{"id":152892,"date":"2025-11-07T16:31:17","date_gmt":"2025-11-07T23:31:17","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=152892"},"modified":"2025-11-07T16:31:17","modified_gmt":"2025-11-07T23:31:17","slug":"president-anura-kumaras-budget-speech-2026-summary","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2025\/11\/07\/president-anura-kumaras-budget-speech-2026-summary\/","title":{"rendered":"President Anura Kumara\u2019s Budget Speech 2026: Summary"},"content":{"rendered":"

Courtesy The Daily Mirror<\/em><\/span><\/h2>\n\n\n

Colombo, Nov. 7(Daily Mirror) – President Anura Kumara Dissanayake is currently presenting the Budget 2026 in Parliament, unveiling a series of allocations and reforms.<\/p>\n\n\n\n

So far, the proposals reflect a reform-driven and inclusive direction \u2014 highlighting investments in health services, digital infrastructure, education, and support for vulnerable groups. The budget emphasizes fiscal consolidation<\/strong>, digital transformation<\/strong>, and inclusive development<\/strong>, with notable investments in healthcare, transport, rural infrastructure, <\/strong>and<\/strong> welfare<\/strong>.<\/p>\n\n\n\n

Macroeconomic & Fiscal Direction<\/strong><\/h3>\n\n\n\n
    \n
  • The 2026 Budget targets a deficit of 5.2% of GDP, reflecting continued fiscal consolidation.<\/li>\n\n\n\n
  • State revenue is expected to rise to 15.3% of GDP by 2026, aligning with debt sustainability targets.<\/li>\n\n\n\n
  • Debt-to-GDP ratio will be reduced to 95%, and further to 87% by 2030.<\/li>\n\n\n\n
  • Inflation will be maintained below 5% through disciplined monetary policy.<\/li>\n\n\n\n
  • The economy is projected to grow at 7% annually, driven by investment and productivity-led expansion.<\/li>\n\n\n\n
  • A competitive bidding system for government procurement is introduced to ensure fair pricing and eliminate irregularities.<\/li>\n\n\n\n
  • E-procurement and digital asset management systems will be launched in 2026.<\/li>\n\n\n\n
  • The Social Security Contribution Levy will be charged at the point of import, manufacture, or sale of vehicles, effective April 2026, exempting after-sales transactions.<\/li>\n\n\n\n
  • The Special Commodity Levy on imported coconut and palm oil will be replaced with the standard VAT-based tax structure, effective April 2026.<\/li>\n<\/ul>\n\n\n\n

    Public Sector Employment & Benefits<\/strong><\/h3>\n\n\n\n
      \n
    • All employees serving over six months under Public Administration Circulars 25\/2014 and 29\/2019 will be granted permanent appointments.<\/li>\n\n\n\n
    • Rs. 110 billion allocated for the second phase of the 2025 salary revision, effective January 2026.<\/li>\n\n\n\n
    • Rs. 20 billion allocated for the second phase of pension revisions.<\/li>\n\n\n\n
    • Distress loan limit for public servants increased from Rs. 250,000 to Rs. 400,000 at 4.2% interest, with Rs. 10 billion allocated for disbursement.<\/li>\n\n\n\n
    • Festive advance for public employees increased from Rs. 10,000 to Rs. 15,000.<\/li>\n\n\n\n
    • Agrahara Insurance Scheme contributions increased by Rs. 75 minimum and Rs. 150 for higher tiers.<\/li>\n\n\n\n
    • Rs. 250 million allocated to raise the railway gatekeeper allowance from Rs. 7,500 to Rs. 15,000 per month.<\/li>\n\n\n\n
    • 75,000 new recruits to be added to the public service in technical, revenue, and law enforcement roles.<\/li>\n\n\n\n
    • Rs. 12.5 billion allocated for vehicles and machinery for government institutions and to replace vehicles for outgoing parliamentarians.<\/li>\n<\/ul>\n\n\n\n

      Housing & Urban Development<\/strong><\/h3>\n\n\n\n
        \n
      • Rs. 15 billion under the Urban Regeneration Project to construct housing in Colombo and suburbs (Applewatta, Madampitiya, Fergusson Mawatha, Obeysekarapura, Stadiumgama, Colombage Mawatha, Torrington Place).<\/li>\n\n\n\n
      • Rs. 3 billion for 70,000 houses and Rs. 7.2 billion for 10,000 houses under the A Place of Your Own \u2013 A Beautiful Life\u201d program for low-income families.<\/li>\n\n\n\n
      • Rs. 4.29 billion, with assistance from the Government of India, for 2,000 houses for Malayagam estate workers in multiple provinces.<\/li>\n\n\n\n
      • Rs. 840 million allocated for resettlement of unauthorized settlers along the Kelani Valley Railway.<\/li>\n\n\n\n
      • Rs. 1.18 billion to renovate old government-built apartment complexes.<\/li>\n\n\n\n
      • Rs. 2 billion allocated for urban development feasibility studies in 10 cities including Jaffna, Eheliyagoda, Batticaloa, Chilaw, and Matara.<\/li>\n\n\n\n
      • Rs. 900 million for solid waste management, equipment, and vehicles for local councils.<\/li>\n\n\n\n
      • Rs. 500 million to expand Matale City to four lanes and prepare a traffic management plan for Hatton.<\/li>\n\n\n\n
      • Rs. 100 million allocated for a pilot project for stray dog and pet management in urban areas.<\/li>\n<\/ul>\n\n\n\n

        Roads, Transport & Connectivity<\/strong><\/h3>\n\n\n\n
          \n
        • Rs. 34.2 billion allocated for road development, including Rs. 10.5 billion for the Central Expressway (Potuhera\u2013Galagedara) and Rs. 20 billion for the Rambukkana\u2013Galagedara segment.<\/li>\n\n\n\n
        • Rs. 1.5 billion allocated for Ruwanpura Expressway land acquisition and reassessment.<\/li>\n\n\n\n
        • Rs. 1 billion allocated to complete Kurunegala\u2013Dambulla Expressway land acquisition.<\/li>\n\n\n\n
        • Rs. 1 billion for a comprehensive national road-safety program.<\/li>\n\n\n\n
        • Rs. 250 million allocated for short-term flood mitigation and Rs. 500 million for long-term flood control projects.<\/li>\n\n\n\n
        • Rs. 24 billion for rural road construction and Rs. 2.5 billion for rural bridges.<\/li>\n\n\n\n
        • Rs. 790 million for equipment upgrades at SLTB depots and workshops.<\/li>\n\n\n\n
        • Rs. 2.06 billion to replace engine units in 307 SLTB buses.<\/li>\n\n\n\n
        • Rs. 3.6 billion for 600 new long-distance SLTB buses.<\/li>\n\n\n\n
        • Rs. 3.3 billion to procure five new Diesel Multiple Units (DMUs) for Sri Lanka Railways.<\/li>\n<\/ul>\n\n\n\n

          Agriculture, Livestock & Irrigation<\/strong><\/h3>\n\n\n\n
            \n
          • Rs. 91.7 billion allocated for irrigation infrastructure, including restoration of Senanayake Samudraya, Gal Oya, Rajanganaya, Huruluwewa, and Minneriya.<\/li>\n\n\n\n
          • Rs. 5 billion allocated for the Lower Malwathu Oya Multipurpose Project.<\/li>\n\n\n\n
          • Rs. 50 million to recommence the Mundeni Aru Project.<\/li>\n\n\n\n
          • Rs. 3 billion for the renovation of the Milco Badalgama Factory.<\/li>\n\n\n\n
          • Rs. 1 billion each for cattle and swine breeding and milk production (aiming for 75% self-sufficiency by 2030).<\/li>\n\n\n\n
          • Rs. 600 million for the Jaffna Coconut Triangle development.<\/li>\n\n\n\n
          • Rs. 250 million to install solar panels at the Dambulla cold storage facility.<\/li>\n<\/ul>\n\n\n\n

            Fisheries & Coastal Development<\/strong><\/h3>\n\n\n\n
              \n
            • Rs. 350 million for the Valaichchenai Fishing Harbour development.<\/li>\n\n\n\n
            • Rs. 500 million for wharf infrastructure to improve the livelihoods of fishing communities.<\/li>\n\n\n\n
            • Rs. 100 million each for life-saving equipment for fishermen, satellite-based fish-ground tracking systems, and aquaculture development centres.<\/li>\n<\/ul>\n\n\n\n

              Health, Social Welfare & Inclusion<\/strong><\/h3>\n\n\n\n
                \n
              • Rs. 11 billion for medical faculties in state universities.<\/li>\n\n\n\n
              • Rs. 4.2 billion for the Suwasariya Ambulance Service.<\/li>\n\n\n\n
              • Rs. 1.5 billion to introduce Primary Healthcare Centres nationwide.<\/li>\n\n\n\n
              • Rs. 200 million to establish a National Cardiologic Hospital in Colombo.<\/li>\n\n\n\n
              • Rs. 250 million to provide a monthly Rs. 10,000 allowance for thalassaemia patients.<\/li>\n\n\n\n
              • Rs. 500 million for day-care centres for children with disabilities, including autism.<\/li>\n\n\n\n
              • Rs. 750 million for AI Service Centres.<\/li>\n\n\n\n
              • Rs. 1 billion to relocate Dambulla and Deniyaya Hospitals.<\/li>\n\n\n\n
              • Rs. 570 million for a Community Science and Health Survey.<\/li>\n\n\n\n
              • Rs. 50 million for educational support for differently-abled children, and a Rs. 5,000 monthly allowance for those pursuing higher education.<\/li>\n\n\n\n
              • Mahapola Scholarship increased by Rs. 2,500.<\/li>\n\n\n\n
              • 3% of all state recruitments reserved for persons with disabilities.<\/li>\n<\/ul>\n\n\n\n

                Employment, SMEs & Women\u2019s Empowerment<\/strong><\/h3>\n\n\n\n
                  \n
                • Rs. 5.9 billion in loans for small and medium enterprises.<\/li>\n\n\n\n
                • Rs. 800 million for a Sustainable Agricultural Loan Fund.<\/li>\n\n\n\n
                • Rs. 240 million allocated for self-employment and women entrepreneurs, and Rs. 200 million for women\u2019s welfare programs.<\/li>\n\n\n\n
                • Estate workers\u2019 daily wage to increase from Rs. 1,350 to Rs. 1,750 by January 2026, with a government attendance incentive.<\/li>\n\n\n\n
                • Rs. 2 billion from the Foreign Employment Bureau to establish a pension scheme for migrant workers in 2026.<\/li>\n<\/ul>\n\n\n\n

                  Digital Transformation & Innovation<\/strong><\/h3>\n\n\n\n
                    \n
                  • All government payments to become fully digital, with no fees for QR transactions below Rs. 5,000.<\/li>\n\n\n\n
                  • Digital ID cards to be issued by March 2026.<\/li>\n\n\n\n
                  • Establishment of a Virtual Economic Zone to attract investment and innovation.<\/li>\n\n\n\n
                  • Five-year tax concession for digital communication towers.<\/li>\n\n\n\n
                  • Installation of 100 new telecom towers nationwide.<\/li>\n\n\n\n
                  • Broadband vouchers for low-income students to improve digital access.<\/li>\n\n\n\n
                  • Rs. 6.5 billion allocated for the Clean Sri Lanka Initiative to enhance sanitation and environmental sustainability.<\/li>\n<\/ul>\n\n\n\n

                    Governance & Reform Commitments<\/strong><\/h3>\n\n\n\n
                      \n
                    • 900 state bungalows to be transformed into Public-Private Partnership (PPP) ventures.<\/li>\n\n\n\n
                    • Introduction of a residence visa system for tourists.<\/li>\n\n\n\n
                    • Expert committee to draft a Judicial Code of Ethics.<\/li>\n\n\n\n
                    • The President reiterated zero tolerance for corruption:

                      Regardless of position, those engaging in fraud or corruption will be punished.\u201d<\/em><\/li>\n<\/ul>\n\n\n\n

                      Sri Lanka\u2019s Budget 2026 positions the nation for a sustained post-crisis recovery, steering toward a resilient, technology-driven, and inclusive economy.<\/p>\n\n\n\n

                      As of 5.45pm<\/p>\n\n\n\n

                      <\/p>\n","protected":false},"excerpt":{"rendered":"

                      Courtesy The Daily Mirror Colombo, Nov. 7(Daily Mirror) – President Anura Kumara Dissanayake is currently presenting the Budget 2026 in Parliament, unveiling a series of allocations and reforms. So far, the proposals reflect a reform-driven and inclusive direction \u2014 highlighting investments in health services, digital infrastructure, education, and support for vulnerable groups. The budget emphasizes fiscal consolidation, digital […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-152892","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/152892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=152892"}],"version-history":[{"count":1,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/152892\/revisions"}],"predecessor-version":[{"id":152893,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/152892\/revisions\/152893"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=152892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=152892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=152892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}