Sri Lanka’s Budget Speech 2026

Sri Lankan President Anura Kumara Dissanayake completed presenting the 2026 Budget to the Parliament of Sri Lanka today (November 7) in his capacity as the Minister of Finance.

According to the Appropriation Bill, which was presented as the second Budget of the National People’s Power (NPP) government, the total government expenditure for 2026 is estimated at 4,434 billion rupees.

The highest allocation in the Appropriation Bill for the upcoming year (2026) has been made to the Ministry of Finance, Planning and Economic Development, amounting to 634 billion rupees.

You can read the full 2026 Budget speech by clicking here.

You can also read the highlights of the 2026 Budget speech here:

05:28 PM – It has been proposed to revise the current Customs Import Duty rates of 0%, 15%, and 20% to 0%, 10%, 20%, and 30%, in line with the National Tariff Policy, effective from April 2026.

05:21 PM – To ensure a level playing field between locally manufactured and imported fabric, it is proposed to remove the existing CESS of Rs. 100 per kilogram on imported fabric and replace it with Value Added Tax (VAT).

05:16 PM – The social security contribution levy is proposed to be charged at the time of import or manufacture and sale of vehicles, while exempting it during after-sales. This is expected to be implemented from April 2026.

05:15 PM – It is proposed to remove the Special Commodity Levy on imported coconut oil and palm oil and instead apply the general tax structure, including VAT, from April 2026.

05:08 PM – It is proposed to grant permanent appointments to all employees currently employed in various institutions for more than six months who have fulfilled the qualifications under Public Administration Circulars 25/2014 and 29/2019.

05:06 PM – It is proposed to allocate Rs. 250 million to increase the minimum allowance for railway gatekeepers from Rs. 7,500 to Rs. 15,000 per month for an eight-hour shift.

04:58 PM – The distress loan limit for public servants has been increased from Rs. 250,000 to Rs. 400,000 at an interest rate of 4.2%. Rs. 10,000 million has been allocated for disbursement.

04:58 PM – The festive advance for government employees will rise to Rs. 15,000, up from the current Rs. 10,000.

04:57 PM – Agrahara Insurance contributions for public servants will increase. The minimum contribution has been raised by Rs. 75, while the Rs. 300 and Rs. 600 contribution tiers have been increased by Rs. 150.

04:56 PM – Rs. 110 billion has been allocated for the second phase of 2025 salary revisions, with payments to all public servants starting from January 2026. Additionally, Rs. 20,000 million has been allocated for the second phase of pension revisions.

04:53 PM – The Government has decided to purchase vehicles and machinery essential for government institutions, as well as vehicles to be provided on a return basis after the end of parliamentary members’ terms. For this purpose, Rs. 12,500 million has been allocated as the primary requirement.

04:51 PM – Rs. 4,290 million has been allocated, with the assistance of the Government of India, to construct 2,000 houses to improve housing and infrastructure facilities for Malayagam Estate workers in the Central, Uva, Sabaragamuwa, North Western, and Southern Provinces.

04:50 PM – 75,000 people will be recruited to the public service under a proper and structured system. This includes positions such as technical officers, law enforcement officers, and revenue officers.

04:39 PM – Rs. 840 million has been allocated to resettle unauthorised settlers living near the Kelani Valley Railway.

04:39 PM – Rs. 1,180 million has been allocated to renovate old apartment complexes previously built by the Government.

04:37 PM – Under the Urban Regeneration Project, Rs. 15,000 million has been allocated to construct houses in Colombo and its suburbs, including Applewatta, Madampitiya, Fergusson Mawatha, Obeysekarapura, Stadiumgama, Colombage Mawatha, and Torrington Place.

04:37 PM – The “A Place of Your Own – A Beautiful Life” housing programme will be implemented for low-income families, with Rs. 3,000 million allocated to construct 70,000 houses, in addition to Rs. 7,200 million for a further 10,000 houses.

04:35 PM – Rs. 100 million has been allocated to implement a pilot project, in collaboration with local authorities, to take care of stray dogs and pets in urban areas.

04:35 PM – Rs. 2,000 million has been allocated to commence preliminary work to identify the feasibility of developing 10 identified cities across the island, including Jaffna, Eheliyagoda, Batticaloa, Chilaw, and Matara, in order to create an efficient, sustainable, tourist-friendly and investment-attractive city network.

04:34 PM – Rs. 900 million has been allocated for the implementation of solid waste management, including providing vehicles and equipment for the systematic disposal and maintenance of solid waste.

04:26 PM – To reduce congestion in Matale, plans include expanding the road network to four lanes. For Hatton, a city development plan will be prepared in 2026 to address heavy traffic issues. Rs. 500 million has been proposed for this purpose.

04:25 PM – Urban development projects will follow a formal, study-based plan starting in 2026. Rs. 2,000 million has been allocated to commence preliminary feasibility studies for 10 identified cities, including Jaffna, Eheliyagoda, Batticaloa, Chilaw, and Matara.

04:15 PM – The Government has introduced a competitive bidding system for Government procurements to ensure more favourable prices for consumers.

04:15 PM – Rs. 1,500 million has been allocated for land acquisition related to the Ruwanpura Expressway.

04:15 PM – Rs. 1,000 million has been allocated to complete land acquisition for the Kurunegala–Dambulla Expressway.

04:13 PM – An additional Rs. 1,000 million will be allocated for the implementation of a comprehensive road safety programme.

04:11 PM – Rs. 34,200 million has been allocated for road development, including Rs. 10,500 million for the construction of the Central Expressway from Pothuhera to Galagedara.

04:10 PM – Rs. 1,500 million has been allocated for ongoing land acquisition and reassessment of the access road following the halted construction of the Ruwanpura Expressway (Kahathuduwa to Ingiriya).

04:09 PM – Rs. 1,000 million has been allocated to complete land acquisition for the Kurunegala–Dambulla Expressway.

04:07 PM – Rs. 250 million has been allocated to implement short-term measures to address flood threats, and Rs. 500 million has been allocated for broader flood control activities.

04:06 PM – Rs. 790 million has been allocated for the procurement of new tools, machinery, and equipment for SLTB depots and workshops.
Rs. 3,300 million has also been allocated for the initial procurement of five new Diesel Multiple Units (DMUs) for the Sri Lanka Railways Department.

04:05 PM – Rs. 2,062 million has been allocated next year to replace worn-out engine units of 307 SLTB buses.

04:04 PM – Rs. 3,600 million has been allocated to add 600 new buses to the long-distance service fleet of the Sri Lanka Transport Board (SLTB).

03:59 PM – Rs. 100 million will be allocated to provide life-saving equipment for fishermen.

03:58 PM – Rs. 350 million has been allocated for the development of the Valaichchenai Fishing Harbour.

03:55 PM – Rs. 5,000 million has been allocated to expedite the Lower Malwathu Oya Multipurpose Development Project.

03:55 PM – Rs. 6,500 million has been allocated for the restoration of other canal systems, including the urgent commencement of restoration work on the sluice (sorowwa) of the Senanayake Samudraya, as well as the restoration of the Gal Oya, Rajanganaya, Huruluwewa, and Minneriya reservoirs.

03:54 PM – Rs. 91,700 million has been allocated to strengthen and uplift irrigation. Rs. 50 million has been allocated in this Budget to resume the Mundeni Aru project by initiating preliminary work.

03:53 PM – Rs. 3,000 million has been allocated for the renovation of the Badalgama Milco factory.

03:52 PM – Rs. 1,000 million has been allocated for cattle and swine breeding programmes.

03:51 PM – Rs. 500 million has been allocated to develop infrastructure at fishing wharves to improve the living standards of the fishing community.
Rs. 100 million has been allocated to develop a system for identifying fish grounds using satellite technology, and another Rs. 100 million has been allocated to upgrade aquaculture development centres.

03:50 PM – Rs. 600 million has been allocated for the Jaffna Coconut Triangle.

03:50 PM – Rs. 1,000 million has been allocated to boost domestic milk production.

03:48 PM – Rs. 250 million has been allocated to install a solar panel system at the Dambulla cold storage facility.

03:48 PM – Rs. 800 million has been allocated for the promotion of sports culture.

03:48 PM – Houses will be provided for journalists under the housing project constructed with Chinese assistance.

03:45 PM – Rs. 1,000 million has been allocated for preliminary work, including a feasibility study, to reach the target of meeting 75 per cent of the domestic milk requirement by 2030.

03:43 PM – Rs. 24,000 million has been allocated to construct rural roads, and Rs. 2,500 million has been allocated for rural bridges.

03:43 PM – Rs. 2,000 million from the Foreign Employment Bureau will be allocated to introduce a contributory pension scheme for migrant workers in 2026.

03:40 PM – Rs. 100 million will be allocated to provide higher education scholarships and to support the technical skills required in journalism.

03:38 PM – Rs. 300 million has been allocated to complete the construction of electric fences in all identified essential areas.

03:34 PM – The contribution of women to the country’s labour force is extremely important. Rs. 240 million has been allocated to support self-employment initiatives and household industries carried out by women entrepreneurs across the island at the Divisional Secretariat level. In addition, a further Rs. 200 million has been proposed for programmes aimed at improving the welfare of women.

03:30 PM – The daily wage for estate workers will be increased from Rs. 1,350 to Rs. 1,750 by January 2026. Of this amount, employers will contribute Rs. 200, while the Government will provide a daily attendance incentive of Rs. 200.

03:26 PM – Rs. 570 million has been allocated for the Community Science and Health Survey.

03:26 PM – Rs. 1,000 million has been allocated to relocate the Dambulla and Deniyaya Divisional Hospitals.

03:23 PM – Rs. 4.2 billion has been allocated for the Suwasariya Ambulance Service.

03:23 PM – Rs. 200 million has been allocated for the initial work to establish a National Cardiologic Hospital in Colombo.

03:22 PM – Rs. 1,500 million will be allocated for the pilot project to introduce primary healthcare centres.

03:22 PM – Rs. 250 million will be allocated to provide a monthly allowance of Rs. 10,000 for thalassemia patients.

03:19 PM – Rs. 11,000 million has been allocated for medical faculties in State universities.

03:18 PM – The Government has allocated Rs. 500 million to establish daycare centres for children with disabilities, including children with autism.

03:17 PM – Rs. 750 million has been allocated for Artificial Intelligence Service Centres.

03:17 PM – A monthly allowance of Rs. 5,000 will be paid to differently-abled children pursuing higher education, in addition to the Mahapola Scholarship.

03:16 PM – Rs. 2,000 million has been allocated for the National Operation Against Drugs.

03:15 PM – The Mahapola Scholarship will be increased by Rs. 2,500.

03:15 PM – Rs. 6,500 million has been allocated for the Clean Sri Lanka Programme.

03:15 PM – Three percent of Government recruitments will be reserved for persons with disabilities.

03:14 PM – The Government has announced measures to install 100 new telephone towers across the country.

03:13 PM – Rs. 50 million will be allocated to provide a monthly allowance of Rs. 5,000 for the educational needs of differently-abled children.

03:12 PM – Rs. 2,000 million will be allocated to expedite prison operations, including upgrading open prisons and involving inmates in civil work.

03:10 PM – Broadband internet voucher cards will be provided for children from low-income families.

03:08 PM – Service fees will be waived for transactions below Rs. 5,000 made via QR codes.

03:07 PM – A five-year tax concession will be granted for digital communication towers.

03:07 PM – Rs. 6,500 million has been allocated for the Clean Sri Lanka Initiative.

03:06 PM – A virtual economic zone will be established to promote investments.

02:59 PM – All Government payments will be brought under a digital payment system. No service charges will be imposed for online payments.

02:59 PM – The Bandaranaike International Airport (BIA) expansion project will commence next year.

02:56 PM – The first digital ID card is scheduled to be issued by March 2026.

02:52 PM – A sum of Rs. 2,500 million has been proposed to develop Beira Lake and transform it into an attractive location in Colombo.

02:52 PM – Rs. 1,000 million will be allocated to develop the Hingurakgoda, Sigiriya, and Trincomalee domestic airports, and to expand operations at Jaffna Airport.

02:50 PM – State bungalows will be converted into profitable ventures under Public-Private Partnership arrangements. A total of 900 such buildings have been identified.

02:47 PM – Rs. 5,900 million has been allocated for loans to small and medium-scale entrepreneurs.

02:45 PM – Rs. 800 million is proposed to be allocated to establish a Sustainable Agricultural Loan Fund.

02:44 PM – Rs. 2,500 million has been allocated for the establishment of a National Single Window.

02:40 PM – Rs. 100 million has been allocated to establish a central digital system containing land information.

02:39 PM – Rs. 1,000 million has been allocated to develop services related to investment zones.

02:39 PM – The practice of granting tax exemptions to friends and transferring tax relief will be terminated.

02:38 PM – Rs. 250 million will be allocated to the Export Development Board to promote and facilitate exports.

02:35 PM – Two technical institutes were built in Kurunegala and Galle, but both have since been abandoned. Their outstanding debts will be settled, and the institutes will be reopened for private sector investment.

02:33 PM – A Residence Visa system will be introduced for tourists.

02:33 PM – The Colombo Port City Economic Commission Act will be amended.

02:32 PM – Two IT zones are planned in Digana and Nuwara Eliya under the BOI.

02:30 PM – This year’s Budget deficit is expected to be reduced to 5.2 percent.

02:28 PM – Efforts are underway to achieve a 60:40 ratio between direct and indirect taxes.

02:27 PM – The President said the Budget deficit will be reduced to 5.2 percent this year.

02:26 PM – Efforts are underway to raise State revenue to 15.3 percent of GDP by 2026.

02:22 PM – This year, foreign debt servicing increased by US $760 million compared to last year.

02:15 PM – The President says the Government has already paid a larger share of debt in 2025 compared to 2024.

02:15 PM – Import expenditure is expected to increase by US $430 million in 2025.

02:12 PM – The President said the Government aims to restore Sri Lanka’s pre-crisis economy by the end of 2025, four years ahead of earlier projections.

02:11 PM – Sri Lanka has spent US $1.3 billion on vehicle imports as of October 31 this year.

02:10 PM – Sri Lanka is on course to achieve debt sustainability, with a plan to reduce the debt-to-GDP ratio to 95 percent.

02:08 PM – “Regardless of position or rank, anyone who engages in fraud, corruption, or other crimes will be punished,” the President said.

02:05 PM – We have appointed an expert committee to negotiate Free Trade Agreements.

02:03 PM – The President said the Government is working towards achieving 7 percent economic growth.

02:02 PM – The President said Sri Lanka has achieved US $823 million in Foreign Direct Investment (FDI) by September this year.

01:52 PM – The Government expects to appoint an expert committee to draft a Code of Ethics for the judicial service. A digital assets system is also planned to be introduced in 2026.

01:50 PM – The Government plans to introduce an e-procurement system soon.

01:47 PM – The President said the US $210 million debt component of SriLankan Airlines will be restructured this year.

01:46 PM – “We expect to reduce the debt-to-GDP ratio to 87 percent by 2030,” the President said.

01:46 PM – The President says macroeconomic stability has been achieved in the Budget speech.

01:45 PM – President Anura Kumara Dissanayake, in his Budget speech, said macroeconomic stability has now been achieved. He stated that inflation has returned to positive territory and that government revenue is expected to reach 16 percent of GDP by the end of this year.

01:40 PM – The President stated that the Government intends to maintain inflation below 5 percent.

01:36 PM – The President begins delivering the Budget speech.

01:35 PM – Sri Lanka President Anura Kumara Dissanayake arrives in Parliament to present the 2026 Budget.

You can read the full 2026 Budget speech by clicking here.