Sri Lanka Budget 2026

• 01:18 PM – President Anura Kumara Dissanayake arrived at Parliament to present the Budget 2026, his first full-year fiscal plan as Minister of Finance.
• 01:37 PM – The President officially began delivering the Sri Lanka Budget 2026 Speech, outlining key priorities for economic recovery, digital transformation, and fair taxation.
• 01:47 PM – He announced that the government aims to keep inflation below 5%, ensuring stable prices and sustainable growth.
• 01:49 PM – Finance Minister Dissanayake highlighted that Sri Lanka has achieved macroeconomic stability, with inflation easing and government revenue expected to reach 16% of GDP.
• 01:50 PM – The government targets to maintain the debt-to-GDP ratio at 87% by 2027, demonstrating a strong commitment to fiscal discipline and debt sustainability.
• 01:52 PM – A new Digital Assets Declaration System will be introduced in March 2026 to promote transparency and prevent tax evasion.
• 01:53 PM – Plans are underway to launch a national e-procurement system, increasing efficiency and reducing corruption in public-sector purchasing.
• 01:55 PM – The government will remove biased methods of granting tax concessions, ensuring a transparent and fair incentive framework for all investors.
• 01:57 PM – A comprehensive list of all businesses receiving tax exemptions will be published online twice a year for public review, strengthening fiscal accountability.
• 01:59 PM – The Port City Act and Strategic Development Act will be amended to ensure tax concessions are granted with transparency and due process.
• 02:01 PM – The SVAT system (Suspended VAT) will be abolished, and a VAT refund-based system introduced to simplify compliance and speed up refunds.
• 02:05 PM – A special committee of experts will be appointed to draft a Code of Ethics for Sri Lanka’s Judicial Service.
• 02:08 PM – Another expert committee will be formed to negotiate new Free Trade Agreements (FTAs) to expand export opportunities.
• 02:10 PM – The President reaffirmed a zero-tolerance policy for corruption, fraud, and criminal activity — stating that no one is above the law.
• 02:15 PM – Government revenue is projected to remain at 15.6% of GDP in 2026 and 15.4% in 2027, qualifying Sri Lanka for a 0.75% loan interest rate reduction, saving the nation about USD 7.5 million annually.
• 02:18 PM – Strong emphasis will be placed on accelerating digital transformation across both public and private sectors.
• 02:19 PM – Public investment is set to increase to 4% of GDP, with a focus on sustainable growth projects.
• 02:22 PM – A new legal framework has been implemented to strengthen control over government spending and reduce waste.
• 02:23 PM – The Finance Minister reaffirmed that every rupee of public funds will be managed with maximum responsibility and transparency.
• 02:24 PM – The RAMIS tax administration system will be upgraded to version 3.5 to improve automation and online tax services.
• 02:25 PM – The government aims to adjust the direct-to-indirect tax ratio from 25:75 to 40:60, promoting fairer tax distribution.
• 02:28 PM – A new Public-Private Partnership (PPP) Framework will be presented to Parliament early next year to attract long-term investments.
• 02:29 PM – Work has begun on drafting the Investment Protection Act, ensuring investor confidence and legal stability for both domestic and foreign investors.
• 02:31 PM – The budget deficit will be reduced to 5.2%, signaling fiscal responsibility and macroeconomic reform.
• 02:33 PM – A Single-Window Investment Facilitation System will be launched, with Rs. 100 million allocated for setup.
• 02:34 PM – The government will introduce a Resident Visa Program for foreign investors, encouraging more foreign direct investment (FDI).
• 02:35 PM – Rs. 100 million allocated to create a digital land information system for better land management and ownership transparency.
• 02:37 PM – Two new IT zones will be established in Digana and Nuwara Eliya under the BOI, supporting Sri Lanka’s growing digital economy.
• 02:38 PM – Institutions like IDB, NEDA, and SEDA will be restructured under the Industrial Development Board (IDB) to streamline SME support.
• 02:42 PM – SME entrepreneurs will receive loan facilities ranging from Rs. 15 million to Rs. 50 million, with funding already allocated.
• 02:44 PM – The minimum investment threshold for tax incentives has been reduced from USD 3 million to USD 250,000 to encourage SME participation.
• 02:45 PM – Rs. 2.5 billion will fund the creation of a National Single Window to simplify import–export processes.
• 02:49 PM – Rs. 1 billion allocated to enhance investment zone services, while internal airports in Jaffna, Hingurakgoda, and Sigiriya will be developed to promote regional tourism and logistics.
• 02:51 PM – Rs. 35.6 billion will be invested to advance digitalization in Sri Lanka, supporting public-sector efficiency.
• 02:52 PM – 900 state bungalows will be converted into income-generating properties through public–private partnerships (PPPs).
• 02:53 PM – The Digital National ID system will be rolled out by March 2026, with full implementation within the same year.
• 03:00 PM – All QR code payments below Rs. 5,000 will be exempt from service charges, promoting a cashless economy.
• 03:03 PM – The government will promote AI data centers and provide broadband vouchers for children of Aswesuma beneficiaries to bridge the digital divide.
• 03:05 PM – Digital tower investors will receive a five-year tax exemption, boosting ICT infrastructure.
• 03:12 PM – All government transactions will move to a fully digital payment platform, with no fees for online payments.
• 03:15 PM – The Agni Fund will be launched to support startups and innovation-led businesses.
• 03:17 PM – Additional funding will strengthen vocational training institutes to enhance youth employability.
• 03:19 PM – Private companies employing differently-abled workers will receive Rs. 15,000 per employee monthly for two years, backed by Rs. 500 million.
• 03:20 PM – The Mahapola Scholarship increased by Rs. 2,500 to support students.
• 03:22 PM – Rs. 31 billion allocated to upgrade hospitals nationwide over the next five years.
• 03:23 PM – Rs. 4.2 billion for the Suwasariya Ambulance Service, and Rs. 500 million for special needs day-care centers.
• 03:25 PM – Rs. 750 million allocated to establish AI Service Centers to foster digital innovation.
• 03:32 PM – From January 2026, the estate sector minimum wage increases from Rs. 1,350 to Rs. 1,550, plus a Rs. 200 daily incentive (Rs. 5 billion allocated).
• 03:34 PM – A housing loan program for Sri Lankans working overseas will be launched at concessionary rates.
• 03:35 PM – A pension fund will be created for migrant workers, ensuring retirement security.
• 03:45 PM – Measures announced to reduce human–elephant conflict and protect wildlife habitats.
• 03:46 PM – Rs. 24 billion for rural roads and Rs. 2.5 billion for rural bridges to improve connectivity.
• 03:47 PM – Rs. 1 billion for a milk industry feasibility study, aiming to meet 75% of domestic demand by 2030.
• 03:53 PM – Rs. 1 billion allocated for cattle and swine breeding programs to support the livestock sector.
• 03:56 PM – Rs. 3 billion for renovating the Badalgama Milco factory, enhancing milk production capacity.
• 04:01 PM – Rs. 350 million allocated for Valaichchenai Fishing Harbour development.
• 04:05 PM – Rs. 342 billion set aside for nationwide road development projects.
• 04:10 PM – Rs. 66.15 billion for Kadawatha–Mirigama Expressway construction under the expressway network expansion.
• 04:11 PM – Rs. 330 million allocated for a Port City–Marine Drive link study to ease Colombo traffic.
• 04:12 PM – Rs. 1 billion for a national road safety program targeting hazardous road sections.
• 04:23 PM – Funding allocated to complete pending highway sections across the country.
• 04:32 PM – A competitive bidding process introduced to improve public procurement transparency.
• 04:33 PM – Rs. 2 billion for feasibility studies in 10 cities including Jaffna, Eheliyagoda, Batticaloa, Chilaw, and Matara.
• 04:34 PM – Matale to be expanded to four lanes; Hatton to receive a new urban plan (Rs. 500 million allocated).
• 04:35 PM – Rs. 2.5 billion to support local authorities through income-based contributions.
• 04:36 PM – 27,000 new houses to be built in 2026, and Rs. 100 million allocated for a pet care pilot project in Kesbewa and Piliyandala.
• 04:38 PM – Over Rs. 33 billion for housing projects including 70,000 new homes, urban renewal, and resettlement programs.
• 04:49 PM – Rs. 1 billion allocated to digitize public service processes under the Digital Blueprint program.
• 04:51 PM – Rs. 12.5 billion to purchase vehicles and machinery for provincial institutions.
• 04:53 PM – Rs. 5 billion to settle EPF, ETF, gratuity, and tax arrears of state enterprises.
• 04:54 PM – Outstanding Treasury guarantees and letters of comfort to be cleared by end of 2026.
• 04:55 PM – The government will settle senior citizens’ interest arrears, paying Rs. 10 billion in 2025 and Rs. 45.7 billion in 2026.
• 04:59 PM – A Salaries and Pensions Commission will be created to address salary anomalies.
• 05:04 PM – Festive advance for government workers increased from Rs. 10,000 to Rs. 15,000.
• 05:05 PM – Teacher and principal allowances to increase by Rs. 1,500 each (Rs. 1 billion allocated).
• 05:06 PM – Railway gatekeeper allowance raised to Rs. 15,000 per month (Rs. 250 million allocated).
• 05:07 PM – Around 9,800 public employees to receive permanent appointments.
• 05:08 PM – Under the Public Financial Management Act, the government targets tax revenue above 15% of GDP to fund social investment.
• 05:09 PM – SVAT system abolished from October 2025, replaced by a refund-based VAT process; 300,000 new taxpayers registered.
• 05:09 PM – Tax revenue grew from Rs. 2.9 trillion (2024) to Rs. 3.8 trillion (2025), showing improved compliance.
• 05:10 PM – The government continues tax reforms promoting fairness and digital accountability.
• 05:10 PM – From April 2026, Special Commodity Levy on coconut and palm oil will be replaced by VAT and SSCL.
• 05:11 PM – From April 1, 2026, VAT and SSCL threshold reduced from Rs. 60 million to Rs. 36 million.
• 05:12 PM – From April 1, 2026, CESS on imported fabric removed and VAT applied.
• 05:12 PM – From April 2026, SSCL on vehicles will be collected at import or manufacturing stage; after-sales exempt.
• 05:14 PM – Customs duties revised to 0%, 10%, 20%, and 30% under the National Tariff Policy.
• 05:15 PM – From January 2026, a modern, risk-based tax audit system will be launched.
• 05:18 PM – Telecommunications Tax Act to be amended to cover bad debt provisions and AML enforcement.
• 05:19 PM – A national e-invoicing system to be implemented via API-based integration with RAMIS, beginning with pilot companies.
• 05:20 PM – In Phase 3, e-invoicing will connect to POS machines for real-time VAT monitoring.
• 05:21 PM – Rs. 2 billion allocated for a new Inland Revenue Department complex to improve efficiency and taxpayer services.
• 05:22 PM – Budget reports to be published earlier: Final Report by May 31 and Mid-Year Report by August 31.
• 05:52 PM – Finance Minister Anura Kumara Dissanayake concluded the Budget Speech 2026, thanking all contributors and urging collective effort for Sri Lanka’s recovery.