Budget Speech 2026

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Budget Speech - 2026 
1. Preamble  
Honourable Speaker,  
It is our great pleasure to present our second National Budget to this House.  
Following the historic mandate given to us by the Sri Lankan citizens, within a 
short time period of a year, we have taken many decisive steps with a clear vision 
to fulfill their aspirations. The people expected a clear change in the nepotism that 
had existed until now and the corrupt political culture associated with it. Today, 
we can be proud of the transformative steps we have taken to preserve that trust. 
We have embarked on a continuous mission to modernize the economic and 
political structure, create a people-centered governance, establish the rule of law 
and order, strengthen governance, and bring our economic achievements to the 
people living at the grassroot level. 
Honourable Speaker,  
By the time we took on this challenge, the country's economic foundation was 
already tattered. Decades of macroeconomic instability and fiscal imbalances, 
structural inefficiencies, and governance weaknesses had left the entire economy 
at a critical juncture. Our people were under severe pressure. The hopes of the 
people, who were not at all responsible for this crisis, had been shattered. 
Therefore, from the moment we received our mandate, we initiated very broad 
reformative changes to stabilize the macro economy, ensure fiscal discipline, 
strengthen state institutions, prevent corruption and increase transparency, and 
ensure accountability to the people. I am pleased to announce to this House today 
that these reforms have restored fiscal, macroeconomic and social stability within 
a short period of one year. 
The economy grew by 4.8 percent in the first half of 2025, driven by strong growth 
across all sectors, surpassing the forecasts of multilateral organizations. Inflation 
has now returned to a positive value. The financial sector has stabilized with the 
reduction in the Treasury Bill interest rate. The exchange rate has also stabilized. 
The external sector, including imports and exports, has strengthened even amidst 
global shocks. Due to the increase in exports, tourism, and foreign remittance

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inflows, the gross official reserves have exceeded USD 6 billion. It is expected that 
this year, after almost two decades since 2006, the Government revenue will be 
able to reach the level of 16 percent of GDP. It is also expected that, the highest 
primary surplus as a percentage of GDP in its history will be recorded in this year, 
significantly exceeding the target value of 2.3 percent. Due to these circumstances, 
we have been able to build strong relationships with international stakeholders 
and build investor confidence like never before. 
The initial strategy to rescue the country from the economic crisis was to establish 
a transparent and accountable public financial management along with fiscal 
discipline. By strengthening domestic revenue mobilization, digitizing revenue 
administration, and rationalizing Government expenditure, we were able to 
record a high primary surplus. The continuous increase in this primary surplus 
will contribute to a significant reduction in the central Government debt as a 
percentage of GDP from 114.2 percent in 2022 to 96.8 percent by 2026. 
Furthermore, we expect to achieve that figure at a level of about 87.0 percent by 
2030. These results have paved the way for our desired exit from the debt crisis. 
The economic crisis that existed has gradually escalated into an exploding level in 
the year 2020. This has spread like a domino effect across all sectors of the 
economy. The end result was that we were declared a sovereign default status in 
April 2022. This economic bankruptcy has created a 'lost decade' for our country. 
It means that it would take 10 years to reach the economic situation that prevailed 
before the crisis. Accordingly, many people have predicted that the economic 
situation of 2019 would be regained in 2029. However, we believe that by the end 
of 2025, we will be able to regain the economic situation that existed before the 
crisis.  
Honourable Speaker,  
Our debt restructuring process is nearly completed. Sri Lanka has been placed on 
a sustainable fiscal path and the confidence of both domestic and international 
investors has been further strengthened. These remarkable achievements have led 
to the country’s sovereign ratings being upgraded by international rating agencies; 
FitchRatings, Moody’s, and S&P to CCC+, Caa1, and CCC+, respectively. These 
new ratings further reflect investment confidence in Sri Lanka. 
We are implementing the necessary economic reforms under the Extended Fund 
Facility arrangements of the International Monetary Fund (IMF-EFF) and with the 
participation of other international development partners to meet our national

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requirements. We have been able to complete successive reviews and reap the 
economic benefits of the programme by meeting its targets and structural 
benchmarks. The cooperation between the Government and international 
organizations has made significant progress in restoring macroeconomic stability, 
strengthening public financial management, and rebuilding public finances and 
external reserves, which are essential for long-term resilience. 
Social protection and human resource development is also a core objective of our 
policy approach. Accordingly, the Aswesuma programme has been expanded and 
updated to ensure it supports the truly deserving low-income families. To ensure 
that these benefits continue to be provided to low-income earners, these 
beneficiaries will be reviewed in 2026. Also, allowances for the elderly and kidney 
patients were increased. Mahapola scholarships and bursaries were also increased 
to support university students. School students from Aswesuma beneficiary 
families were given a allowance to purchase books and school supplies. The aim 
of these measures is to ensure that the benefits of economic growth reach those in 
real need. 
The public sector needs to be reformed and modernized in order to provide better 
and more efficient services. For this, our commitment was demonstrated in our 
first budget. To that end, the salaries of public servants have already been 
increased in 3 phases. Steps have been taken to fill essential vacancies in the public 
sector. Strategies are being formulated for the digitalization drive of the public 
sector. The public sector is being reorganized. The objectives of this are to build an 
efficient and attractive public service that can truly serve the people. 
Honorable Speaker, 
We have been able to accelerate governance reforms and anti-corruption drives, 
ensuring transparency, accountability and public trust. Our aim is to replace 
archaic rules and regulations with a new legal system by enacting new laws on 
public-private partnerships, state-owned enterprises, public asset management, 
and public procurement. The new draft Bills required are currently in the final 
stages. In many areas our digital approach to public finances is also currently 
being implemented. Furthermore, by strengthening the Integrated Treasury 
Management Information System (ITMIS) and creating an e-procurement system, 
we will eliminate opportunities for fraud and corruption.

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‘Corruption is a tax on the poor, and it is a fetter on our development.’ Our reforms 
are not just about increasing efficiency; they are also important tools for achieving 
social justice. Various studies have revealed that reducing corruption can increase 
economic growth. The transparency of the system for declaring assets and earned 
wealth has been improved. Steps have been taken to assure the budgetary and 
staff independence of the Commission to Investigate Allegations of Bribery or 
Corruption (CIABOC). Steps are being taken to introduce a digital asset 
declaration system by March 2026, and it is also expected to appoint an expert 
committee to introduce a code of ethics for judicial officers in 2026. In addition, we 
have taken steps to remove unnecessary privileges that politicians and high-
ranking officials had until now. Accordingly, we are working towards building a 
new society based on justice and equality. 
Friendly environment is being created for investors through measures taken to 
prevent corruption. Hateful propaganda was spread that our Government could 
be hostile to the private sector, discourage investment, and seize property. These 
claims have now been proven to be baseless. We are in the process of strengthening 
the regulatory framework by enacting the necessary legal statues to ensure 
investment protection and the ease of doing business. We ended the culture of 
providing tax exemptions and concessions to our cronies through informal means. 
Both the Strategic Development Projects Act and the Port City Act are being 
amended to provide tax incentives based on transparent, rule-based criteria. To 
increase the transparency of tax exemptions, a tax expenditure statements is 
published on the Ministry of Finance's website on a bi-annually basis. The 
Simplified Value Added Tax (SVAT) system has also been removed, making the 
tax refund process transparent and efficient, which will further strengthen our tax 
administration. 
Honorable Speaker, 
Steps have also been taken to make State-Owned Enterprises more efficient. A new 
“Public Commercial Business Management Act” is to be introduced for State- 
Owned Enterprises and the Bill is scheduled to be presented to this Parliament in 
the first half of 2026. It will clearly identify the objectives of State-Owned 
Enterprises, publish annual audited accounts, and limit borrowing for appropriate 
purposes. Furthermore, we are strengthening the regulatory framework for the 
supervision and management of our public assets. The National Audit Act was 
already been amended to facilitate the imposition of fines on officials who fail to 
fulfill their responsibilities in the supervision and management of public assets.

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A special task force will be appointment to review the management and use of 
state lands. It is expected that the Public Assets Management Bill be passed in 2026 
to improve the transparency, management and disposal of public assets. Cost-
reflective energy pricing continues and concessions will be confined to the 
necessary sectors. To disrupt the networks of institutions that support corruption, 
we are strengthening the anti-money laundering framework by introducing a 
functional beneficial ownership registry by January 2026. Further, the “Proceeds 
of Crime Act” has already been passed. A separate police division, headed by a 
Deputy Inspector General of Police, has already been established to enforce this 
endeavor.  
In line with this vision, we aim to build a safe, secure and just society. We must 
free our children from the long-standing victimization of drugs and organized 
crime. Our children, who have been victims of drugs and organized crime for a 
long time, must be rescued. To this purpose, a multifaceted action plan has been 
prepared including the actions such as disrupting the supply chain of narcotics, 
weakening the demand network, implementing education and rehabilitation 
programmes, and providing employment opportunities. 
We are grateful to our bilateral and multilateral partners who have supported our 
development, as well as the Central Bank of Sri Lanka for their contribution. These 
partnerships have helped rebuild a stable and prosperous Sri Lanka, and we look 
forward to further strengthening these ties. 
With this second Budget, we expect to further strengthen the foundation we laid 
in the first Budget and achieve a rapid economic leap. We expect the contribution 
and support of all parties to overcome challenges and move forward on our 
journey towards a Thriving Nation and a Beautiful Life. 
  
2. Strategic Objectives of the 2026 Budget 
Honourable Speaker, 
 
2.1 Sustainable and Inclusive Economic Growth 
Our key strategic objective is to achieve a sustained growth rate exceeding 7 
percent within the next few years, ensuring that the benefits of such growth are 
shared equitably across all regions, communities and social groups of the country.

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For this initiative, a participatory economy, increasing productivity, promoting 
innovation, and private sector-led investment and growth will be the main driving 
forces of our economy. We will continue to attract foreign investment through a 
transparent and rules-based mechanism. We also need to integrate Sri Lanka into 
global value chains by strengthening exports and value-added industries. Public-
Private Partnerships (PPPs) and the modernization of State-Owned Enterprises 
will further strengthen these efforts. It is also essential to implement strategic 
infrastructure development projects efficiently, transparently and accountability. 
2.2 Higher Income Through Export Diversification 
With the aim of further enhancing Sri Lanka’s export growth, efforts are being 
made to diversify exports, improve export competitiveness, connect with global 
value chains and capture new export markets as well as expand existing markets 
in accordance with the National Export Development Plan (2025-2029). An expert 
committee has already been appointed to review existing trade agreements and 
facilitate to negotiate new free trade agreements, with the objective of expanding 
Sri Lanka’s export potential. We are working to introduce a new tariff policy, 
improve the necessary financial facilities for the promotion of new goods and 
services exports and establish a Trade National Single Window (TNSW). 
2.3 Ensuring Debt Sustainability 
The International Monetary Fund (IMF) had declared in 2022 that Sri Lanka’s debt 
level was unsustainable. The main reasons for this declaration were irresponsible 
borrowing for non-priority projects, failure to generate the necessary assets from 
the loans obtained, failure to complete the relevant projects on time, and failure to 
manage debt within a formal and systematic policy framework. However, we are 
currently developing a clear plan to ensure debt sustainability, particularly 
through the Public Debt Management Office. Market confidence has grown 
rapidly due to the near-complete debt restructuring process and our intervention 
to achieve macroeconomic stability. Also, in a context where Sri Lanka's credit 
ratings have been upgraded, our government is moving systematically and 
steadily, along a clear path towards achieving debt sustainability. 
Maintaining the gross financial requirement at a level below 13 percent of GDP in 
the medium term, and annual central government foreign currency debt servicing 
at a level not exceeding 4.5 percent of GDP is a strategy to ensure debt 
sustainability. Accordingly, as the public financial situation has strengthened, 
public debt as a percentage of GDP has begun to decline gradually.

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The public debt target as a percentage of GDP of 95 percent by 2032 is gradually 
reaching. Given the remarkable performance achieved in the public finances and 
our debt management strategy, we believe that there is a high level of potential to 
maintain public debt as a percentage of GDP below 90 percent by 2032. 
Certain groups are spreading an unfounded opinion that an inability to pay 
foreign debt may arise in 2028. But what is the real situation? We made the 
payment of USD 1,674 million for foreign debt servicing in 2024. Foreign debt 
service in 2025 amounted to USD 2,435 million, of which USD 1,948 million had 
been paid by September 30. Another USD 487 million is set to be paid by December 
31 of this year. Accordingly, foreign debt service payments in 2025 are an increase 
of USD 761 million compared to 2024. 
Honourable Speaker, 
The foreign debt service payment in 2028 is only USD 3,259 million. That is, an 
increase of only USD 824 million compared to 2025. We have the capacity to pay 
this. Therefore, we believe that the people of this country will not accept such false 
propaganda. 
Further, a portion of International Sovereign Bonds (ISBs) obtained by the 
Government has been as Governance-Linked Bonds (GLB). They should be repaid 
in 2034 and 2035. The creditors have agreed to provide relief in the debt 
restructuring process depending on the progress that Sri Lanka achieves on two 
indicators during the debt restructuring process. 
Accordingly, the government's revenue targets for 2026-2027 should be 
maintained above 15.3 percent and 15.4 percent of GDP, respectively, and the fiscal 
strategy should be announced within the stipulated time frame. If these targets are 
met, the creditors have agreed to provide a 0.75 percent reduction in the annual 
interest rate payable from 2028 to 2035. 
Accordingly, the Government will receive a debt servicing benefit of USD 7.9 
million per year. The Government is working to achieve these economic targets. 
2.4 Strengthening the Production Economy 
As an economy heavily dependent on imports, Sri Lanka remains vulnerable to 
global shocks. Therefore, we expect to build a production economy. We are 
currently working to provide targeted subsidies, necessary technology and market 
access to our Small and Medium-sized Enterprises (SMEs) to manufacture the

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goods loacally that are currently imported. We are also focusing on increasing the 
participation of the private sector in large-scale production and in adding value to 
local products. For this, we expect to invest in the necessary infrastructure and 
utilize PPPs for human resource development. 
 
2.5 Eradicating Rural Poverty 
To eradicate rural poverty, the smallest unit, the village, must be transformed into 
a prosperous village. The benefits of the growth of the economy at the national 
level must be brought to the village level as rural people will also receive such 
benefits. As such, empowering the rural people to engage in productive economic 
activities is our main strategy. A modern and sustainable development 
programme that leaves no one behind is being implemented at the national level 
for this purpose. It is implemented under a development framework based on 
sustainable development goals and targets, including increasing economic 
opportunities, developing infrastructure, promoting a productive economy, 
planned urbanization, and improving education and health facilities.  
At the same time, a strong social protection programme must be created for those 
who need special care and those who fall into transitional poverty due to the 
impact of various crises. It must be noted that our policy of achieving a Thriving 
Nation - A Beautiful Life has been formulated to achieve this goal. 
 
2.6 Promoting Digitalization 
We have identified digitalization as an important strategic approach to enhance 
our economic growth and social life. We have identified that the digital economy 
in our country has the potential to grow to USD 15 billion. Also, this digital 
transformation that we are achieving makes a significant contribution to 
transparent and efficient governance and service delivery. Therefore, we are in the 
process of providing the necessary financial support and create the legal and 
institutional environment to build a strong digital infrastructure.

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3. Medium-Term Macroeconomic Path 
Honourable Speaker, 
We will continue to build upon the ongoing macroeconomic stabilization, 
strengthened governance, and revenue-based fiscal consolidation which we have 
already achieved. Our goal is to confidently steer our economy towards strong, 
sustainable, and inclusive growth. We are working towards achieving an 
economic growth rate of over 7 percent in the medium term. 
We have laid a solid foundation in the first year to achieve these objectives. 
Accordingly: 
• Our economic growth increased to 4.8 percent in the first half of 2025, 
compared to 4.6 percent recorded in the same period of 2024. 
• The unemployment rate declined to 3.8 percent in the first quarter of 2025, 
compared to 4.5 percent recorded in the same period of 2024. 
Compared to first nine months of 2024 during the first nine months of 2025; 
• Our merchandise exports increased from USD 8.5 billion to USD 9.1 billion. 
• Workers’ remittances increased from USD 4.8 billion to USD 5.8 billion. 
• Tourism earnings increased from USD 2.3 billion to USD 2.5 billion. 
• Revenue and Grants increased from Rs. 2.9 trillion to Rs.3.8 trillion, exceeding 
our targets. 
• The primary balance increased sharply from Rs. 0.8 trillion to Rs. 1.5 trillion,  
also  exceeding our targets. 
The performance of the capital market as of September 2025 compared to 
September 2024: 
• The All Share Price Index showed a historic increase from 11,855 points to 
21,779 points. 
• The S&P SL20 Index increased from 3,453 points to 6,127 points. 
• Market capitalization expanded from Rs. 4.4 trillion to Rs. 7.8 trillion. 
• Foreign purchases increased from Rs. 37 billion to Rs. 47 billion.

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Honorable Speaker, 
We have ended an era of fiscal recklessness and replaced it with a prudent legal 
framework. This legal framework will safeguard us from future shocks and ensure 
that every citizen manages their taxes with discipline, transparency and 
accountability. 
We are systematically and efficiently increasing Government revenue. 
Government revenue is projected to exceed 15.3 percent of GDP by 2026. The 
Department of Inland Revenue is being modernized through the implementation 
of RAMIS 3.0. Our goal is to increase Government revenue to 20 percent of GDP 
in the long term. We also aim to gradually adjust the direct-to-indirect tax ratio 
from 25:75 to 40:60, thereby ensuring a more progressive and equitable tax system. 
We will maintain primary expenditure within the 13 percent limit and maintain 
public investment at a minimum of 4 percent of GDP, to strengthen social safety 
nets for the most vulnerable and develop essential infrastructure. 
Honourable Speaker,  
Our fiscal strategy is now firmly positioned on a path that replaces volatility with 
predictability, privilege with equity, and short-term gains with long-term 
prosperity. It forms the foundation for building a sovereign, prosperous and good 
Sri Lanka for all. 
I now present to this Honourable Parliament the Budget Proposals for the year 
2026. 
4. Private Sector and Investment-led Economic Growth 
4.1 Creating an Investment-friendly Environment 
Honourable Speaker, 
The informal and biased culture that Sri Lanka has maintained so far regarding 
the investments has now changed. Accordingly, we are building a new 
environment where cronyism, racketeering, and nepotism are replaced by 
credibility, discretion by predictability, and privilege by partnership. This kind of 
environment helps attract quality investments. Provide the strength required for 
the recovery of our nation.

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➢ To create a stronger rule-based incentive regime for foreign and domestic 
investments, amendments have been introduced to the Strategic 
Development Projects Act and the Colombo Port City Commission Act. 
These amendments streamline the procedures for foreign direct 
investment (FDI), enhance the transparency of the incentive system, and 
provide the consistency that foreign investors seek. We believe that these 
amendments will significantly increase the inflow of foreign direct 
investment into the country. 
 
➢ Investing in Sri Lanka's economic and social infrastructure is crucial to 
support economic growth, job creation, and increasing the resilience of the 
economy. The private sector can play an important role in providing this 
infrastructure through strong partnerships with the Government. The draft 
Bill, which provides a transparent legal framework for the Public-Private 
Partnership (PPP) Act, was submitted for public consultation in September 
and will be presented to this House for approval in early 2026. 
 
➢ To further strengthen investor confidence and protect investments, a new 
“Investment Protection Act” will be passed in early 2026. 
 
➢ By developing auxiliary zones as service zones associated with existing 
investment zones, there is a potential to improve the efficiency of the main 
investment zones, expand the economic benefits at the provincial level and 
integrate SMEs into the value chains. This is expected to create new 
opportunities for SMEs, improve labor mobility and expand the economic 
benefits of industrialization at the provincial level. For this purpose, Rs. 
2,000 million has already been allocated and it is proposed to allocate 
another Rs. 1,000 million. 
 
➢ As the infrastructure and investment-friendly environment required for 
investment growth in the IT sector have not yet been practically 
strengthened, attracting investors to the sector has become challenging. 
There are two technology parks in Kurunegala and Galle, which were 
started by previous governments at great expense and have been 
abandoned for many years. The contractors who built this project have 
taken loans from the People's Bank and the National Savings Bank, but to 
clear the outstanding loans that have not been paid to the banks for many

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years, Rs. 1,500 million will be paid this year itself and the projects will be 
opened for private sector investment. Two more parks are planned to be 
established under the Board of Investment of Sri Lanka, centered in the 
cities of Digana and Nuwara Eliya. 
 
➢ A residence visa system will be introduced for foreign investors who meet 
a certain minimum investment threshold in priority sectors or eligible 
projects. 
 
➢ It is expected to take necessary steps to implement the approval process for 
projects implemented under the Board of Investment of Sri Lanka through 
a "Single Window" mechanism based on digital technology. This 
mechanism will enable the investment process to be carried out efficiently, 
transparently and quickly, and will provide investors with the necessary 
confidence and convenience in making business decisions. Rs. 100 million 
has already been allocated for this purpose. 
 
➢ It is essential to streamline the preparation of the Land Use Policy Plan and 
improve the efficiency of land release for investment. For this purpose, it 
is proposed to allocate Rs. 100 million in this budget to improve the 
facilities of institutions related to the land subject, such as the Board of 
Investment, and to establish a central digital information system that 
includes land information by integrating these institutions. Also, it is 
expected to introduce a new legal framework related to the provision of 
land to investors and to introduce a methodology for determining the 
valuation of land according to the nature of the investment. 
 
Honourable Speaker, 
 
➢ The Bill to establish a government company to hold shares in commercial 
enterprises, which aims to increase accountability, transparency, 
governance and profitability in state-owned commercial enterprises, 
proposed in our previous budget, is expected to be presented to Parliament 
in the first quarter of 2026.

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➢ To increase exports, the Export Development Board is in the process of 
preparing the National Export Development Plan with the technical 
assistance of public and private stakeholders and the Asian Development 
Bank. In addition to the basic activities related to the implementation of the 
National Export Development Plan, it is proposed to allocate Rs. 250 
million under the National Export Brand Promotion Plan of the Export 
Development Board. 
 
➢ We have initiated discussions to expand free trade agreements with 
various countries and regions. For this purpose, the Cabinet has already 
appointed a committee with expert capacity and that committee is 
reviewing existing trade agreements and exploring new trade agreements 
to be added. 
 
➢ It is proposed to allocate an additional Rs. 250 million in addition to the 
provision allocated to the Export Development Board for programmes 
such as participation in trade fairs, product certification, digital marketing, 
and adaptation to the expectations of international buyers for the 
promotion of Sri Lankan products and services in the international market 
by export-oriented enterprises, especially SMEs and emerging service 
sectors. 
 
➢ Improving trade facilities is an essential factor in enhancing Sri Lanka’s 
competitiveness in international trade. In this regard, developing facilities 
including 
the 
Trade 
National 
Single 
Window, 
updating 
laws, 
standardizing regulatory processes, reducing transaction costs and 
enabling entrepreneurs to connect efficiently with global markets are of 
paramount importance. For this purpose, Rs. 2,500 million has been 
allocated as the necessary provisions for improving the Trade National 
Single Window facility. 
 
4.2 Integrated Framework for Strengthening Small and Medium Enterprises in 
Sri Lanka 
➢ In order to make the coordination of institutions dealing with the 
development of Small and Medium sized Enterprises more efficient, it is 
proposed to consolidate the functions of the Industrial Development Board

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(IDB), the National Enterprise Development Authority (NEDA), and the 
Small Enterprises Development Division (SED) and place them under the 
Industrial Development Board (IDB). We propose to allocate Rs. 1,000 
million in addition to the current budgetary provision of Rs. 4,000 million 
for 2026 to properly manage the establishment and development of 
industrial zones. 
 
➢ Small and Medium-sized Enterprises contribute more than 52 percent of the 
GDP and employ nearly half of the total workforce. With the aim of 
increasing the access to finance of these enterprises, several government-
backed loan schemes have already been introduced, providing loans at 
concessional interest rates to meet investment and working capital needs 
through local banks. 
 
➢ To minimize risks associated with lending to SMEs, the Government has 
honored the promise given, by enabling businesses to obtain loans without 
collateral under the National Credit Guarantee Institution. Accordingly, by 
2025, collateral-free loans amounting to over Rs. 4,027 million have already 
been granted. For 2026, it is planned to provide credit guarantees for loans 
amounting to approximately Rs. 7,000 million. The Asian Development 
Bank has provided a loan of USD 50 million to establish this institution. 
 
➢ Rs. 25,000 million has been allocated to provide loans at concessional 
interest rates of up to Rs. 25 million to a successful business and up to Rs. 
15 million to businesses facing economic difficulties for working capital 
needs and investments of small and medium scale entrepreneurs. 
 
➢ Rs. 5,900 million has been allocated to provide loans of up to Rs. 50 million 
to Small and Medium sized Enterprises. 
 
➢ Development of agricultural value chains 
 
o Rs. 1,700 million has been allocated to provide agricultural loans up 
to Rs. 3 million at an interest subsidy of 5 percent through the New 
Comprehensive Rural Credit Scheme (NCRCS).

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o A new loan scheme has been initiated through the Small and 
Medium Enterprise Development Loan Scheme and Rs. 7,700 million 
has been allocated for it, through which new loans up to Rs. 50 
million will be provided at concessional interest rates. 
 
 
o Rs. 6,200 million has been allocated to provide loans up to Rs. 50 
million under a concessional interest rate program for the 
development of agricultural value chains. Under the Pledge Loan 
Scheme, small and medium-scale paddy mill owners can obtain 
loans up to Rs. 50 million at a concessional interest rate. Rs. 15,000 
million has been allocated for this purpose. 
 
o It is proposed to allocate Rs. 800 million to establish a Sustainable 
Farmers' Loan Fund aimed at increasing access to agricultural 
projects. 
Honorable Speaker, 
➢ In addition, funds have been allocated for all concessional loan proposals, 
including youth entrepreneurship loan schemes, microfinance loans, and 
women entrepreneurship empowerment loan schemes. Accordingly, loan 
facilities of Rs. 80,000 million have been provided for 2026 for loan schemes 
such as refinance loans, grants, pledge loans, collateral-free loans, and interest 
subsidies. 
 
➢ With the aim of expanding new investments and encouraging new investments 
in small and medium-sized enterprises, it is proposed to reduce the investment 
threshold eligible for the existing enhanced capital allowances from USD 3 
million to USD 250,000. 
 
5. Promotion of Tourism Industry 
Honourable Speaker, 
The tourism sector is expected to grow rapidly, with a target of increasing tourism 
earnings to USD 8 billion and tourist arrivals to 4 million by 2030. Steps have been 
taken to restructure institutions in the tourism sector to improve productivity and 
efficiency in order to overcome the major challenge to the development of the

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tourism sector, which is the coordination issues between various stakeholders. In 
addition to strengthening institutions, it is essential to continue investing in 
infrastructure development, human resource development, and conducting an 
integrated marketing and advertising campaign to achieve the goals of various 
sectors of the tourism industry. 
➢ It is proposed to implement a tourism destination development project that 
focuses on nature and highlights historical heritage. For these activities, Rs. 
3,500 million has been allocated from the Sri Lanka Tourism Development 
Authority. Under this initiative, it is proposed to implement development 
programmes for the coastal and marine environments of the Western Province, 
including the Hamilton Canal and Negombo Lagoon. 
 
➢ Further, it is planned to make the Haputale area another major tourist 
destination in Sri Lanka by improving the infrastructure facilities and 
providing necessary publicity in the tourist attractions located in the areas of 
Haputale, Beragala and Idalgashinna, which already have a large local and 
foreign tourist attraction in the Uva Province. 
 
➢ More than 900 underutilized tourist bungalows and resorts owned by the 
government have been identified. Most of these are located in places with high 
tourist attraction. These places are being developed into income generating 
units with the support of the private sector to meet the accommodation needs 
of the tourism sector. 
 
➢ It is estimated that by 2030, over 800,000 skilled personnel will be required 
across various categories in the tourism and hospitality sector. Due to the 
limited physical and human resources available, the Sri Lanka Institute of 
Tourism and Hotel Management (SLITHM) alone cannot meet this demand. 
To bridge this national level workforce gap, the Sri Lanka Institute of Tourism 
and Hotel Management has introduced a Hospitality Multi-Purpose 
Programme, a short-term vocational training programme, through training 
institutions in the public and private sectors recognized by the Tertiary and 
Vocational Education Commission (TVEC) throughout the island. For this 
purpose, it is proposed to utilize Rs. 500 million from the underutilized 
Tourism Development Fund allocated to the Sri Lanka Tourism Promotion 
Bureau.

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➢ It is expected to develop the Beira Lake and make it an attractive place in the 
heart of Colombo, and to increase the productive use of all aspects of social, 
economic and environmental, including tourism activities. For this purpose, it 
is proposed to utilize Rs. 2,500 million from the underutilized Tourism 
Development Fund allocated to the Sri Lanka Tourism Promotion Bureau. 
 
➢ The promotion of domestic flights is essential for the growth of the tourism 
industry. For this purpose, it is expected to complete the development work of 
the Hingurakgoda Airport in 2026, which has already been commenced. It is 
proposed to allocate a provision of Rs. 1,000 million for the development of the 
Sigiriya and Trincomalee domestic airports, and to expand the operations of 
the Jaffna International Airport, and the Civil Aviation Authority will 
contribute additional provisions. 
 
➢ Sri Lanka has a unique opportunity to establish itself as a leading International 
Transit Hub to meet the growing demand for air transport and facilitate the 
movement of passengers and cargo. Our strategic location provides 
unparalleled access to both the Western and Eastern regions. 
 
To make this vision a reality, we must invest in state-of-the-art airport facilities 
and develop our own airline with an adequate fleet of aircraft. To this end, we 
will resume the stalled project to expand the Bandaranaike International 
Airport in the first quarter of next year. Further, work is underway to 
successfully complete the debt restructuring process of SriLankan Airlines. 
 
6. Modernization and Digitalization 
Honourable Speaker, 
Digital economic development is a critical path to economic growth and global 
competitiveness that benefits all. Sri Lanka has missed many opportunities on its 
development path, but this digitalization opportunity should not be missed. With 
Government investment of over Rs. 25,500 million in 2026, Sri Lanka has the 
potential to capture a significant share of the digital transformation. By providing 
infrastructure 
needs, 
streamlining 
investment 
processes, 
and 
fostering 
innovation-friendly environments, these proposals provide a workable roadmap

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for sustainable digital advancement. Through improved infrastructure, 
streamlined investment processes, and innovation-friendly environments, these 
proposals offer a viable roadmap for sustainable digital advancement.  
➢ Under this programme, significant progress has been made in several areas 
such as introducing the GovPay system for payments related to Government 
institutions, establishing the National Cyber Security Operations Centre, 
improving the document services provided to citizens through the Presidential 
Fund and embassies, setting up the GovTech Institute to accelerate 
digitalization, establishing the Digital Economy Authority in the near future, 
and successfully issuing 5G licenses. To ensure the participation of every 
citizen, efforts are underway to expand broadband access across the country, 
attract foreign direct investments, and foster an ecosystem that supports new 
entrepreneurs. Investments are being encouraged in next-generation digital 
infrastructure, including artificial intelligence, cloud computing, and data 
centers. For this purpose, an allocation of Rs. 3,000 million has been provided. 
 
➢ The Personal Data Protection Act has been passed with amendments to enable 
the Data Protection Authority to operate. Through the new Digital Economy 
Act, steps will be taken to establish the Digital Economy Authority as well as 
the Digital Economy Council, which will function as a Cabinet Subcommittee 
on the Digital Economy. 
 
➢ A number of critical steps for building a digital economy have been initiated, 
such as the Sri Lanka Unique Digital Identity (SLUDI), national data exchange, 
upgrading the Lanka Government Cloud infrastructure, and creating 
specialized software for a single-window digital interface to deliver 
Government services. An awareness program on a Unique Digital Identity will 
be launched in Sri Lanka in early 2026. The first digital identity card will be 
issued in the 3rd quarter of 2026. 
 
➢ The transformation towards a society that transacts through digital channels 
has begun, reducing the tendency to use of cash. The aim of this transformation 
is to facilitate transactions, reduce the cost involved, minimize misuse of 
money and increase efficiency. In the first quarter of 2025, more than Rs. 2,000 
billion worth of transactions have been made through the Lankapay online 
platform alone in government payments. In order to promote the creation of a 
cashless society, it is proposed to provide facilities for all government

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19 
transactions through the online payment mode. As an initial step, it is 
proposed not to charge service fees for payments to government institutions as 
an incentive for this purpose. It is proposed to allocate Rs. 1,000 million for 
covering the cost of these transactions, system improvements and public 
awareness. Further, Rs. 500 million has been allocated for providing the 
necessary facilities and promotional programmes. 
 
➢ Accordingly, effective from January 1, 2026, all service fees for electronic 
payments to Government institutions are permitted to be waived. Further, to 
promote payments using the QR code system, we propose to provide the 
necessary provisions through the expenditure head of the Ministry of Digital 
Economy to enable QR code payments worth less than Rs. 5,000 to be made 
free of charge. 
 
➢ Sri Lanka has a high potential to emerge as a regional hub for setting up data 
centers. There are many crucial steps that we need to take in attracting 
investments in data centers. Among them, it is necessary to strengthen data 
security, confidentiality, privacy, and digital governance legal systems and 
ensure investor confidence. We are already doing that. To encourage these 
investments, an attractive environment should be created in this sector for 
foreign and local investors through financial incentives, green energy use 
incentives, low-cost electricity at the initial stage, and concessional provision 
of necessary land. As an initial step, it is proposed to allocate Rs. 500 million 
for 2026. 
 
➢ The government is providing medium-term funding for public-private 
partnerships and strategic digital infrastructure projects to position Sri Lanka 
as a regional leader in innovation, particularly in digital infrastructure and 
artificial intelligence. Rs. 750 million has been allocated to foster innovation, 
provision of funds for selected artificial intelligence projects, scholarships for 
foreign training and development of local language datasets, and provide 
artificial intelligence and cloud facilities for research and development 
purposes in universities and schools.

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20 
➢ In order to expand access to digital technology for all citizens, it is envisaged 
to provide broadband vouchers for education-related access to children from 
disadvantaged and other low-income families. The aim is to further enable 
online education and participation in the digital economy. This will ensure the 
creation of a digital future that benefits all. 
 
➢ To accelerate the spread of digital technology, a simpler and faster unique 
approval process will be established for the construction of digital 
infrastructure facilities such as communication towers. It is proposed to 
suspend the tax applicable to new towers constructed under this digital 
technology expansion programme for a period of 5 years. 
 
➢ To attract investment, a fund will be established in 2026 to accelerate the 
growth of the start-ups ecosystem. An initial government grant of Rs. 1,500 
million (USD 5 million) has been allocated under the Ministry of Digital 
Economy expenditure head for the establishment of the fund. 
 
➢ It is also proposed to establish "Virtual Special Economic Zones" through the 
Board of Investment to practically operate in Sri Lanka, generating exports and 
employments. 
 
7. Strengthening the Research and Development Sector for 
Economic and Social Advancement  
Honourable Speaker, 
The draft Research and Development Policy of the Government has been 
finalized. In line with the Government's development process, the national 
programme to bring research to commercialization will be implemented by 
identifying priorities while providing appropriate resources. The National 
Research, Development and Commercialization Institute and the National 
Council on Research and Development will be established as a centralized 
administrative institution to oversee the entire process, and the relevant bill 
will be presented to this council in 2026. 
A provision of Rs. 1,200 million has been allocated for the national programme 
to bring research to commercialization.

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21 
8. Continuous Programme of Clean Sri Lanka 
In our previous budget, it was proposed that our country would become a Clean 
Country - a Clean Sri Lanka in order to build A Thriving Nation – A Beautiful Life. 
The objectives of the Clean Sri Lanka project include improving ethical policies 
and responding to a cleaner physical environment and an island-wide moral 
commitment. We reiterate that the Clean Sri Lanka programme is not limited to 
one book or a single project and that this programme is not a roadmap that will be 
completed in a day, a month, or a few years. It is a large-scale, non-stop 
programme that continues to move forward and must move forward, and new 
things must be added, and today we are making it a reality. The “Clean Sri Lanka” 
project aims to build a society that is clean not only in terms of the environment 
but also in all aspects. That continuous programme extends to making the noble 
aspiration of creating a clean country in every respect, such as a clean country free 
from drugs, a clean country free from the underworld, a clean country free from 
bribery and corruption, a clean country free from corrupt politicians obsessed with 
power, a clean country with an efficient public service instead of an inefficient 
public service, a clean country that respects the law and order, a reality. 
We introduced the Clean Sri Lanka programme as a programme that everyone can 
agree on, regardless of party affiliation, in order to make this country a 
standardized and beautiful country. Rs. 6,500 million has been allocated for that 
programme. 
 
9. A Nation United National Operation 
Honorable Speaker, 
I would like to remind you that the drug menace is a very serious epidemic facing 
our country and the real situation is more terrifying than we think. This drug 
epidemic is even invading the school bags of young children who know nothing. 
It is also knocking on the doors of almost every home. The young generation is 
being pushed into a serious tragedy, and the entire country is directly and 
indirectly becoming the prey and victims of this disaster. This situation is sending 
a dangerous message to all levels of society. It is proposed that this terrible disaster 
must be decisively ended in order to create a clean and beautiful country. Some 
who have been victims of drug addiction, organized crime, and corruption in the 
public service are breaking the chains that have been tied together by political zeal

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22 
one by one. This daunting and essential task is not a solitary battle that can be done 
by one party or one group alone. We invite the entire country to this noble national 
task. Accordingly, today, ‘A Nation United’ National Operation to eliminate toxic 
drugs from the entire social fabric has been launched. It is a programme that does 
not stop, does not retreat, and fights to the end, under any challenge. 
➢ It is proposed to allocate Rs. 1,500 million to implement drug control 
programmes covering all sectors that are the basis for taking forward the vision 
of “A Nation United National Operation”. 
➢ It is proposed to establish 10 voluntary rehabilitation centers under the 
Rehabilitation Bureau in 10 locations including Polonnaruwa, Welikanda-
Senapura, to rehabilitate people addicted to toxic drugs. 
➢ Although the capacity of the existing prisons is sufficient for only 11,000 
inmates, there are currently over 35,000 inmates in those prisons. It is proposed 
to allocate Rs. 2,000 million to meet the urgent need for efficient prison 
operations, ie. the expeditious implementation of projects such as the 
expansion of identified prisons and relocation to recommended locations, 
improvement of prison infrastructure, and referral of prisoners to community 
programmes and detention in open prisons, in accordance with the existing 
legal framework. 
 
10. Supporting the Disabled Community 
The disabled community, which is about 1.6 million people scattered throughout 
the country, representing around 7 percent of the total population. As a country 
that has ratified the National Convention on the Rights of the Disabled, the 
Government has the responsibility to protect all the rights of the disabled 
community. 
➢ Rs. 19,000 million has already been allocated to provide a subsidy of Rs. 10,000 
each to about 140,000 persons with disabilities through the Aswesuma 
programme. 
 
➢ The existing gazette notification regarding the accessibility regulations for 
persons with disabilities will be revised in accordance with international 
standards and specifications, considering it a priority task.

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23 
➢ It is proposed to allocate Rs. 1,000 million from this budget to provide 
accessibility and sanitation facilities to public places such as Divisional 
Secretariats, Railway Stations, Bus Stands, Courts, Police Stations and other 
places for the disabled community. 
 
➢ It has been officially announced that 3 percent of the government service has 
been allocated for the disabled community, but it is not being implemented 
properly. Therefore, efforts will be made to recruit that 3 percent for 
government service in all future public service recruitments. 
 
➢ With the aim of encouraging private employers and increasing employment, if 
persons with disabilities who are able to work are employed in the private 
sector, we propose to pay a wage subsidy of 50 percent of the employees' 
salary, subject to a maximum of Rs. 15,000, for up to 24 months. It is proposed 
to allocate Rs. 500 million for this purpose. 
 
➢ The construction of day care centers for children with disabilities, including 
autism, is already underway under the Ministry of Health and the Department 
of Social Services. For the continuation of these activities in the coming year, 
Rs. 100 million has been allocated under the Ministry of Health and Rs. 447 
million under the Department of Social Services. It is also proposed to allocate 
an additional Rs. 500 million for the establishment of day care centers to further 
expand these activities. 
 
11. Education and Training 
 
Honorable Speaker,  
 
➢ With the aim of reducing the cost of books, equipment and stationery for a 
family to educate their children and ensuring that every child receives the 
stationery they need for their studies, we continue Rs. 6,000 stationery 
allowance provided to students in 2025 for the year 2026 as well. For this 
purpose, Rs. 9,000 million has been allocated under the Aswesuma 
Programme.

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24 
➢ Since education is considered a fundamental right of all children, efforts are 
being made to provide education to children with disabilities through inclusive 
education. However, the engagement in education children with disabilities 
remains very low. With the aim of sending these children to school, it is 
proposed to allocate Rs. 50 million from this year's budget to provide a 
monthly allowance of Rs. 5,000 per disabled child from low-income families, 
based on medical recommendations. 
 
➢ Although the number of students enrolled in universities has increased to 
43,000 over the past decade, the lack of adequate facilities for them has created 
many serious problems. Therefore, Rs. 2,500 million has been allocated to 
improve common facilities such as hostels, canteens and common learning 
areas for students.  
 
➢ Rs. 11,000 million has been allocated for the development of medical faculties 
at Sabaragamuwa, Moratuwa, Ruhuna, Uva Wellassa and Eastern Universities 
to sort out the issues caused by nonexistence of professorial units and 
laboratory facilities required for quality medical education, even though new 
medical faculties has been established past years.  
 
➢ In addition, Rs. 11,500 million has been allocated for improving facilities and 
research activities at universities and higher educational institutions. 
➢ Mahapola and bursary allowances provided for university students have 
increased by Rs. 2,500 in our first budget. In 2026 also, we propose to increase 
the monthly Mahapola and bursary allowances for university students by Rs. 
2,500 to keep pace with the rising cost of living. Accordingly, the monthly 
Mahapola allowance will be increased to Rs. 10,000 and the bursary allowance 
will be increased to Rs. 9,000. subsequently, the "Nipunatha Sisu Diriya 
Allowance" will also be increased by Rs. 2,500. 
 
➢ A very low percentage of children with disabilities pursue higher education. 
They also study in those educational institutions in an environment where 
special facilities for children with disabilities are very limited. Therefore, with 
the aim of encouraging students with disabilities studying in higher

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25 
educational institutions, it is proposed to allocate Rs. 50 million to provide a 
monthly allowance of Rs. 5,000/- to students from low-income families. 
➢ It is proposed to increase the allowance paid to National College of Education 
scholarship recipients by Rs. 2,500. It is proposed to allocate an additional Rs. 
2,750 million in addition to the amount currently allocated to pay the increased 
allowance. 
➢ Rs. 1,500 million will be allocated from the budget for the construction of 
hostels in selected universities, especially in the South-East, Jaffna 
(Kilinochchi), Vavuniya, Eastern and Sabaragamuwa universities. Provisions 
have also been made in this year's budget for the renovation of hostels that 
have not been properly maintained due to the financial crisis in the country. 
Going forward, more attention will be paid to utilizing the building facilities 
of the surrounding community when providing dormitory facilities for 
university students. 
➢ It is expected that the quality of vocational education will be improved and 
decent employment opportunities will be made available through the 
upcoming education reforms. Accordingly, activities such as improving the 
facilities of vocational training centers, modernizing subject courses, and 
training teachers and instructors will continue. For this purpose, the necessary 
work to upgrade 9 vocational education and vocational training centers as 
Centers of Excellence and to upgrade 50 training centers will commence in 
2026. Rs. 8,000 million has been allocated from the budget for the improvement 
of overall vocational training education, including Rs. 2,000 million. 
 
 
12.   A Healthy Population for a Developed Country 
 
Honorable Speaker, 
 
Declining birth rates, increasing elderly populations, increasing prevalence of non-
communicable diseases, nutritional problems, and climate change have adversely 
affected the health of the entire human community. Despite the existence of free 
healthcare services, it is an issue that people have to bear significant personal 
expenses for their health needs for a long time. The government will provide 
solutions to these issues in the coming years, utilizing modern technology.

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26 
➢ We propose to establish "Arogya" centers covering between 5,000 - 10,000 
people with the aim of increasing people's access to services aimed at primary 
health and well-being. We propose to allocate Rs. 1,500 million to implement 
this concept as a pilot project in 2026 in locations such as maternity and 
children’s clinics, Medical Officer of Health (MOH) offices, etc., which 
currently provide various health services and have the necessary 
infrastructure. Considering its results, this programme will be implemented 
throughout the country over the next 03 years in collaboration with Provincial 
Councils. 
 
➢ Secondary health services are provided through 82 Base Hospitals. The 
facilities of most of these hospitals have not been developed recently. 
Provisions have been made to commence the first year of a five-year 
programme of Rs. 31,000 million to improve the quality of secondary health 
services by developing these hospitals. 
➢ Cardiovascular diseases are at a significant level in Sri Lanka and account for 
nearly 40 percent of all deaths, and it continues to grow. The Cardiology Unit 
of the Colombo National Hospital, although operating as the largest and most 
advanced cardiac care center in Sri Lanka, has failed to accommodate the 
increasing number of patients due to limited space and limited facilities. Due 
to this, people have had to wait on waiting lists for long periods of time or 
spend a lot of money to obtain services from the private sector. As a solution 
to these problems, Rs. 200 million has been allocated to begin the initial work 
required to establish a 16-storey National Heart Unit with more space and 
modern equipment at a cost of Rs. 12,000 million. 
➢ A large percentage of Thalassemia patients suffer from a range of physical 
complications and severe anemia. A high percentage of patients will require 
lifelong blood transfusions or other treatments, including daily iron removal 
therapy. As a result, not only these patients but also their families have to face 
severe psychological, social and economic problems. In this situation, 
Provincial Councils pay allowances of varying amounts, from the Rs. 500 to Rs. 
5,000, to low-income thalassemia patients. We propose to allocate Rs. 250 
million to provide a monthly allowance of Rs. 10,000 each to low-income 
thalassemia patients based on medical recommendations, in lieu of the amount 
paid by the Provincial Councils.

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27 
➢ Demographic and Health Survey (DHS) information is very important for 
understanding the health status of the people and improving overall health 
services, based on data. This survey, which is supposed to be conducted every 
five (5) years, has not been conducted since 2016. This information is very 
important for reporting national health outcomes related to the Sustainable 
Development Indicators and the Universal Health Coverage Index. 
Accordingly, Rs. 570 million has been allocated to conduct this survey. 
➢ We hope to provide continuous health services to the regional population, 
improve disease control and medical administration efficiency. Accordingly, 
we propose to allocate Rs. 1,000 million to relocate the Dambulla and Deniyaya 
regional hospitals to more accessible, secure, more spacious and suitable 
locations. 
 
 
13. Sustainable and Inclusive Development 
Honorable Speaker, 
Community Development Councils (CDCs) are established in every Grama 
Niladhari division to identify the real development needs and opportunities of the 
people. Steps are being taken to plan regional development programmes of the 
Government according to the development needs identified by CDCs. The 
responsibility of creating a prosperous village and a secure life in every aspect is 
entrusted to these CDCs. Through this, we are working to make the people the 
real owners of development. 
Accordingly, in order to implement the integrated rural development programme 
island-wide under the National Campaign for Eradicating Poverty, we propose to 
allocate Rs. 20,750 million in addition to the provisions of Rs. 4,250 million 
allocated for the Praja Shakthi programme, increasing the total allocation to Rs. 
25,000 million.

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28 
14.  Uplifting the Living Standards of Estate Workers  
It is our position that estate workers should be paid a fair daily wage 
commensurate with their service. It is proposed to increase the current minimum 
daily wage of Rs. 1,350 to Rs. 1,550 from January 2026. Furthermore, in addition to 
the salary of Rs. 1,550, it is proposed to pay Rs. 200 as a daily attendance incentive 
by the government. It is proposed to allocate Rs. 5,000 million for this purpose. 
 
15. Regional Development 
The Government expects to actively involve all citizens of the country, especially 
the rural community, in the country's development programmes. We have given 
priority to improving the living standards of people living in underdeveloped 
areas and strengthening social life. For national development to be successful, it is 
essential to improve administrative efficiency, social welfare, infrastructure 
including roads and strengthen economic relations at the provincial and regional 
levels. For this purpose, we allocate more funds than last year to the Provincial 
Councils and local government institutions. 
➢ A special focus will be placed on the development of infrastructure in regional 
administrative complexes.  It is proposed to construct the second phase of the 
administrative complex of Uva Provincial Council, a long-standing 
requirement.  
➢ It is noted that the lack of suitable auditorium facilities in Monaragala and 
Ampara towns for public activities such as conferences, cultural and 
recreational activities, and community meetings hinders community 
engagement. Therefore, it is proposed to allocate Rs. 200 million to the relevant 
Provincial Councils for the preliminary work of constructing a complex that 
includes auditorium facilities. 
➢ It is proposed to provide Rs. 300 million to complete development projects, 
such as the partially completed and halted construction of the Nindavur Urban 
Council building in the Eastern Province after a due feasibility study. 
➢ To enhance daily travel, trade, and expand access to services for rural 
communities, construction of previously started and halted roads and bridges 
will be reactivated, and major junctions will be widened.  Accordingly, Rs. 
24,000 million is allocated for rural roads and Rs. 2,500 million for rural bridges.

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29 
16. Investing in the Silver Economy 
Sri Lanka is undergoing a rapid demographic transition, with the proportion of 
the population aged 60 and over growing faster than the younger population. It is 
proposed to allocate Rs. 10 million to the Ministry of Rural Development, Social 
Security, and Community Empowerment to formulate a policy to make them 
active stakeholders in society. 
 
17.Empowering 
Women: 
Nutrition, 
Safety, 
and 
Economic 
Opportunities 
 
In 2026, we expect to enhance the Thriposha programme and the Monthly 
Nutrition Assistance Programme for Pregnant and Lactating Mothers, and 
ensuring wider coverage and improved delivery of these programmes through 
strengthened community health networks. 
The contribution of the female community to our country's labor force is very 
important. However, the female labour force participation rate remains at a low 
level around 32 percent. This budget has allocated Rs. 240 million to uplift self-
employment, household industries, etc., carried out by women entrepreneurs 
across the island at the Divisional Secretariat level. Under this, efforts will be made 
to provide assistance to women entrepreneurs to start new businesses and 
strengthen self-employment activities. In addition to this, an additional Rs. 200 
million is proposed to be allocated for programmes aimed at the welfare of 
women. 
 
18. Providing Relief to Sri Lankans Abroad 
Our highest net source of foreign exchange is the remittances made by Sri Lankans 
abroad. In appreciation of the contribution made by this group to the development 
of our country, we are introducing a housing loan scheme at concessional interest 
for migrant workers. It is proposed to implement it using the funds of the Sri 
Lanka Bureau of Foreign Employment according to the interest reimbursement 
method.

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30 
Similarly, a contributory pension scheme for foreign workers is being introduced. 
The Bureau of Foreign Employment will carry out the necessary work to 
implement the basic work quickly and within the year 2026. 
Rs. 2,000 million will be allocated from the funds of the Bureau of Foreign 
Employment in the initial phase of these programmes. 
 
19. Mitigating the Human-Elephant Conflict 
The Human-Elephant Conflict results in the loss of about 80 human lives and over 
260 elephants annually. The highest number of incidents are reported in the 
Anuradhapura, Polonnaruwa, and Ampara districts. The Human-Elephant 
Conflict in Sri Lanka poses a serious threat to both the rural and national 
economies. 
➢ Approval has been granted to procure 294 essential vehicles and modern 
communication equipment to enhance the efficiency of the Department of 
Wildlife Conservation. 
➢ An additional Rs. 300 million is already allocated to complete the construction 
of all electric fences in all identified, essential areas. This includes fences that 
are already completed but dilapidated, broken down, partially constructed, or 
planned for construction. 
➢ It is also proposed to provide special training to 5,000 Civil Security Service 
officers and attach them permanently to the Department of Wildlife to monitor 
elephant enclosures and minimize elephant-human conflict. 
 
➢ Rs. 375 million is allocated to provide food allowances and fuel allowances for 
equipment maintenance to Civil Security officers assigned to monitor and 
maintain electric fences. 
 
➢ We have allocated Rs. 80 million for pasture and water source management 
activities to ensure the provision of food and water for elephants. 
 
➢ We propose to allocate an additional provision of Rs. 1,000 million in addition 
to the provisions allocated to the Department of Wildlife Conservation to 
complete the construction of electric fences and other related tasks to control 
elephant-human conflict.

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31 
➢ We propose to allocate Rs. 10 million for research to find long-term, research-
based solutions beyond the construction of electric fences to reduce these 
elephant-human conflicts. 
 
20. Promoting Drama, Performing Arts and Literature 
A meaningful platform has been created to advance Sri Lanka's cultural diversity, 
reconciliation, and inclusive national identity. The Government's policy 
framework emphasizes the importance of education, culture, and inter-
community dialogue in building a compassionate society that respects heritage 
and diversity. 
We propose to allocate an additional Rs. 50 million in addition to the existing 
allocations to promote drama, performing arts and literature as an area of cultural 
enrichment. 
 
21. Promotion of the Media Sector 
➢ Due to mismanagement of media institutions of the Government, their 
administration has collapsed and it has become difficult to even pay the 
salaries of their staff. This has created an environment of constant dependence 
on the Government for their day-to-day operations. Experts in the field have 
been appointed to key positions in these institutions and efforts have been 
made to rebuild them. We believe that the Government should support these 
institutions until they are restored to normal. Therefore, in the 2026 budget, 
Government support will be provided for the operations and essential capital 
expenditures of the Sri Lanka Broadcasting Corporation, Sri Lanka Rupavahini 
Corporation and Independent Television Network. 
 
➢ It is proposed to allocate Rs. 100 million to provide higher education 
scholarships and support for the technical approach required in journalism, in 
order to provide the necessary support for the development of the skills of 
journalists in line with the advancements in the field of journalism and modern 
technology.

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22. Developing Sports Culture 
Developing a sports culture creates a healthy, vibrant, cooperative, and "An 
energetic citizen - Triumphant people" in society. Therefore, Rs. 1,800 million has 
been allocated to promote sports culture among our children and youth by 
expanding opportunities for sports facilities. We propose to allocate an additional 
Rs. 800 million for this purpose. 
Rs. 1,163 million have been allocated to provide facilities for players to participate 
in international sports competitions, second-tier sports pools, international sports 
tournaments, national sports competitions, and high-caliber sports teams to 
provide facilities for about 4,000 participating athletes. 
Under the development of sports infrastructure, Rs. 225 million has been allocated 
in this year's budget for the development of sports complexes in the Mannar and 
Vavuniya districts, and Rs. 150 million for the completion of the Kalmunai Sports 
Stadium. Subsequently, Rs. 150 million has been allocated for the development of 
sports complexes in the Northern and Eastern provinces. 
 
23. Economic Sovereignty and Food Security 
23.1 Agriculture and Livestock Sector 
Honorable Speaker,  
➢ Since a higher price is given for well-dried paddy when determining the 
guaranteed price for paddy, it is expected that paddy drying machines 
equipped with modern technology will be provided to the relevant farming 
companies or cooperative societies. In addition to managing this proposed 
project within the allocated funds under the "Building Production 
Cooperatives and Creating Young Entrepreneurs" programme, it is proposed 
to allocate another Rs. 500 million. 
 
➢ It is proposed to provide Rs. 1,000 million to strengthen the mechanism related 
to the service provided by Sathosa and to improve storage facilities to minimize 
price fluctuations in food crops including onions, potatoes and maize.

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➢ Dambulla Cold Storage, which was constructed at a cost of over Rs. 500 million 
but is not operational due to various technical issues, should be used effectively 
in the agricultural storage. This cold storage facility has a capacity of about 
5,000 metric tons. We propose to provide the necessary provisions of Rs. 250 
million in this budget to complete the construction work that is hindering the 
use of the warehouse and install a solar panel system. Attention needs to be 
paid to a more appropriate methodology for the operation and management of 
this cold storage facility. 
 
➢ Efforts are being made to increase agricultural production in Matale, Kandy 
and other potential areas in the dry zone by using new technologies and 
climate-friendly irrigation technologies. For this purpose, it is proposed to 
provide Rs. 4,000 million for 400 identified irrigation schemes within the 
medium-term budgetary framework, and out of this, it is proposed to allocate 
Rs. 1,000 million to implement 100 irrigation schemes in the year 2026. 
 
➢ Current domestic milk production is sufficient to meet about 40 percent of the 
country's milk requirements, and a significant amount of foreign exchange is 
spent annually on importing milk and milk-related products. To become self-
sufficient in milk, approximately 1,200 million liters of milk must be produced 
annually. The National Dairy Production Programme is designed to reach the 
target of meeting 75 percent of the domestic milk requirement by 2030. 
 
For this, it is expected to implement a programme to improve the breeding, 
nutrition and health of dairy cattle by organizing farmers based on each 
Veterinary Division. For this purpose, we propose to organize farmers and 
increase local milk production, based on the potential of Veterinary Divisions. 
We propose to allocate Rs. 1,000 million for the preliminary work including the 
feasibility study of this project under the "Small and Medium sized Livestock 
Development Programme". 
 
➢ Increasing the number of high-quality breeding animals in the livestock sector 
has been identified as a fundamental need to increase local animal production, 
and this is particularly prominent in the dairy cattle and piggery sectors. 
Therefore, priority will be given in this budget to improve the breeding units

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34 
of several high-quality dairy cows and pig breeds and to cultivate nutritious 
grasses in several selected farms belonging to the National Livestock 
Development Board, through a methodology selected after a proper study. We 
propose to allocate Rs. 1,000 million for this purpose. 
 
➢ It is very important to resume the construction work of the Badalgama Dairy 
Factory of Milko (Pvt) Ltd. The Badalgama Dairy Factory, which was started 
in 2015, has already been stalled, having already spent about Rs. 18,000 million 
of public money. This project, which has been abandoned since 2022, will be 
implemented in line with the Government's policy statement to increase local 
milk production to process milk to a higher standard in order to contribute 
effectively to the national economy in the future. Accordingly, it is proposed to 
allocate Rs. 3,000 million for the basic works required to complete the 
remaining works of the factory, in particular, the rectification of machinery and 
buildings and the renovation of the factory in order to commence production. 
 
We propose to complete the work of the Badalgama Dairy Factory as soon as 
possible and relocate the current Narahenpita milk factory to this location. 
 
Honorable Speaker, while allocating funds for development of this dairy 
factory, we expect to conduct an investigation into the corruption and waste of 
public funds that has occurred in this regard. 
 
23.2  Strengthening Coconut Cultivation 
➢ Sri Lanka's annual coconut production is about 2,800 - 3,000 million nuts, of 
which about 70 percent is used for domestic consumption and the rest for the 
coconut and coconut-based products industry. The current annual coconut 
production is sufficient to meet domestic consumption; however, it is not 
sufficient to meet industrial demand.  
 
Therefore, as a long-term strategy to increase coconut production, we have 
allocated Rs. 600 million for the further expansion of coconut cultivation in the 
already established Northern Coconut Triangle based on the recommendations 
of the Coconut Research Institute.

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➢ Although coconut landowners in commercial coconut cultivation have 
adopted fertilizer use and moisture conservation methods to some extent, the 
interest shown by coconut landowners with less than 5 acres in them remains 
relatively low. Despite the Coconut Cultivation Board has implemented a 
programme to use mulch for soil and moisture conservation covering about 
4,000 acres of land cultivated with coconuts at present, Coconut cultivation 
needs to be further expanded to achieve its desired goals. 
 
Therefore, in order to achieve the expected export targets by achieving the 
medium-term productivity goals of the coconut sector, it is proposed to 
allocate Rs. 2,500 million to implement a structured programme to motivate 
coconut growers who own less than 5 acres out of the estimated 447,000 acres 
currently under coconut cultivation. 
 
 
24. Fisheries Industry 
24.1 Development of Infrastructure Facilities in Fishery Harbours 
➢ Focusing on providing necessary assistance for safe and quality fishing vessel 
operations, improving efficiency, and minimizing post-harvest losses, we have 
allocated Rs. 300 million for the renovation, rehabilitation, and upgrading of 
existing infrastructure facilities at selected fishery harbours, including 
Beruwala, Ambalangoda, Kudawella, and Nilwella. 
 
Further, in addition to the provisions already allocated for further 
improvement of essential infrastructure facilities in fishery harbours, it is 
proposed to allocate an additional Rs. 1,000 million. 
 
24.2 Providing Modern Technology to Enhance the Safety of Fishermen 
➢ Provisions are allocated for the improvement of the Valaichchenai Fishery 
Harbour with the objectives of providing enhanced services, ensuring safe 
maritime navigation, and reducing congestion in the harbour. Accordingly, Rs. 
350 million has been allocated to empower the fishing community by 
strengthening the operations of the Valaichchenai Fishery Harbour to ensures 
uninterrupted operations.

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➢ To ensure the safety of fishermen, it is proposed to allocate Rs. 100 million to 
provide life-saving equipment for fishermen. Many countries in the world are 
using modern technology to easily identify fishing spots. Providing that 
technology to our fishermen will lead to the advancement of the industry. 
 
24.3 Increasing Fish Harvest 
➢ Rs. 500 million has been allocated for the development of infrastructure at the 
wharves to improve the living standards of the fishing community by 
obtaining a qualitative and quantitative fish harvest through minimizing post-
harvest losses. 
 
➢ It is proposed to allocate Rs. 100 million to develop a system for identifying 
fish grounds using satellite technology and communicating relevant 
information efficiently to the fishing community. 
 
➢ Rs. 100 million has been allocated for the development of aquaculture 
development centers to increase the supply of fish seeds and improve the 
availability of quality freshwater fish. 
 
24.4 Promoting the Blue Economy 
➢ Sri Lanka’s blue economy plays a vital role in national prosperity and 
sustainable development. Sri Lanka’s strategic location in the Indian Ocean 
provides a unique opportunity to harness our marine and coastal resources for 
sustainable economic growth and also provides an opportunity to emerge as a 
regional hub for blue economy investments. 
 
➢ Rs. 100 million has been allocated to conduct a detailed study on the economic 
benefits that can be achieved through marine and coastal fisheries, marine 
aquaculture, ecotourism, diving-related activities, marine biotechnology and 
development of seabed resources in the Exclusive Economic Zone (EEZ).

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25. Irrigation and Water Supply 
25.1 Irrigation 
➢ Rs. 91,700 million has been allocated to uplift irrigation. We expect to achieve 
the Government's priority objectives such as increasing domestic agricultural 
production, regional development, and job creation by resuming temporarily 
suspended projects.  
 
➢ Accordingly, Rs. 50 million has been allocated in this budget to resume the 
work of the Mundeni Aru project by commencing the initial work. 
 
➢ Further, we expect to engage in discussions with development partners to 
secure the required financial provisions to commence the Talpitigala Reservoir 
Project and the Kumbukkan Oya Reservoir Project. 
 
➢ Also, Rs. 5,000 million has been allocated to expedite the Lower Malwathu Oya 
Multipurpose Development Project, which will enable the cultivation of new 
lands related to the Yodha Wewa in the Northern Province, increase 
productivity of existing lands, fulfill drinking water needs, and provide a 
solution to the flood in the Mannar District. 
 
➢ Rs. 6,500 million has been allocated for the restoration of other canal systems, 
including urgent initiation of restoration work of the sluice (Sorowwa) of 
Senanayake Samudraya, as well as restoration of Gal Oya, Rajanganaya, 
Huruluwewa, and Minneriya reservoirs. 
 
➢ Rs. 8,350 million has been allocated for the improvement and rehabilitation of 
small tanks, canals and sluice systems. Under this programme, it is expected to 
renovate 650 tanks and nearly 350 kilometers of canals. 
 
25.2 Urban Flood Control 
➢ Having recognized the need for a sustainable solution to urban flood control, 
attention has been focused on short, medium, and long-term programmes. In 
particular, immediate solutions are required for recurring flood threats in cities 
such as Colombo, Gampaha, Galle, Ampara, Mannar, and Puttalam. As a short 
and medium-term solution, it is proposed to prepare an integrated plan in

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collaboration with the Department of Irrigation, Urban Development 
Authority, Sri Lanka Land Development Corporation, and Local Government 
Institutions, and to implement it within the medium-term budgetary 
framework. In this budget, Rs. 250 million has been allocated for the 
preparation and implementation of this plan. 
 
➢ Due to the absence of a proper flood management plan, people in Ratnapura, 
Kalutara, and Matara have faced severe difficulties. Therefore, there is a need 
to conduct a formal feasibility study on flood management of the Gin and Kalu 
rivers. We expect through this proposed programme to provide additional 
water to the Walawe basin and also to provide a suitable solution to the existing 
flood problem in Ratnapura and Kalutara districts. It is proposed to allocate 
Rs. 500 million for conducting these studies. 
 
➢ A saltwater barrier constructed in 2022 across the Nilwala River in Matara has 
caused several issues. This situation has significantly impacted the livelihood 
of the people in this area as well as those who are engaged in agriculture. In 
this regard, a study is currently being conducted. Rs. 1,000 million has been 
allocated to implement the necessary solutions based on the findings of that 
study. Additionally, Rs. 1,200 million has been allocated for the prompt 
payment of compensation for paddy lands that have been damaged and cannot 
be cultivated due to this flood. 
 
➢ It is proposed to allocate Rs. 100 million to provide an immediate practical and 
permanent solution to prevent coastal erosion associated with the Kalu River 
lagoon, restore fisheries activities hindered due to silting and blocking the 
estuary from sand deposition, and revitalize the tourism industry in the 
Kalutara coastal area. 
 
➢ It is proposed to allocate Rs. 500 million to the Ministry of Transport, 
Highways, and Urban Development to conduct the initial study necessary for 
the construction of the Kiran Bridge and the Pondukalchenai Bridge to 
minimize flood risk in the Batticaloa District.

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25.3. Improvement of Drinking Water Supply 
The drinking water supply has so far met only 62 percent of the requirement. The 
lack of access to clean drinking water has become a major problem facing the 
people. New water supply projects are being initiated and the ongoing projects are 
being completed expeditiously. Rs. 85,700 million has been allocated for the 
implementation of drinking water supply projects as well as community water 
supply projects covering districts such as Gampaha, Kalutara, Anuradhapura, 
Kandy, Jaffna, Kilinochchi and Kurunegala. Furthermore, steps are being taken to 
implement the necessary infrastructure facilities for drinking water supply in 
collaboration with the private sector.  
➢ To meet the urban drinking water demand in Colombo District by 
constructing a new water supply system in Ambatale, to update and 
provide new water supply to Kolonnawa and Nugegoda-Jubilee post, and 
to construct a new water project in Lunugamvehera in the Hambantota 
District to supply drinking water to people affected by water scarcity and 
to support the upliftment of production-oriented industries, Rs. 1,000 
million has been allocated. 
 
➢ By 2040, it is estimated that the daily water requirement for Hambantota 
development will be around 300,000 cubic meters. At present, the daily 
water supply in the area is approximately 90,000 cubic meters, supplied 
through water sources including Lunugamwehera Reservoir, Walawe 
River, Kirindi Oya, Kachchigal Ara, Kirama Oya, and Urubokka Oya.  
According to the preliminary studies that have been conducted so far, 
indicate that an additional 100,000 cubic meters of water per day can be 
obtained in the short term by investing and developing these water sources, 
which will support to meet future water demand. In this regard, a full 
feasibility study is being conducted, to promptly identify and implement 
development needs. 
 
26.Sustainable Infrastructure Development 
26.1 Public Transportation 
The current public transportation sector is facing numerous challenges. The 
inefficiency of the overall transportation system, the lack of adequate facilities, and 
the insecurity within the transport network are causing passengers to further

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distance themselves from public transport. Achieving the government's long-term 
vision of " A good public transportation service - Speedy destination" requires the 
creation of an efficient and sustainable passenger transportation system, which is 
a key priority of the current government. For this purpose, Rs. 67,200 million has 
been allocated in this budget. Among them, the main projects to be implemented 
include the following: 
➢ To strengthen the public transportation sector, 600 buses are scheduled to 
be added to the long-distance service fleet by the Sri Lanka Transport Board 
(SLTB). Rs. 3,600 million has been allocated for the initial implementation 
of this project. 
 
➢ Furthermore, Rs. 2,062 million has been allocated for the next year to 
replace the worn-out engine units of 307 buses belonging to the Sri Lanka 
Transport Board (SLTB). 
 
➢ We would also like to mention that Rs. 790 million has been allocated for 
the procurement of necessary new tools, machinery, and equipment 
required for the depots and workshops of the Sri Lanka Transport Board 
(SLTB). 
 
➢ With the objective of enhancing the efficiency and passenger-friendliness of 
the railway service, Rs. 3,300 million has been allocated for the initial 
activities related to the procurement of five new Diesel Multiple Units 
(DMUs) for the Sri Lanka Railways Department. Furthermore, preliminary 
work on the digitalization of the railway service, including the introduction 
of an electronic ticketing system for rail passengers, has already 
commenced. 
 
➢ Further, it has been observed that private sector service providers have 
reduced their bus operations on certain routes across the island due to 
insufficient revenue. As a result, passengers in these rural areas experience 
significant hardships. Therefore, it is proposed to formulate an appropriate 
programme to systematically identify such routes and ensure the provision 
of a sustainable transport service. As an interim measure, an additional 
allocation of Rs. 2,000 million is proposed for the year 2026.

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26.2 Road Development 
The economic crisis experienced by the country led to the suspension of numerous 
road development projects, resulting in various complications. Measures have 
been taken to resolve these issues and recommence the implementation of those 
projects. For overall road development in the year 2026, Rs. 342,000 million or Rs. 
342 billion has been allocated. This includes the following projects: 
➢ Central Expressway – Phase I 
A decision has also been taken to provide financial facilities for the 
construction of the Kadawatha-Mirigama section of the Central 
Expressway, among the expressways that were currently on hold. 
Development work on the Kadawatha-Mirigama Expressway section has 
already commenced and Rs. 66,150 million has been allocated for the year 
2026. 
 
➢ Central Expressway – Phase III 
The construction of the Pothuhera–Rambukkana section of the Central 
Expressway – Phase III from Pothuhera to Galagedara is scheduled for 
completion in the first quarter of 2027. Rs. 10,500 million has been allocated 
for this purpose. Furthermore, it is proposed to commence construction 
work on the Rambukkana–Galagedara section of the same phase using 
domestic funding, taking into account the fiscal space. For this purpose, an 
allocation of Rs. 20,000 million is proposed, comprising both the remaining 
provisions from the Road Development Authority’s debt repayment arising 
from the full settlement of a portion of future loan obligations within this 
year and an additional budgetary allocation. 
 
➢ Katugastota–Galagedara Road Section 
Furthermore, the necessary feasibility studies for the widening of the 
Katugastota–Galagedara road section are scheduled to commence next 
year. In parallel with the construction of the Kandy Multi-Modal Transport 
Centre, provisions have been made in this budget to widen and upgrade 
several access roads leading into Kandy city. These developments are 
expected to help reduce traffic congestion within the city to a considerable 
extent.

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➢ Kurunegala–Dambulla Proposed Expressway 
Land acquisition activities for the proposed Kurunegala–Dambulla 
Expressway are currently in progress. Rs. 1,000 million has been allocated 
to complete the land acquisition process for this project. 
 
➢ Ruwanpura Expressway – First Section of Kahathuduwa to Ingiriya 
The construction of the 25-kilometre section of the Ruwanpura Expressway 
from Kahathuduwa to Ingiriya had been undertaken in an irregular and 
fragmented manner, and work was temporarily suspended with the onset 
of the economic crisis. As a result of these partially completed 
constructions, the local communities have been facing several economic, 
social, and environmental challenges. Accordingly, it is proposed to 
reassess the improvement of the existing access road from Kahathuduwa to 
Ingiriya, based on a review of the feasibility study conducted in 2018 and 
further analysis of the information derived from the study. Land 
acquisition activities for this expressway section continue and Rs. 1,500 
million has been allocated for this purpose. 
 
➢ Feasibility Study on the Construction of the Link between the Port Access 
Elevated Highway and the Marine Drive Extension (Phase II) 
With the objective of enhancing road connectivity to the Colombo Port and 
the Port City, an elevated highway project is currently under construction. 
To address the traffic congestion expected around the Lotus Roundabout 
area and its surroundings near Galle Face, following the integration of this 
expressway into the national road network, Rs. 330 million has been 
allocated to conduct a feasibility study on constructing a link between the 
Port City end of the Port Access Elevated Highway and the Marine Drive. 
 
26.3 Implementation of a Road Safety Programme to Minimize Traffic 
Accidents 
It has been observed that road accidents have increased rapidly in recent times, 
with a significant proportion resulting in fatalities. According to the Sri Lanka 
Police Road Accident Report, a total of 24,589 road related accidents were reported 
in 2024, of which 2,262 were fatal, resulting in the loss of 2,368 lives. These 
accidents have not only caused immense hardship to the public but have also led 
to considerable economic losses as a whole.

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It is proposed to allocate an additional Rs. 1,000 million, supplementary to the 
provisions already set aside, for the implementation of a comprehensive road 
safety programme. This programme aims to enhance road safety infrastructure 
through the integration of safety strategies into road design and the improvement 
of unsafe road sections. 
 
27. Energy Sector 
27.1 Green Energy 
Honourable Speaker, 
Since our Government assumed power in September of last year, we have taken 
decisive measures to introduce a competitive bidding system for government 
procurements, with the objective of ensuring the most favorable prices for 
consumers. A major achievement of this effort was clearly visible in the recent 
awarding of power generation projects. The previous administration had awarded 
two tenders for a total capacity of 500 MW at a rate of US cents 8.26 per kilowatt-
hour, without following a proper procurement process and without even factoring 
in the cost of a substation for connecting the wind power capacity. 
Honorable Speaker, we recently, on 28th October 2025, opened two tenders for 
two power projects in Mullikulam and I am very proud to report to this House on 
the remarkable results achieved. Accordingly, bids were submitted for the Phase 
I, 50 MW power plant at a price of US cents 3.96 per unit and for the Phase II, 50 
MW power plant at a price of US cents 3.77 per unit. In addition, the Mannar Phase 
1 Expansion Project, a 50MW project, was awarded at an impressive price of US 
cents 4.65 per unit. 
 
27.2 People - Centric Energy Transition 
As a major step towards a People-centric Energy Transition, the Sri Lanka Electricity 
Act was amended and four separate fully State-Owned Companies were established to 
handle the functions of generation, transmission, distribution and system control with 
the aim of improving the national economy and the living standards of the people. 
According to the Long-Term Generation Plan 2025 - 2044 published by the Ceylon 
Electricity Board, it is estimated that the electricity requirement will increase by about 
60 percent in the next decade.

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We have been debating for decades about how to generate electricity. Plans were 
outdated, procurement was not done properly, construction was delayed. The 
electricity generated was mostly used only to provide light, run a fan, and run an AC, 
and while it could be argued that it would improve the standard of living of the people, 
the weaknesses in powering electricity consumption for economic activities remained. 
We now focus on entering new areas to revitalize the national economy by utilizing 
electricity. Namely; 
1. Data Centres 
2. Transport Electrification  
3. Green Hydrogen  
4. Green Ammonia 
We need to develop electricity consumption that targets new economic opportunities. 
To achieve this, electricity transmission and distribution systems need to be 
developed using modern, smart technology. 
To empower this work, an Integrated Economic Development Framework will be 
established by integrating Energy, Digital, and Transport. 
It is expected to introduce Energy Transition Act in next year with the aim of 
establishing the necessary legal framework for this purpose.  
 
28. Effective Utilization of Underutilized Buildings and Structures 
It is currently reported that there are more than 2,700 structures built by various 
government agencies that are currently abandoned or partially completed and not 
being used properly. They can be identified as educational buildings, hospitals, 
textile industry buildings, vocational training centres, community halls, service 
centres and multi-purpose buildings, warehouses, cultural centres and other 
buildings. 
We are studying the possibility of improving these underutilized buildings or 
structures and using them for income-generating projects such as hotels, business 
centres, factories or other purposes through public-private partnerships and 
accordingly, we are preparing the necessary plans to effectively utilize these 
resources.

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Accordingly, efforts are being made to provide value for these investments by 
ensuring that these structures, which were built at high cost without proper 
feasibility studies in the past, are not letting deteriorate and ensuring optimal use. 
 
29. Supply Chain Development 
 
29.1 Infrastructure Developments to Improve Container Operations Within the    
Port 
Sri Lanka has significant potential to become a regional leader in Port Logistics, 
leveraging its strategic location. In the next year, we expect to enhance the capacity 
of the Colombo Port and enhance operational efficiency through major 
development initiatives, including the Western Container Terminal Phase II 
project with the support of the Asian Development Bank, feasibility studies for the 
proposed Ports Logistics Centres with the support of the World Bank, and the 
proposed Colombo North Port Development Project. In addition, the 
Kerawalapitiya Customs Verification Centre and Trade Facilitation Centres in the 
Bloemendal area will be established. 
In addition to developing the necessary infrastructure to positioning the ports in 
Sri Lanka as a leading logistics hub in the region, digitalization and automation of 
port operations are being enhanced to ensure seamless and efficient port 
operations, including the implementation of the Port Community System as an 
integrated data management system. 
 
29.2 Infrastructure Development to Make Airport Operations more Efficient 
(Air Cargo Centre) 
The second phase of the airport development, which was halted due to economic 
downturns and other factors, will begin construction in early 2026. JICA has 
already agreed to provide financial facilities for this purpose. 
Bandaranaike International Airport is on its way to becoming a regional hub for 
air cargo, with ongoing development activities, including the expansion of 
SriLankan Airlines' cargo terminal and cargo handling facilities.

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However, to overcome further challenges, particularly in the cold chain system, 
lack of sufficient storage capacity and outdated systems, and to achieve the full 
potential of the air cargo sector and to ensure operational efficiency and financial 
sustainability, it is proposed to provide advanced facilities such as cold storage 
required to handle air cargo to the newly constructed cargo terminal through a 
Public Private Partnership (PPP) model. 
 
30. A New Approach to Urban Development 
• Urban development projects have been implemented informally and without 
prioritization, without proper study and planning, and due to that have not been 
able to achieve the desired results. Therefore, the city development process will be 
conducted according to a formal plan with proper studies effective from 2026. 
Efforts are being made to establish an efficient, sustainable, tourists and investment-
attractive city network. Rs. 2,000 million have been allocated to commence 
preliminary work to identify the feasibility of 10 identified cities across the island, 
including Jaffna, Eheliyagoda, Batticaloa, Chilaw, and Matara, and this amount will 
be released based on requirement and progress. 
 
• In order to reduce the current congestion at the entrance to Matale city, necessary 
measures will be taken to expand the number of lanes to 4 lanes, acquire the 
necessary land for this purpose, and prepare a city plan. It is expected to prepare 
the necessary city plan to provide appropriate solutions to the heavy traffic 
congestion in Hatton City in 2026, and also propose to provide a short-term, rapid 
solution to reduce the existing congestion. For this purpose, we propose to allocate 
Rs. 500 million of this Budget. 
 
• While paying a special attention to the city of Ratnapura, it is proposed to relocate 
the government quarters located in the old town to the new town area. We expect 
that this placement will be useful in fulfilling the long-term residential needs. For 
this purpose, it is proposed to allocate Rs. 500 million from this budget under the 
Urban Development Authority.

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30.1 Waste Management Facilities for Local Government Institutions 
With the increasing trend of urbanization, proper solid waste management has become 
a challenge for local governments. Due to improper disposal of waste, environmental 
and health impacts, animal distress and public complaints are becoming increasingly 
serious day by day. 
In response to this problem, it is proposed to allocate funds from the budget 2026 to 
provide local governments with environmentally friendly, cost-effective and hygienic 
solid waste transport equipment such as compactors, tractors and trailers. The 
procurement process has already begun to purchase 700 machines with an allocation 
of Rs. 8,000 million from the remaining capital expenditure in 2025. 
Accordingly, Rs. 900 million has been allocated for the implementation of solid waste 
management under the Ministry of Public Administration, Provincial Councils and 
Local Government to provide vehicles and equipment for the systematic disposal of 
solid waste and maintenance. 
30.2 Meeting the Expenditures of Local Government Institutions 
(Regional Development) 
Local Government Institutions are institutions with independent powers, but they have 
been made dependent on the General Treasury even for the payment of salaries. In 
providing provisions for the payment of salaries from the General Treasury, it is 
proposed to introduce a new system instead of the existing system of providing 
provisions by reducing the percentages of 20 and 40 percent of the estimate. 
Accordingly, based on the study recently conducted by the Ministry of Public 
Administration, Provincial Councils and Local Government, it is proposed to initiate a 
formal system of providing government contribution to each local government 
institution, taking into account the income and actual expenditure of the local 
government institutions. 
In doing so, if a budget deficit arises in a local government institution, provisions will 
be provided for capital expenditure to cover it. 
Rs. 2,500 million for the strengthening of local government institutions, improvement 
of infrastructure facilities in local government institutions, and revenue generation 
programs has been allocated for this purpose.

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30.3 Introducing Services and Facilities for the Care of Street Dogs and 
the Burial/Cremation of Pets 
With the changing lifestyles in urban and semi-urban areas, the trend of having 
pets is growing rapidly. At the same time, burial and cremation of pets when they 
die remains a problem. The demand for respectful and environmentally 
responsible alternatives has also increased.  
It has also been recognized that there is a need to develop a system to take care of 
stray dogs and pets in urban areas in collaboration with the local authorities. 
As a consideration to this need, it is proposed to allocate Rs. 100 million to 
implement a pilot project in the local authorities of Kesbewa and Piliyandala areas, 
with the aim of encouraging the provision of services for the burial of pets, 
cremation and care of stray animals. 
 
31. A Safe Home for Every Individual 
"Shade for the head is peace for the mind," every citizen believes. Having a decent 
home is a basic human right for every human being, regardless of their status. 
There are people in this country who suffer and sigh for a house throughout their 
lives. With the hope of bringing comfort to the lives of the citizens of our country, 
we are embarking on the process of fulfilling the dream of a house. 
 There are many factors that leads to housing problems. Among them, there are 
various reasons such as poverty, insufficient income, scarcity of land, increase in 
construction costs, migration, informal urbanization, displacement and natural 
disasters. In 2026, a housing development programme with a new approach is 
expected to be implemented, encompassing all social groups facing housing 
issues. Under this programme, construction work on 27,000 new homes including 
those currently under construction, is expected to be completed.

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31.1 Solving Housing Problems Arising out of Low Income Communities and 
Urbanization  
➢ As a solution to the housing problems of low-income families, "A Place of 
your own – A Beautiful Life" housing programme will be implemented in 
several phases from next year onwards, under which it is expected to 
construct 70,000 houses in the medium term. For this purpose, it is 
proposed to allocate another Rs. 3,000 million in addition to the Rs. 7,200 
million allocated for the construction of 10,000 houses in 2026.   
 
 
➢ Under the Urban Regeneration Project implemented for the people in areas 
identified as ‘Urban Estates' or urban settlements with low amenities in 
Colombo and its suburbs, Rs. 15,000 million has been allocated for the 
construction of houses in Applewatta, Madampitiya, Fergusson Mawatha, 
Obeysekarapura, Stadiumgama, Colombage Mawatha and Torrington 
Place for 2026. 
 
➢ Furthermore, 1,996 houses are being constructed in Moratuwa, Peliyagoda, 
Dematagoda, Maharagama and Kottawa under the assistance of the 
Chinese government and Rs. 6,500 million has already been allocated for 
this purpose. Among those houses, arrangements are also being made to 
provide housing for journalists and artists. 
 
➢ The conditions of the old apartment complexes built by the government are 
very deplorable and Rs. 1,180 million has been allocated to renovate them.  
 
➢ Rs. 840 million has been allocated to resettle unauthorized settlers who have 
been an impediment to the development of the Kelani Valley Railway in 
other suitable places. 
 
31.2 Provision of Housing for the Malayagam Community 
Rs. 4,290 million has been allocated with the assistance of the Government of India, 
for the construction of 2,000 houses to upgrade the housing and infrastructure 
facilities of the Malayagam Estate workers living in Central, Uva, Sabaragamuwa, 
North Western and Southern Provinces. Further, a sum of Rs. 1,305 million has

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been allocated for the completion of work on 943 houses currently in the Northern 
and Southern Provinces with the assistance of the Government of India.  
31.3 Provision of Houses for People Displaced by Natural Disasters  
About 9,000 rural and estate family units living in areas made vulnerable due to 
landslides and other environmental issues have been identified. In the next three 
years, it will be imperative to provide safe housing for these families. An 
additional Rs. 2,000 million is proposed to be allocated for the construction of 
houses for 1,200 such families this year,  in addition to the Rs. 1,000 million already 
allocated. 
31.4 Provision of Housing for Internally Displaced Communities  
The current allocation of Rs. 3,850 million for the construction of 2,500 houses for 
families who do not own any houses due to the conflict in the Northern and 
Eastern provinces will be increased to Rs. 5,000 million. 
31.5 Housing Assistance for Resocialization and Child Care   
We have embarked on a new journey by introducing a special programme in the 
Budget 2025, providing a grant to young people who have grown up in children's 
detention centers to build a stable and safe home, giving them the strength they 
need to rebuild their lives. Strengthening this initiative further, we propose to 
provide a financial provision of Rs. 2 million to those who have lived and 
socialized in children's detention centers at any stage of their lives and to families 
of children at risk identified by the National Child Protection Authority, to 
purchase a land and build a house, build a house on land they own or renovate 
existing houses. Accordingly, we propose to allocate Rs. 2,000 million for this 
purpose. 
 
32. Modernization of the Public Service 
To achieve future achievements economically, socially and culturally, we 
recognize the necessity of a strong public service for our country. However, at 
present, the public service bears a relatively high-cost burden for the provision of 
public services. Politicized recruitment to the public service, institutions that have 
historically completed their functions, and various institutions that have been 
established for the same functions have contributed to this. We are taking steps to

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properly evaluate the essential services that the government should provide and 
close down government institutions that have completed their functions, merge 
various government institutions that perform the same function, and reorganize 
outdated objectives according to new objectives. We have initiated steps to close 
down 33 such institutions that do not perform any commercial, regulatory or 
administrative activities. Further, non-commercial institutions that have deviated 
from the original purpose of their establishment and are not suitable for the 
current context have also been identified and are preparing to close them. 
The above State-Owned Enterprises do not contribute to the national economy or 
service provision, and their financial records are very difficult to find, and due to 
legal issues regarding unsettled liabilities and asset ownership, a final decision has 
not been taken on this matter. A unit has already been established under the 
Ministry of Finance to resolve these issues and expedite the process.  
Based on the recommendations made on State-Owned non-commercial 
institutions, 21 institutions will be reorganized to consolidate the same functions, 
14 institutions in the research sector will be merged to establish one national-level 
institution, 9 institutions that are currently not operating in a commercial model 
will be converted into financially independent institutions, and 13 institutions will 
be liquidated as the objectives for which they were established at that time are no 
longer needed at present. 
32.1 Regularization of Recruitment in the Public Service 
The public service mechanism has been completely paralyzed due to the lack of 
formal recruitment for vacancies in the public service for many years. Therefore, 
after a formal study conducted by the Committee to Review the Recruitment 
Process and Manage the Number of Employees in the Public Service, established 
under the chairmanship of the Prime Minister, approval has been given to recruit 
nearly 75,000 people under a proper system. This includes positions such as 
technical officers, law enforcement officers, revenue officers, etc. that are required 
to maintain essential public services. Also, from now on, all recruitments, 
promotions and other tasks in the public sector will be carried out only in 
accordance with the prescribed examinations and service regulations, free from 
political interference, to provide equal opportunities to the youth.

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 32.2 Increasing Digital Access in Government Institutions 
The complex procedures of government institutions that directly provide public 
services should be simplified (Business Process Reengineering) and those facilities 
should be provided under digital methods expeditiously. For this purpose, it is 
proposed to allocate another Rs. 1,000 million in addition to the provisions 
currently allocated for applications in line with the digitalization program (Digital 
Blue Print) already prepared by the government. 
32.3 Providing Vehicles Required for Government Institutions/Machinery 
Required for Provincial Government Institutions 
The government’s current fleet of vehicles and machinery is inadequate and a 
significant portion of the existing vehicles and machinery are obsolete, resulting 
in substantial expenditures on repairs and maintenance. This situation has become 
a significant obstacle to the continuation of the development activities that the 
government is expected to achieve. Considering this situation, the government has 
decided to purchase a number of vehicles and machinery essential for government 
institutions, as well as vehicles to be provided on the basis of return after the end 
of the parliamentary members’ term. For this purpose, it is proposed to allocate a 
total of Rs. 12,500 million as the primary requirement. 
32.4 Settlement of Outstanding Statutory Payments of Government Institutions 
Due to the lack of proper management or financial discipline in recruiting 
employees for State Owned Enterprises, which are used as places to provide jobs 
to supporters for political gain, numerous state institutions have become a huge 
burden on the people, are in debt to banks, and are unable to pay their Employees' 
Provident Funds, Employee Trust Funds, and tax payments. 
1. Lanka Sugar Company (Private) Limited 
2. Janatha Estates Development Board 
3. Sri Lanka State Plantations Corporation 
4. Sri Lanka Rupavahini Corporation 
5. Ceylon Fisheries Corporation 
6. National Livestock Development Board 
7. Elkaduwa Plantations Limited 
8. Sri Lanka Broadcasting Corporation 
9. North Sea Limited 
10. Ceylon Ceramics Corporation

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A total of Rs. 11,000 million is required to settle the outstanding arrears of statutory 
allowances such as Employees' Provident Fund (EPF), Employees' Trust Fund 
(ETF), Gratuity Allowances and taxes of 10 State owned Enterprises. 
It is proposed to pay these unpaid statutory payments in phases and to allocate 
Rs. 5,000 million for the year 2026. It is expected that this will ensure the payment 
of the outstanding Employees' Provident Funds and Employees' Trust Funds of 
the current employees of these institutions as well as the payment of the employee 
gratuity entitlements of the retired employees and to restructure their balance 
sheet liabilities. 
32.5 Settlement of Treasury Guarantees and Letters of Comfort Issued by the 
Government to Public Enterprises 
Treasury guarantees or letters of Comfort have been issued to state banks for the 
state-owned enterprises to obtain loans. Due to long term losses and financial 
crises, such enterprises are unable to repay these loans. These obligations which 
will be in effect until 31.12.2026 will be settled during this year considering as an 
urgent need.  
32.6 Payment of Government Contributions for the Interest Paid to Senior 
Citizen Accounts  
Although an additional interest of about 15 percent was given to the savings of 
senior citizens, the outstanding amount that should have been paid to the banks 
in 2022 and 2023 but has not been paid so far is being settled. For this, from the 
interest to be borne by the government (from the government contribution), the 
unpaid amount of Rs. 10,000 million has already been paid in 2025, and the 
remaining outstanding amount of Rs. 45,700 million is also being paid in full this 
year.

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33. Salaries and pension in the public sector 
33.1 Establishment of a Salaries and Pensions Commission 
It is our responsibility to manage salary and pension policies in a sustainable 
manner. Considering the salary anomalies that have arisen over the years, and the 
challenges to public financial management, a Salaries and Pensions Commission 
is being established to provide solutions to the problems of public employees and 
pensioners regarding salaries and allowances. 
33.2 Amendment of the Condition of the Appointment Letter Regarding the 
Entitlement to Contributory Pension Benefits 
All government officers recruited into the public service on or after 2016.01.01 have 
mentioned the entitlement to contributory pension benefits in the appointment 
letters issued. However, if such an employee retires, it is not practical to consider 
them outside the existing pension scheme. The clause regarding pension 
entitlement is being removed from the appointment letters and their entitlement 
to the existing pension scheme is confirmed. 
33.3 Second Phase of Public Sector Salary Increase 
An allocation of Rs. 110 billion has been provided for the implementation of the 
second phase of the salary revisions made in 2025. Accordingly, these salaries will 
be paid to all public servants commencing from January 2026. 
33.4 Second Phase of Pension Anomaly Rectification for Retirees Before 2020 
In the second phase of pension revision, the pensions of those who retired before 
2020 will be revised based on the salary structure of 2019. An amount of Rs. 20,000 
million has been allocated for the payment of this revised salary from July 2026. 
33.5 Providing Housing and Property Loans to Public Servants at Concessional 
Interest Rates 
The property loan scheme provided to public servants is expected to be activated 
under a new structure to provide loans up to Rs. 50 lakhs. In that case, we propose 
to allocate Rs. 500 million to provide loans at 4 percent concessional interest rate 
up to the initial Rs. 30 lakhs and at 2 percent concessional interest rate from Rs. 30 
lakhs to Rs. 50 lakhs.

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33.6 Expanding the Coverage of Health Benefits under the Agrahara Scheme 
Although public servants receive certain concessions under the Agrahara 
Insurance Scheme currently in operation for public servants, in order to ensure 
that the benefits provided to employees are remained at a stable level due to the 
minimum employee contribution of Rs. 125, we propose to increase the 
contribution amount of Rs. 125 by another Rs. 75 and the monthly contributions of 
Rs. 300 and Rs. 600 by another Rs. 150. 
33.7 Increase in Festival Advance 
It is proposed to increase the interest-free festive advance of Rs. 10,000 provided 
to government employees to Rs. 15,000. 
33.8 Distress Loan Advance 
In line with the increase in the salaries of public servants, we have taken steps to 
increase the amount of distress loan advances that they can obtain at an interest 
rate of 4.2 percent from Rs. 250,000 to Rs. 400,000. To ensure that these advances 
can be obtained within a short period of time without any disruption, Rs. 10,000 
million has been allocated for the advance account limit of public servants. 
33.9 Increase in Allowances for Teachers Engaged in Remote Service and 
Allowances for Principals  
Since the allowances paid to teachers working in schools in remote areas have not 
been increased for 20 years, we propose to increase the allowance by Rs. 1,500 to 
motivate those teachers. 
In recognition of the administrative responsibilities and accountability of 
principals in achieving educational goals, we propose to increase the principal 
allowance paid to principals serving in the position of principal by Rs. 1,500 and 
to allocate Rs. 1,000 million to increase the achievement of educational goals. 
33.10 Increasing the Allowance of Gatekeepers at Unsafe Railway Crossings 
The frequent accidents at unsafe railway crossings result in a significant number 
of deaths annually, with a significant number of people becoming permanently 
disabled. As remedial measures to this situation, about 1,000 gatekeepers have 
been employed. We propose to allocate Rs. 250 million to increase the minimum 
allowance currently paid to them from Rs. 7,500 to Rs. 15,000 per month for an 
eight-hour shift.

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33.11 Formalization of Permanent Appointments for Employees Engaged on 
Temporary, Casual, Substitute, Contract, or Concessionary Basis  
It has been reported that, due to previous governments not formally granting 
permanent appointments to employees recruited on a temporary, casual, 
substitute, contract, or concessionary basis, approximately 9,800 employees 
receiving only minimum wages are currently serving in various institutions within 
the public sector. 
Although permanent appointments have been given to only a portion of these 
employees on various occasions, these employees have been denied the 
opportunity for regularization. 
The government confirms that recruitments to the public service in an irregular 
manner over a long period of time will not be made under our government in the 
future, and we acknowledge the need to regularize the services of these employees 
who have already been recruited and have not been given proper service 
conditions. Accordingly, It is proposed to grant permanent appointments to all 
employees currently employed in various institutions for more than 6 months who 
have fulfilled the qualifications under Public Administration Circular 25/2014 and 
Public Administration Circular 29/2019. 
 
34. Fiscal Discipline and Macroeconomic Stability 
34.1 Revenue Measures and Domestic Revenue Mobilization 
In parallel with the full implementation of the Public Financial Management Act, 
No. 44 of 2024, our government is committed to building a modern tax system 
based on transparency, fairness, and administrative efficiency. In line with 
international benchmarks, our goal is to achieve and maintain tax revenue at a 
level exceeding 15 percent of GDP in the medium term, secure the necessary fiscal 
space for critical social investments, strengthen investor confidence, and expand 
our financial markets. 
34.2 Progress in Government Tax Revenue Collection 
When our government took office, revenue collection was at a low level. Tax 
compliance was poor, and public confidence in the entire system had eroded. We 
are pleased to announce that, within just one year, we have made significant 
progress in revenue collection.

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Accordingly, government revenue, including grants, increased to Rs. 3,800 billion 
in the first nine months of 2025 from Rs. 2,900 billion in the same period of 2024. 
At this moment, we wish to express our sincere gratitude to all government 
officials who have contributed to this task. 
The Simplified VAT System (SVAT) has been abolished with effect from October 
01, 2025, and has been shifted to an approved refund process to improve tax 
compliance and reduce misuse. The total number of registered taxpayers has 
increased by 3 lakhs as of September 30, 2025 compared to 2024.  
Our approach to strengthening revenue collection is anchored in the principle of 
shared responsibility, reflecting the social contract between the citizen and the 
Government. We are implementing a comprehensive reform agenda that 
rationalizes tax expenditures, strengthens income taxes, improves the efficiency of 
VAT and excise duty, and expands the formal sector through simplified 
procedures and digital-first compliance frameworks. These measures must be 
aligned with broader institutional reforms to improve the efficiency of 
expenditure, accountability, and public trust. 
 
35. Revenue Proposals – 2026 
35.1 Imposition of Value Added Tax and Social Security Contribution Levy on 
Imported Coconut Oil and Palm Oil 
Locally produced coconut oil and palm oil are subjected to Value Added Tax and 
Social Security Contribution Levy, while imported coconut oil and palm oil are 
subjected to Special Commodity Levy at Rs. 150 per kilogram and Rs. 275 per 
kilogram, respectively. To ensure a level playing field, it is proposed to remove 
the Special Commodity Levy on imported coconut oil and palm oil and instead 
implement the general tax structure including Value Added Tax. It is also 
proposed to implement this proposal from April 2026. 
35.2 Reduction of registration threshold of Value Added Tax and Social Security 
Contribution Levy  
With the view of broadening the tax base, we propose to reduce the annual 
turnover threshold for the registration from Rs. 60 million to Rs. 36 million Value 
Added Tax and Social Security Contribution Levy effective from April 01, 2026.

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35.3 Removal of CESS and imposition of VAT on Imported Fabric  
Locally manufactured fabric is subjected to VAT and the imported fabric, although 
exempted from VAT, is subjected CESS of Rs. 100 per kilo gram. To ensure a level 
playing field, it is proposed to remove CESS and impose VAT on the imported 
fabric. This will be implemented effective from April 01, 2026.  
35.4 Imposition of Social Security Contribution Levy on Vehicles  
It is observed that the social security contribution levy on the sale of vehicles is not 
being collected properly. Therefore, the social security contribution levy is 
proposed to be charged at the time of import or manufacture and sale of vehicles, 
and exempt this tax at the time of after-sales. This is expected to be implemented 
effective from April 2026. 
35.5 Implementation of the National Tariff Policy 
We propose to revise the current Customs Import Duty rates of 0%, 15%, 20%, in 
line with the National Tariff Policy, to 0%, 10%, 20%, 30%, effective from April 
2026. The gradual phase out of para-tariffs is targeted through the revisions in the 
above tax rates. We propose to prepare and implement a plan according to a time 
frame for the phaseout of para-tariff with a minimal impact on government 
revenue. 
35.6 Improving the Tax Audit Process  
To enhance the integrity, efficiency and fairness of tax administration, the 
Government will introduce a modern tax audit framework effective on the returns 
filed from January 2026. These reforms will streamline audit procedures and 
reduce the illegal connections between taxpayers and officials, thereby minimizing 
opportunities for discretion and corruption. Under the new system, the selection 
of audit cases will be based on transparent risk assessments conducted by the Risk 
Management Unit and, when necessary, reviewed by a committee appointed by 
the Commissioner General of Inland Revenue. These changes, implemented 
through amendments to the relevant tax statutes, demonstrate the Government’s 
accountability for establishing a transparent, rule-based and credible revenue 
administration that supports Sri Lanka’s journey towards sustainable economic 
growth.

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35.7 Amendments to the Telecommunications Tax Act and Strengthening the 
Government's Programme Against Money Laundering and the Financing of 
Terrorism  
Any bad debt incurred by the telecommunications service provider should be 
included in the payment of the Telecommunications Levy on the provision of 
telecommunications services. Similarly, any bad debt recovered should be 
included in the payment of the relevant tax. It is proposed to amend the 
Telecommunications Tax Act, No. 21 of 2011, to introduce the relevant 
amendments and to reflect the changes made from time to time in relation to 
telecommunications taxes. 
Legal provisions are proposed to be included in the relevant tax laws to allow tax 
administration authorities to exchange information with the Financial Intelligence 
Unit and other enforcement agencies regarding the Anti-Money Laundering and 
Countering the Financing of Terrorism (AML/CFT) Framework. 
 
Also, to strengthen the government's efforts against money laundering and the 
financing of terrorism, necessary legal provisions are proposed to be introduced 
in all tax legislations for enforcement, including the interpretation of tax-related 
crimes, prosecution by the Attorney General and imposition of fines, penalties.  
35.8  Development of the National Electronic Invoicing System 
To initiate a national e-invoicing system, Sri Lanka has introduced an API-based 
integrated framework to enable seamless connectivity between taxpayers' 
Enterprise Resource Planning (ERP) systems and the Revenue Administration 
Management Information System (RAMIS). 
This initiative is expected to be completed and implemented within this year, 
following a pilot project involving a selected group of companies that have 
upgraded their ERP systems to support API integration. 
In the first phase, the system will be expanded to cover export-oriented enterprises 
and integration with selected pilot companies through the API mechanism. In the 
second phase, all VAT-registered taxpayers will be included.

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In the third phase, the e-invoice system is expected to be deployed through point-
of-sale (POS) machines to record transactions in real time, improve tax compliance, 
and enhance the efficiency and transparency of VAT administration through a 
fully web-based platform. 
35.9 Establishment of the Department of Inland Revenue in a Single Office 
Premises 
The Department of Inland Revenue is one of the main institutions responsible for 
generating government revenue, and directing its tax collection process towards 
digitalization enables the provision of a more efficient service. 
Under this condition, by operating the main office of the Department of Inland 
Revenue and its related offices within a single premises, it will be possible to 
provide taxpayers with a simpler, more reliable, and efficient service, while also 
strengthening the tax collection process in a sustainable manner. Since taxpayers 
are the main beneficiaries of this institution, it is essential to develop the necessary 
physical facilities to provide them with a quality service. 
Accordingly, it is proposed to allocate Rs. 2,000 million to establish a new office 
complex after selecting the most suitable location among the proposed sites and 
conducting a feasibility study. 
 
36. Changing the date of publication of the Final Budget Position 
Report and the Mid-Year Fiscal Position Report 
Considering the delays in the timely dissemination of essential public financial 
information required for effective fiscal oversight and policy adjustment during 
the financial year, we propose to enhance fiscal transparency and make public 
financial management more responsive by advancing the publication deadlines. 
Accordingly, the deadline for releasing the Final Budget Position Report (Annual 
Report) will be moved from June 30 to May 31 each year, and the publication of 
the Mid-Year Fiscal Position Report will be advanced from October 31 to August 
31 each year.

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37. Borrowing Limit 
The borrowing limit of the Appropriation Bill for the financial year 2026 is 
presented in Annexure II. The technical note on the relevant expenditure measures 
is given in Annexure III. Further, the documents to be presented with the second 
reading of the budget under the Public Financial Management Act, No. 44 of 2024 
have also been tabled. 
37.1 Reducing the Maximum Borrowing Limit for the Year 2026 
Due to the revisions to the revenue estimates expected through the budget 
proposals, the borrowing limit in the Appropriation Bill presented to this 
Parliament on 26.09.2025 should be revised by reducing it by Rs. 60 billion to Rs. 
3,740 billion. This revision is presented in Annex II of this Budget Speech. 
37.2 Amendments to the Appropriation Bill arising from the Revision of 
Subjects and Functions of Ministries 
Following the submission of the Appropriation Bill to Parliament, certain subjects 
and functions of Ministries were revised as per the Extraordinary Gazette No. 
2485/65 dated 18.10.2025. Accordingly, the necessary amendments to this Bill, in 
line with those revisions, will be made under the respective expenditure heads at 
the Second Reading of the Budget. 
The changes to expenditure heads required for the year 2025, in line with the 
revision of subjects and functions, have already been outlined in National Budget 
Circular No. 04/2025. 
 
38. Conclusion 
Honorable Speaker, 
At a moment when it is internationally recognized that Sri Lanka’s comprehensive 
economic reform programme has continued to make impressive progress, at a 
moment when there are indications globally that Sri Lanka is a tourist paradise 
and one of the number one tourist destinations in the world, at a moment when 
our country has advanced 15 places according to the Global Democracy Index, and 
at a moment when the anti-corruption process has been appreciated by the world, 
we are pleased to present the Budget Speech 2026.

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In this short period, we have created a new sense of humanity in the country. We 
have built universal justice. We have created a sense of Sri Lankan. We have 
created a country without racism. Strengthening the rule of law, making 
institutions independent that uphold the rule of law, freeing the security forces 
including the police from politics, passing new legislations, taking steps to combat 
drugs and the organized criminal networks, and strengthening foreign relations 
are some of our notable achievements. We have stabilized the economy and 
increased government revenue by establishing high fiscal discipline. Growth in 
export earnings, increase in tourism earnings, and increase in foreign exchange 
remittances have strengthened the stability of the country. Increasing port 
operating profits, increasing customs revenues, together with our government's 
one-year balance sheet demonstrates positive results of governments operations.  
Accordingly, the citizens of this country have a strong belief that this is a 
government that has not compromised the aspirations of the people and has not 
betrayed those aspirations. 
A country that has been taking strong and rapid measures against over the recent 
times during this past period. This is a country that has ended racism, 
religiousness and extremism through the sovereignty of the people. A country that 
has established the rule of law and order independent to an extent that has not 
existed in any era in the history. A country with a government that has not 
misused public funds and has established fiscal discipline. Our government has 
the humble self-satisfaction of presenting a budget speech in such a country. 
Accordingly, for the first time in history, we have placed before the country the 
second Budget of a government that has not misused public funds or used 
improper privileges. 
Honorable Speaker, 
The people of this country and ourselves have an unforgettable history. According 
to a historic political decision taken a year ago, our government came into power. 
We have ruled the country during the period we passed, making it clear that 
political power and state power are not ownership but only a stewardship. 
However, we have experienced with the systems of government in history that 
dreamed of turning the power given temporarily by the people into a permanent 
power. 
We believe that even a comparison with other governments in history is enough 
to understand the balance sheet of the last year.

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During this period, we have made optimal decisions instead of popular decisions. 
During this period, we have made transparent decisions instead of opaque 
decisions for the country. We have completely wiped out the illegal activities that 
took place in the history of this country under the shadow of politicians. We have 
defeated the political power with an organized theft ring that was tainted by 
terrible fraud and corruption and transformed our country into a responsible 
governance system that bows to the law and loves the country. 
We have passed through old histories where things that should not have been 
expected at all happened in the first year of the establishment of a government. 
We remember the history of the regimes that gave privileges to their friends and 
cronies within the first few months of coming to power. 
We have experienced regimes that robbed the Central Bank within a few months 
of coming to power.  
We have experienced regimes that gave tax concessions worth trillions to their 
friends within a few months of coming to power. We have witnessed regimes that 
within mere months of assuming power, bent the law and judiciary to suit their 
political agenda. We have seen the painful regimes that, within a very short period 
of coming to power, gave innocent cancer patients in this country injections of 
water instead of medicine. 
We changed that terrible, immoral, and ugly system. 
Honorable Speaker, 
We have decisively changed the difference between the citizen and the public 
representative. We have changed the status of the politician as someone above the 
people, treating them like slaves, a king or a Maheshakya God, and we have made 
him a person who does not deserve undue privileges. He may be a leader elected 
by the people. However, we have confirmed in society in this short period of time 
that he is an ordinary person like general public. That is a victory we have 
achieved. Our aim is to further strengthen it. 
We have removed the undue privileges of former presidents. Some may feel pain 
about this. But we worked according to the mandate of the people. Some people 
argue about the privileges given to former presidents and prime ministers in other 
countries. However, those countries did not go bankrupt like us. Unfortunately, 
our country made bankrupt. In a country where children do not have schools; in 
a country where millions of people go to bed without even a single meal; in a

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country where people suffer without the means to buy medicine to save their lives; 
in a country where innocent youth suffer without jobs, is it at least moral for 
former presidents to continue to enjoy privileges? Is it possible to remain like that? 
But we have set that example. Our sole objective is to create an economy where 
people who do not eat three meals a day can get three nutritious meals, to create 
an environment for every child to receive education, to provide shade for every 
head, and to ensure a healthy life for every citizen. 
And today, we have been able to create a bridge for anyone who wants to serve 
the country. We have opened the door to rising to the top of the country from a 
very small place. That bridge is open to those who have talent, skill and ability 
instead of wealth, power or social status. 
In history, the law has been changed as needed to give all the privileges to their 
friends. We have stopped the history of nepotism and cronyism by changing even 
the rules and regulations to treat those who helped them in elections. 
Also, in history, many people involved in the underworld and drugs had the cover 
of political heat. Today, they have lost all that. 
When appointing to various positions, we looked at talent, ability, honesty, desire 
to work for the country and skill, and not whether they helped us or were one of 
our own. His political background, nationality, kinship, religion, school studied, 
former country, etc. are not relevant to us. We have no personal agendas. All we 
wanted was to know whether or not the services of these people would benefit the 
people of the country. 
For a long time, investors had a bad image of our country. We changed that bad 
image. An investor is an asset to us. We changed the way we look at them and the 
attitude we have. We created the attitude that they come to us to support us. We 
have created a suitable environment for investment and we are creating the 
necessary environment to provide them with the necessary facilities without any 
delay. In order to transform Sri Lanka into a favorable destination for investors, 
we have already created a rule of law, long-term government policies, an 
independent judiciary and an investment-friendly environment free from 
corruption. A transparent investment environment free from hand-to-hand 
dealings, bribery and favoritism has now been created. Also, new legal 
frameworks, visa policies and other infrastructure facilities required by investors 
are being developed expeditiously and business facilities are being created. In this 
way, a liaison manager is being connected to facilitate investors who come and

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achieve fruitful results. We are giving the message that this is an honest, beautiful 
country, a friendly country for investors. 
This country is the home where more than twenty million citizens can breathe. 
And this country is also where many generations to come will live. We are creating 
a civilized country. A country that loves even animals. A country full of humanity. 
We are deeply aware of how special the education of that country is in building a 
country. We are in the sustainable policy of providing education to all children. 
Honourable Speaker, 
The people of this country have entrusted us with the ultimate right to end decades 
of insecure, confusing and repressive history. We have used that vast and unique 
mandate very humbly and responsibly for the noble task of nation-building. No 
matter how difficult it is to carry out excellent tasks such as combating corruption, 
moving towards national unity, and making the law fair for all, we are climbing 
that difficult mountain with determination. 
This budget has been presented with the sincere hope of making the path to 
realizing our vision and dream of every Sri Lankan enjoying a good life a reality. 
There is a saying that gives them the serenity to accept the things that cannot be 
changed, the courage to change the things that can be done, and the wisdom to 
know the difference that has been made. We are a government that has understood 
that reality. 
 
Honourable Speaker, 
Throughout history, governments have set examples of tightening the belt for the 
people and loosening the belt for the politicians. But today, what has happened is 
an example of loosening the belt for the people and tightening the belt for the 
politicians. What we need is not a bigger government but a more productive 
government. 
A country’s budget is not just an accounting exercise that measures what we earn, 
what we spend and what we borrow as a nation. It is not just a document. It is a 
reflection of the difficult and transparent trade-offs that are necessary to balance 
fiscal sustainability while achieving our development goals. In short, we believe 
that the budget is the one that allocates the financial resources needed to fulfill the 
rights of all citizens. Accordingly, it is a compromise about the future of a country!

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The problems we face as a country are clear. The priorities are clear. We no longer 
believe that diagnosis is necessary. Over time, we have understood the disease and 
the root cause of it. Now we are embarking on the task of curing the disease. It is 
challenging. We believe that we can all join hands and overcome that challenge. 
In particular, in our country, unfortunately, we have lost a number of talented 
people who are living outside the country. Some left the country because they did 
not bow their heads to the injustices of the rulers. Or the rulers expelled those 
excellent people from the country. Those who studied in this country, perhaps 
those who were born in this country and studied abroad, had very good 
opportunities in the world. But they did not accept those opportunities and came 
to serve their motherland. However, they were not given a chance to breathe freely 
in the land of their birth or to serve that land. Their mistake was that they did not 
bow their heads to the wrongdoings of the rulers. And they did not agree to the 
system that does not give the right place to the right person. We invite all of them 
today, the time when this country was a forbidden land for you is over. The old 
system is over. Now there is a system that gives the right place to the right person. 
Come work freely, the doors of this country are open to you. 
“Everything comes to us that belongs to us if we create the capacity to receive it”, 
says Rabindranath Tagore. 
The aim of this budget is to create a renaissance by eradicating bribery and 
corruption, stimulating development, restoring trust, and starting a good life. 
We respectfully request the opposition. Criticize us. Accuse us. Protest. But at 
least, when we fight to end drug trafficking and the underworld for the sake of the 
future generations of the country, and when we work to eradicate poverty, 
support it wholeheartedly. At least in that fight, this country expects that from the 
opposition. 
Honorable Speaker, 
The painful events of history tell us to build this country. The past, full of losses, 
negligence, oppression, threats, and roars, tells us to build this country. 
The children of earlier generations could not call this land their home with true 
pride. But we owe to our future generations to free them from that tragedy and to 
build a nation they can proudly call their own.

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67 
Sacrificing every dream for a more beautiful country, every heart that stopped 
beating before that dream was realized, longed to see this nation become truly 
beautiful.  
We have taken upon ourselves the dying wishes of those pure people. We fulfill 
those wishes with as much desire as the word of God. 
We believe that the sun shines beyond the dark clouds, and that the dark clouds 
will disappear. And we believe that bright silver lines will definitely shine in the 
midst of the darkness. 
We remember that on this journey we are on, we will not hear the frantic cries of 
the enemies, and we will only see the determined and hopeful eyes of the citizens 
of the country. 
We will build a nation that is not only economically prosperous but also morally 
proud, globally respected and endowed with broad humanitarian qualities. 
In this unique journey, you as citizens will play the most important roles. You are 
the strength and reason behind this transformation. We express our gratitude to 
the public servants, professionals and entrepreneurs who have worked tirelessly 
with honesty and dedication. We invite our Sri Lankans abroad to come back, 
invest and join hands in rebuilding our motherland that we all love. 
Finally, I express my sincere gratitude to all the officials of the Ministry of Finance 
and the Secretary to the Treasury, Dr. Harshana Suriyapperuma, who worked 
with unwavering dedication and perseverance in preparing this budget. Their 
professionalism, dedication and sense of duty have been instrumental in the 
preparation of this comprehensive and forward-looking budget. As we 
collectively advance the government’s economic reform agenda and national 
development goals, we look forward to your continued support and commitment 
as officials of the Ministry of Finance to ensure and implement these proposals in 
a timely and effective manner. 
Thank you!

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Cited in:

69 
Summary of the Budget Estimates 2026 
  
  
  
  
  
  
Rs. Billion 
Item 
  
  
2024 
2025  
Revised Estimates 
2026 
Budget 
Total Revenue and Grants 
             4,091  
                   5,100  
                    5,300  
  
Total Revenue 
             4,031  
                   5,075  
                    5,270  
  
  
Tax Revenue 
             3,705  
                   4,725  
                    4,910  
  
  
  
Income Tax 
             1,026  
                   1,120  
                    1,210  
  
  
  
Taxes on Goods and Services 
             2,201  
                   2,953  
                    3,056  
  
  
  
Taxes on External Trade 
                477  
                      652  
                        644  
  
  
Non-Tax Revenue 
                326  
                      350  
                        360  
  
Grants 
                  60  
                         25  
                          30  
Total Expenditure 
             6,131  
                   6,548  
                    7,057  
  
Recurrent 
             5,340  
                   5,530  
                    5,688  
  
  
Salaries and Wages 
             1,066  
                   1,220  
                    1,323  
  
  
Other Goods and Services 
                351  
                      380  
                        401  
  
  
Interest 
             2,690  
                   2,650  
                    2,617  
  
  
Subsidies and Transfers 
             1,234  
                   1,280  
                    1,347  
  
Public Investment 
                817  
                   1,033  
                    1,380  
  
Other 
  
                -26 
                       -15 
                        -11 
Revenue Surplus (+)/Deficit(-) 
           -1,309 
                    -455 
                      -418 
Primary Surplus (+)/Deficit(-) 
                650  
                   1,202  
                        860  
Budget Surplus (+)/Deficit(-) 
           -2,040 
                 -1,448 
                  -1,757 
Total Financing 
             2,040  
                   1,448  
                    1,757  
  
Total Foreign Financing 
                333  
                      200  
                        235  
  
  
Foreign Borrowings-Gross 
             3,967  
                      650  
                        700  
  
  
Debt Repayment 
           -3,634 
                     -450 
                      -465 
  
Total Domestic Financing 
             1,707  
                   1,248  
                    1,522  
  
  
Non - Bank Borrowings (Net) 
             2,087  
                   1,248  
                    1,522  
  
  
Bank Borrowings and Other (Net) 
               -381 
                          -   
                           -   
Revenue and Grants/GDP (%) 
               13.7  
                     15.9  
                      15.4  
  
Total Revenue/GDP (%) 
               13.5  
                     15.9  
                      15.3  
  
  
Tax Revenue/GDP (%) 
               12.4  
                     14.8  
                      14.2  
  
  
Non-Tax Revenue/GDP (%) 
                 1.1  
                       1.1  
                         1.0  
  
Grants/GDP (%) 
                 0.2  
                       0.1  
                         0.1  
  
Total Expenditure/GDP (%) 
               20.5  
                     20.5  
                      20.5  
  
  
Recurrent Expenditure/GDP (%) 
               17.9  
                     17.3  
                      16.5  
  
  
  
Non-Interest/ GDP (%) 
                 8.9  
                       9.0  
                         8.9  
  
  
  
Interest/ GDP (%) 
                 9.0  
                       8.3  
                         7.6  
  
  
Public Investment/ GDP (%) 
                 2.7  
                       3.2  
                         4.0  
Revenue Surplus (+)/Deficit (-) GDP (%) 
                -4.4 
                      -1.4 
                       -1.2 
Primary Surplus (+)/Deficit (-) GDP(%) 
                 2.2  
                       3.8  
                         2.5  
Budget Surplus (+)/Deficit (-) GDP(%) 
               -6.8 
                     -4.5 
                       -5.1 
Compiled by Department of Fiscal Policy 
  
  
  
Annexure I

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70 
 
 
 
 
 
 
 
 
 
Gross Borrowings Requirement - 2026 
(Provisioning for Accounting Transactions) 
  
  
Item 
Rs. Billion 
Total Receipts other than Government Borrowings 
               5,355  
Total Primary Expenditure 
               4,485  
Recurrent 
               3,105  
Capital 
               1,380  
Debt Service Payments 
               4,495  
Interest Payments 
               2,617  
Debt Repayments 
               1,878  
Provision for Advanced Accounts 
                    10  
Adjustments for book/cash Value of Government Securities 
                  105  
Total Gross Borrowing Requirement to be recorded in 
Government Accounts 
               3,740  
Compiled by Department of Fiscal Policy 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annexure II

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71 
Annexure III 
Expenditure Proposals – 2026 
No. Proposal 
Rs. Million 
1 
Providing vehicles/machineries required for Government Institutions 
and   Provincial Councils 
12,500 
2 
Enhancing digital accessibility in Government Institutions 
1,000 
3 
Settling the outstanding statutory payments of 10 State Own Enterprises 
within two years 
5,000 
4 
Reactivating the Property Loan Scheme for government employees 
provided through Banks 
500 
5 
Increasing the Principals' allowance and Teachers' Hardship allowance  
1,000 
6 
Increasing the allowance for Gatekeepers at unsafe railway crossings 
250 
7 
Development of Feeder Zones as Service Zones associated with existing 
Investment Zones 
1,000 
8 
Providing incentives to attract International Data Centers 
500 
9 
Streamlining the land release for investment purposes 
100 
10 
Establishment and development of Industrial Zones 
1,000 
11 
Export promotion 
500 
12 
Encouraging the employment of youth with disabilities or special needs 
in the private sector 
500 
13 
Ensuring accessibility and sanitation facilities in public places for 
persons with disabilities and special needs 
1,000 
14 
Increasing the wages of Estate Workers 
5,000 
15 
Providing relief for Thalassemia patients 
250 
16 
Establishing Day Care Centers for children with disabilities including 
Autism 
500 
17 
Increasing the total allocation for “Praja Shakthi Program” to Rs. 25 
billion, for district and divisional-level implementation 
20,750 
18 
Facilitating the Government Institutions to promote Cashless Economy 
1,000 
19 
Increasing milk production 
1,000

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72 
No. Proposal 
Rs. Million 
20 
Shelters for Street Animals and Crematoriums 
100 
21 
Completing the construction of Badalgama Milk Processing Factory 
3,000 
22 
Upgrading Livestock Breeder Farms  
1,000 
23 
Providing concessions for Small-Scale Coconut Cultivators 
2,500 
24 
Upgrading the Temperature-Controlled Storage Facility in Dambulla 
250 
25 
Establishing a Sustainable Agricultural Credit Fund 
800 
26 
Providing facilities for mechanized paddy drying 
500 
27 
Increasing agricultural production in Matale, Kandy and dry zones 
through Climate-Smart Irrigation Technology 
1,000 
28 
Increasing Mahapola/Bursary, Trainee Teacher and Nipunatha Sisu 
Diriya allowances by Rs. 2,500 
2,750 
29 
Providing allowances for low-income students with disabilities studying 
in Higher Education Institutions 
50 
30 
Providing new houses for families facing higher risk of landslides  
2,000 
31 
Providing housing assistance for reintegration of institutionalized 
individuals and child protection 
2,000 
32 
Implementing the “A Place of Their Own - for a Beautiful Life” Housing 
Program for low-income families 
3,000 
33 
Providing housing for internally displaced communities 
1,150 
34 
Conducting feasibility studies on flood control in Hambantota, Galle, 
Kalutara, and Rathnapura 
500 
35 
Kalutara Lagoon development 
100 
36 
Providing solutions for Human-Elephant Conflict 
1,000 
37 
Ensuring the safety of Fishermen 
100 
38 
Development of Fishery Harbors 
1,000 
39 
Implementation of a safety program to reduce road accidents 
1,000 
40 
Commencing preliminary work for the construction of the Kiran and 
Pondukalchenai Bridges in Batticaloa 
500

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73 
No. Proposal 
Rs. Million 
41 
Construction of Rambukkana–Galagedara section of the Central 
Expressway 
16,000 
42 
Establishing Aarogya Centers 
1,500 
43 
Relocating Deniyaya and Dambulla Hospitals to suitable locations 
1,000 
44 
Promoting Sports Culture 
800 
45 
Launching a nationwide operation to prevent drug menace 
1,500 
46 
Promoting Drama, Performing Arts, and Literature 
50 
47 
Renovating Prisons and relocating them to identified suitable sites 
2,000 
48 
Freeing up lands for Ratnapura City Development (construction of  
Quarters for Government Officers) 
500 
49 
Development of Hatton and Matale Towns 
500 
50 
Constructing City Halls in Ampara and Monaragala. 
200 
51 
Providing subsidies for buses operating on unprofitable routes to ensure 
sustainable rural transport services 
2,000 
52 
Women empowerment 
200 
53 
Providing a Rs. 5,000 allowance for schoolchildren with disabilities from 
low-income families  
50 
54 
Completion of Nintavur Cultural Center of which the construction 
stopped  
300 
55 
Silver Economy - Investment in Senior Citizens 
10 
56 
Satellite-Based Technology driven, information provision for Fishermen 
on fishing grounds 
100 
57 
Establishment of the Inland Revenue Department in a single premise 
2,000 
58 
Development of Domestic Airports 
1,000 
59 
Improving facilities to ensure food security 
1,000 
60 
Providing assistance to Journalists for higher education and technical 
approach  
100 
61 
Flood and saltwater intrusion controlling along the Nilwala River in 
Matara 
1,000 
62 
Finding research-based solutions to resolve the Human-Elephant 
Conflict 
10

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, 
 
,
,
Ministry of Finance, Planning and Economic Development, Colombo 01. 
 
2025.11.07 
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