rs. 195.2 bn 
Public Service 
Delivery through 
Provincial 
Councils, Districts 
and Divisional 
Secretariat
Strengthening Local Government Authorities 
Upgrading infrastructure and income generation in Local Authorities   
Maintenance and rehabilitation related activities implemented by 
provincial councils (excluding roads, health, education and agriculture 
sectors) 
Implementation of Multisectoral Grant Assistance for Eastern Province 
Tourism for Heritage, Resiliance, Inclusion and Value Driven Employment 
Integrated Regional Development Program 
-	
Rs. 	 1.20 bn
-	
Rs. 	 1.35 bn
-	
Rs. 	26.9 bn
-	
Rs. 	 1.15 bn
-	
Rs. 	0.30 bn
-	
Rs. 	0.20 bn
Rs. 141.5 bn 
Financial Affairs
Rs. 10.6 bn 
Digitalization 
New Container Scanning Project 
Financial Sector Safety Net Strengthening Project (FSSNP)
Providing  a single entry point for traders to submit documents and data 
for cross-border trade
Implementing e-procurement methods in government institutions
Information and communication technology project
Digital Economy Advancement  
Development Initiatives, Coordination and Monitoring 
Sri Lanka Public Financial Management Strengthening Project 
-	
Rs. 	 4.76 bn
-	
Rs. 	 3.18 bn
-	
Rs. 	 2.5 bn
-	
Rs. 	 0.4 bn
-	
Rs. 	 2.2 bn
-	
Rs.	 5.39 bn
-	
Rs. 	 0.78 bn
-	
Rs. 	 0.37 bn
Rs. 20.56 bn
Foreign Affairs 
Overseas missions activities  
-	
Rs. 17.71 bn
Rs. 6.65 bn 
Free and  Fair Elections 
Voters registration & awareness programmes
Conducting elections
-	
Rs. 	0.29 bn
-	
Rs. 	 5.0 bn
Rs. 18.13 bn
Executive and Legislative  
Clean Sri Lanka - to reposition the nationwide efforts of 
environmental, social and governance initiatives through 
introducing change, integration and collaboration
Rs. 6.5 bn

Citizens Budget 2026 · file page 49

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 49-
Public Sector Carder by Key Professions
 
*
*It consists of non-categorized public sector employees

Citizens Budget 2026 · file page 50

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 50-
Public Sector Salaries
Year
Public Sector Salary and Pension
Rs. Billion

Citizens Budget 2026 · file page 51

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Citizens Budget 2026 · file page 52

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 52-
Aswasuma Programme – Rs. 231 bn*
Cash Grant for Low Income Families 	
– 	
Rs. 	151.3 bn
Support for Low Income Disable Persons 	
– 	
Rs. 	 19.0  bn 
Financial Support for Elderly (Over 70 years of age) 	
– 	
Rs. 	 54.3 bn
Financial Support for Elderly (Over 100 years of age) 	
– 	
Rs. 	 0.03 bn
Financial Support for Kidney Patients	
– 	
Rs.	
6.4 bn
Pension And Gratuity – Rs. 565.0  bn
Pension for Public Officers (745,000 pensioners) 	
– 	
Rs. 	372.0  bn 
Pension for Widows, Widowers and Orphans of 
Public Officers	
– 	
Rs. 	78.0  bn 
Gratuity Payments 	
– 	
Rs. 	 60.0 bn
Service Compensation for Death and Injured Soldiers	
– 	
Rs. 	 55.0 bn
	
Other Welfare – Rs. 10.65 bn 
Interest Difference on Senior Citizen’s  Bank Accounts 	
– 	
Rs. 	 10.0 bn 
Railway Warrants for Pensioners 	
– 	
Rs. 	 0.65 bn 
 
Rs. 838 bn 
for 
2026
 Recurrent
Rs. 835.4 bn
Capital
Rs. 2.55   bn 
* excluding financial assistant to purchasing school stationeries.
Key Expenditure Activities 
Rs. 0.35 bn
Rs. 0.50 bn
Rs. 0.085 bn
Rs. 0.2 bn
Development of 
Daycare Centers
Providing grants and 
training to vulnerable 
families receiving 
benefits under the 
Aswesuma welfare 
scheme 
Identification system 
for disable people 
Promoting resilience 
and Opportunity for 
Inclusive Recovery 
Programme through 
education and 
skills development, 
fostering a supportive 
environment for private 
sector and SME growth

Citizens Budget 2026 · file page 53

No text on this page (image, chart or blank page).

Citizens Budget 2026 · file page 54

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 54-
Rs. 33 bn 
for 
2026
Digitalization is 
the 
process 
of 
leveraging 
digital 
technologies to transform business processes, services, or 
governance, improving efficiency, access, and innovation. 
The government’s digitalization expenditure for the year 
2026 is around Rs. 33 billion and it covers mainly the 
following aspects. 
²	 Providing digital infrastructure to government institutions 
²	 Data and information management
²	 Digital platforms and applications
²	 Connectivity and communication
²	 Security and privacy
²	 Improving human and organizational capabilities
²	 Governance and policy
Coordination of Sri Lanka Unique 
Digital Identity Project (SL-UDI) – 
Digitalization of Divisional Secretariats 
e Grama Niladari Project to Enhance the 
ICT usage among Grass Root level 
Rolling out of Treasury’s revenue 
and expenditure management and 
reporting system to  expenditure units 
Revenue Administration Management 
Information System of Inland Revenue 
Department 
Digitalization initiatives of Immigration 
and Emigration Department
Digitalization initiatives of Police 
Service 
Data Protection Authority 
Accelerating Sri Lanka's Digital 
Industry and Innovation Ecosystem 
(Digi Industry )
Digital Revenue Economy Enablement 
and Acceleration Initiative (DigiRevSL)  
Advancing Digital Skills and Capacity 
Building in Sri Lanka (DigiCapBuild)  
DEA Strengthen and Inter Ministerial 
Coordination Platform  
Rs. 2.1 bn
Rs. 0.6 bn
Rs. 0.59 bn
Rs. 0.6 bn
Rs. 3.2 bn
Rs. 1.6 bn
Rs. 1.6 bn
Rs. 0.07 bn
Rs. 0.75 bn
Rs. 0.65 bn
Rs. 0.5 bn
Rs. 0.95 bn
A Digital 
State – Digital 
Transformation

Citizens Budget 2026 · file page 55

Public expenditure in Research and Development 
(R&D) is critical for Sri Lanka’s economic, social, 
and environmental progress—especially as the 
country seeks to transition to a knowledge-
based, innovation-driven one.
This is also a cross-cutting initiative and spreads in 
different sectors of the economy. Different public 
institutions conduct various initiatives respective 
to their sectors. In 2026 Budget Estimates, around 
Rs. 20 billion has been allocated for research and 
development activities under different Ministries 
and Agencies. The following are the key research 
initiatives for the year 2026.
Research & 
Development- 
Rs. 20 bn

Citizens Budget 2026 · file page 56

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 56-
1. 	 Research initiatives in Agriculture Sector 
a. 	 Economic Census on Agriculture
b. 	 National Seed Production and Purchasing Programme  
c. 	 New technology and climate resilient practices 
d. 	 Accelerated Seed Farms Development Programme  
e. 	 Development of new hybrids  open pollinated chilli, maize, 
onion vegetables varieties production of seeds 
f. 	
Implementation of National Agricultural Research Plan 
g. 	 Facilitating research institutions in agriculture, fisheries, 
plantation and livestock 
h. 	 Improvement of Productivity in Dairy Sector
i. 	
Increase the Liquid milk production through enhanced 
breeding  
j. 	
Establishment of Animal Breed Farms
k. 	 Implementation of Livestock Research
2. 	 Research initiatives in Economic Services Sector 
a. 	 Strengthening of the National Quality Infrastructure (NQI) 
system  
b. 	 Support to research institutes related to industrial 
development 
3. 	 Research initiatives in Education Sector
a. 	 Support to research institutes related to science and 
technology 
4. 	 Research initiatives in Health Sector 
a. 	 Research on health  
b. 	 Research on indigenous medicine  
b. 	 Demographic and Health Survey – 2026
5. 	 Research on public services 
a. 	 Economic Census on non -Agriculture sector 
Rs. 	
9.7 bn
Rs. 	
1.1 bn
Rs. 	
1.2 bn
Rs. 	
0.4 bn
Rs. 	
0.5 bn
Rs. 	 0.17 bn
Rs. 	
0.1 bn
Rs. 	
3.9 bn
Rs. 	 0.35 bn
Rs. 	
0.1 bn
Rs. 	
0.1 bn
Rs. 	0.085 bn
Rs. 	 1.98 bn
Rs. 	 0.37 bn
Rs. 	
1.6 bn
Rs. 	
5.6 bn
Rs. 	
5.2 bn
Rs. 	 2.27 bn
Rs. 	
1.1 bn
Rs. 	 0.65 bn
Rs. 	 0.57 bn
Rs. 	
0.8 bn
Rs. 	
0.8 bn
Key Expenditure Items

Citizens Budget 2026 · file page 57

Responsiveness 
to Climate 
Change
What is climate change and climate 
change impact? 
Climate change is the long-term change in temperature 
and weather patterns. The impacts of climate change 
are the effects that global warming and changing 
weather patterns have on Earth's natural systems and 
human societies. 
How will climate change affect Sri Lanka?
As a tropical island nation, Sri Lanka is highly vulnerable 
to climate change and consistently ranks among the 
top countries at risk from extreme weather events. 
1.	
Prolonged droughts 
2.	
Natural disasters such as flash floods/ landslides 
3.	
Rising sea levels, coastal erosion and storm 
surges 
4.	 Rising temperatures and unpredictable rainfall
5.	
Extreme heat

Citizens Budget 2026 · file page 58

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 58-
How Government Support to Mitigate or Adopt Climate Impacts 
The projects and programs are scattered in different institutions. Most of these climate change 
mitigation and adaptation initiatives are embedded into projects and programmes during 
planning stage. Hence, without a proper tagging most of these initiatives and expenditure 
related to climate change cannot be segregated easily. However, following aspects can be 
directly identified. 
Adaptation - Activities that reduce the current risk or expected impacts of climate change, 
building resilience to the negative impacts of climate change
1.	
Storm water management, and improved drainage systems
2.	
Enhances irrigation and water supply infrastructure
3.	
Protection of coastal communities from erosion, sea-level rise, and storm surges
4.	
Early warning systems 
5.	
Provides sustainable water sources to drought-prone villages
6.	
Introducing climate smart agriculture practices
7.	
Include elevated road designs
8.	
Resettlement of vulnerable families to climate disasters in safe places 
Mitigation - Activities that reduce greenhouse gas emissions or increase carbon sinks
1.	
Promoting installation of solar panels on households, religious places, and public 
buildings
2.	
Development of wind and solar power plants across the country
3.	
Restoration of degraded forests and mangrove ecosystems
Relief – This refers to short-term emergency support provided to communities affected by 
climate-induced disasters. 
1.	
Evacuation centers, rescue operations during floods or landslides
2.	
Distribution of rations, clean water supplies
3.	
Mobile medical units, medicines, emergency clinics
4.	
Tents, temporary housing for displaced families
5.	
Repairing electricity, water, and sanitation infrastructure

Citizens Budget 2026 · file page 59

Drug 
Free 
Nation
Drug abuse is one of the most serious social and 
health problems in Sri Lanka today. It affects 
individuals, families, and communities, leading to 
rising crime, health issues, and social instability. The 
Government of Sri Lanka has therefore established 
a comprehensive national strategy for drug control.

Citizens Budget 2026 · file page 60

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 60-
1.	
Prevention and Education
	
Prevention aims to reduce the demand for drugs by raising awareness among youth and communities. 
This includes school- based and community –based programs and Mass media campaigns. 
2.	
Treatment and Rehabilitation
	
The treatment and rehabilitation centers that provide detoxification and counselling services and 
vocational training and reintegration programmes for drug addicted people. There are several 
treatment centers throughout the country including Thalangama, Kandy, Galle, Nittabuwa, which 
are controlled by the National Dangerous Drugs Control Board. 
	
In addition the National Dangerous Drugs Control Board has been established of Designated and 
Private Treatment Centers as a division in order to expand treatment programmes and there are 
around 13 designated treatment centers under this division. These centers includes Pallekale, 
Pallansena, Watareka, Kandewatta, Thaldena, Meethirigala , Weeravila, Abepussa, Anuradapura, 
and Kandakadu.
3.	
Law Enforcement and Supply Reduction
	
The government works to control the supply of illegal drugs by strict law enforcement through Sri 
Lanka Police, Sri Lanka Customs and Coast Guard
	
The expenditure for the above initiatives is scattered among different Ministries, Departments 
and other public institutions including Sri Lanka Police, National Dangerous Drugs Control Board, 
Rehabilitation Beauro, Department of Prisons, and Department of Community Based Corrections. 
However, in most of these institutions, drug prevention is one of the key duties and it is difficult 
to segregate the exact expenditure for the above initiatives. The cost of such directly identifiable 
institutions for the year 2026 is  Rs. 1,800 million for the above initiative. 
Major Components of the National Drug Control Programme

Citizens Budget 2026 · file page 61

Maintenance, 
Rehabilitation 
and 
Improvement of 
Infrastructure
Maintenance, rehabilitation and improvement of infrastructure 
mean the ongoing process of preserving, restoring, 
and increasing the functionality and lifespan of existing 
infrastructure assets such as roads, bridges, buildings, tanks, 
and other utilities through regular upkeep, targeted repairs, and 
upgrades to address deterioration and improve performance 
over time. It is highly important to enhance economic growth, 
safety and quality of life. Annually, the Government allocates 
significant amount of money to different Ministries and 
institutions for the above purpose. 
In 2026, Budget Estimates, around Rs. 292 billion has been 
allocated to the above purpose. The breakdown of this 
allocation by key sectors is as follows.
Health Sector 
a	
Hospital buildings, equipment 
maintenance, rehabilitation and 
improvement 
Education 
a.	 School education related buildings, 
equipment maintenance, 
rehabilitation and improvement
b.	 Vocational education related building 
and equipment maintenance and 
rehabilitation 
Transport 
a.	 Road and bridges maintenance, 
rehabilitation, widening and 
improvement 
b.	 Railway locomotives, passenger 
coaches, rail roads, signerling 
systems maintenance and 
rehabilitation  
Agriculture and Irrigation 
a.	 Rehabilitation of small, medium and 
large-scale irrigation systems – 
b.	 Rehabilitation of agriculture, 
irrigation, fisheries and livestock 
related infrastructure by Provincial 
Councils
Peaceful and fair society 
a.	 Rehabilitation and maintenance of 
police stations, police vehicles and 
other infrastructure under the police 
Department 
b.	 Maintenance and rehabilitation of 
prison related assets  
National Security (Rehabilitation 
and maintenance of 
Tri-forces related assets)  
Public Services 
a.	 Rehabilitation and maintenance of 
district and divisional secretariats
b.	 Rehabilitation and maintenance of 
assets under provincial councils’ 
purview (except roads, health, 
education, agriculture and irrigation)  
Rs.	 38.7 bn
Rs.	
32.6  bn
	
Rs.	 33.7 bn
Rs.	
30.6 bn
Rs.	
2.3 bn
Rs.	94.0 bn
Rs.	
79.3 bn
Rs.	
14.5 bn
Rs.	 29.2 bn
Rs.	
12.5 bn
Rs.	
13.6 bn
Rs.	 13.2 bn
Rs.	
4.0 bn
Rs. 	
0.98 bn
Rs.	35.0 bn
Rs.	 41.7 bn
Rs. 	
8.7 bn
Rs. 	
27.0 bn

Citizens Budget 2026 · file page 62

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 62-
Expenditure 
Proposals - 2026
Providing vehicles/machineries required for Government Institutions and   Provincial Councils
Enhancing digital accessibility in Government Institutions
Settling the outstanding statutory payments of 10 State Own Enterprises within two years
Reactivating the Property Loan Scheme for government employees provided through Banks
Increasing the Principals' allowance and Teachers' Hardship allowance 
Increasing the allowance for Gatekeepers at unsafe railway crossings
Development of Feeder Zones as Service Zones associated with existing Investment Zones
Providing incentives to attract International Data Centers
Streamlining the land release for investment purposes
Establishment and development of of Industrial Zones
Export promotion
Encouraging the employment of youth with disabilities or special needs in the private sector
Ensuring accessibility and sanitation facilities in public places for persons with disabilities and 
special needs
Increasing the wages of Estate Workers
Providing relief for Thalassemia patients
Establishing Daycare Centers for children with disabilities including Autism
Increasing the total allocation for “Praja Shakthi Program” to Rs. 25 billion, for district and 
divisional-level implementation
Facilitating the Government Institutions to promote Cashless Economy
Increasing milk production
 Shelters for Street Animals and Crematoriums
Completing the construction of Badalgama Milk Processing Factory
Upgrading Livestock Breeder Farms 
Providing concessions for small-scale coconut cultivators
Upgrading the Temperature-Controlled Storage Facility in Dambulla
Establishing a Sustainable Agricultural Credit Fund
Providing facilities for mechanized paddy drying
Increasing agricultural production in Matale, Kandy and dry zones through Climate-Smart 
Irrigation Technology.
Increasing Mahapola, Bursary, Trainee Teacher and Nipunatha Sisu Diriya allowances by Rs. 
2,500 
Providing allowances for low-income students with disabilities studying in Higher Education 
Institutions
 12,500 
 1,000 
 5,000 
 500 
 1,000 
 250 
 1,000 
 500 
 100 
 1,000 
 500 
 500 
 1,000 
 5,000 
 250 
 500 
 20,750 
 1,000 
 1,000 
 100 
 3,000 
 1,000 
 2,500 
 250 
 800 
 500 
 1,000 
 2,750 
  
 50 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Proposal
No
Total for 
the Budget 
Proposal 
(Rs. Mn)

Citizens Budget 2026 · file page 63

National Budget  2026
Ministry of Finance, Planning and Economic Development
Citizens Budget
- 63-
Providing new houses for families facing higher risk of landslides 
Providing housing assistance for reintegration of institutionalized individuals and child protection
Implementing the “A Place of Their Own for a Beautiful Life” housing program for low-income 
families
Providing housing for internally displaced communities
Conducting feasibility studies on flood control in Hambantota, Galle, Kalutara, and Rathnapura
Kalutara Lagoon devlopment
Providing solutions for Human-Elephant Conflict
Ensuring the safety of Fishermen
Development of Fishery Harbors
Implemention of a safety program to reduce road accidents
Commencing preliminary work for the construction of the Kiran and Ponnudalkalchenai Bridges 
in Batticaloa
Construction of Rambukkana–Galagedara section of the Central Expressway
Establishing Aarogya Centers
Relocating Deniyaya and Dambulla Hospitals to suitable locations
Promoting Sports Culture
Launching a nationwide operation to prevent drug menace
Promoting Drama, Performing Arts, and Literature
Renovating Prisons and relocating them to identified suitable sites
Freeing up lands for Ratnapura City Development (construction of  Quarters for Government 
Officers)
Development of Hatton and Matale towns
Constructing City Halls in Ampara and Monaragala.
Providing subsidies for buses operating on unprofitable routes to ensure sustainable rural 
transport services
Women empowerment
Providing a Rs. 5,000 allowance for schoolchildren with disabilities from low-income families 
Completion of Nindavur Cultural Center of which the construction stopped 
Silver Economy - Investment in Senior Citizens
Satelite-Based Technology driven, information provision for Fishermen on fishing grounds
Establishment of the Inland Revenue Department in a single premise
Development of Domestic Airports
Improving facilities to ensure food security
Providing assistance to Journalists for higher education and technical approach 
Flood controlling and saltwater intrusion controlling along the Nilwala River in Matara
Finding research-based solutions to resolve the Human-Elephant Conflict
 
2,000 
 2,000 
 3,000 
 1,150 
 500 
 100 
 1,000 
 100 
 1,000 
 1,000 
 500 
 16,000 
 1,500 
 1,000 
 800 
 1,500 
 50 
 2,000 
 500 
 500 
 200
 2,000
 
 200 
 50 
 300 
 10 
 100 
 2,000 
 1,000 
 1,000 
 100 
 1,000 
 10 
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
Proposal
No
Total for 
the Budget 
Proposal 
(Rs. Mn)