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05.56 pm:
“We will build a nation that is not only economically prosperous but also morally proud, globally respected and endowed with broad humanitarian qualities,” President Anura Kumara Dissnayake said, concluding the 2026 Budget speech.
05.50 pm:
President Anura Kumara Dissanayake said the borrowing limit for 2026 has been revised down by Rs. 60 billion to Rs. 3,740 billion, reflecting updated revenue estimates from the budget proposals.
05.40 pm:
The President says, Rs. 2,000 million has been allocated to establish a new office complex for the Department of Inland Revenue, bringing all operations under one roof to improve service delivery, support digitalization, and enhance the efficiency and sustainability of tax collection.
Sri Lanka is developing a national e-invoicing system using API-based integration between taxpayers’ ERP systems and RAMIS, according to the President.
Following a pilot phase, it will expand to export-oriented firms, then all VAT-registered taxpayers, and later to POS machines for real-time transaction tracking and improved VAT compliance.
The President says amendments will be made to the Telecommunications Tax Act to ensure bad debts and recoveries are reflected in levy payments.
Legal provisions will also be introduced to allow tax authorities to share information with enforcement agencies under the AML/CFT framework and strengthen measures for prosecuting tax-related crimes.
05.30 pm:
President Dissanayake said a modern tax audit framework will be introduced for returns filed from January 2026, using risk-based selection to improve transparency, reduce discretion, and curb corruption.
The President said Customs Import Duty rates will be revised to 0%, 10%, 20%, and 30% under the National Tariff Policy, with a phased plan to gradually eliminate para-tariffs while minimizing revenue loss.
The Social Security Contribution Levy on vehicle sales will be collected at the point of import, manufacture, or initial sale, and exempted from after-sales.
“There will be no change in the tax, but the manner in which the tax is collected has changed. There is no new tax, but if there was an opportunity to evade the social security tax, that would be prevented,” the President explained.
Effective April 1, 2026, CESS on imported fabric will be removed, and VAT will be imposed to align with the treatment of locally manufactured fabric, the President said.
05.23 pm:
To broaden the tax base, the government proposed to reduce the annual turnover threshold for VAT and Social Security Contribution Levy registration from Rs. 60 million to Rs. 36 million, effective April 1, 2026.
The President says it is proposed to remove the Special Commodity Levy on imported coconut oil and palm oil and apply the general tax structure, including VAT, starting April 2026.
The total number of registered taxpayers has increased by 300,000 as of September 30, 2025, compared to 2024, the President said.
The President says it is proposed to grant permanent appointments to all employees with over six months of service who meet the criteria outlined in Public Administration Circulars 25/2014 and 29/2019.
05.17 pm:
President Dissanayake said Rs. 250 million has been allocated to double the monthly allowance for 1,000 railway gatekeepers at unsafe crossings from Rs. 7,500 to Rs. 15,000 for an eight-hour shift.
To support teachers in remote areas, their allowance will be increased by Rs. 1,500 after 20 years, the President said.
Principal allowances will also rise by Rs. 1,500 in recognition of their leadership roles, with Rs. 1,000 million allocated for this purpose.
The President says Agrahara insurance contributions for public servants will increase, with the minimum contribution rising by Rs. 75, and Rs. 300 and Rs. 600 contributions increased by Rs. 150.
The festival advance for government employees will be raised from Rs. 10,000 to Rs. 15,000.
The distress loan limit for public servants will increase from Rs. 250,000 to Rs. 400,000 at a 4.2% interest rate, with Rs. 10,000 million allocated.
Additionally, Rs. 250 million is proposed to raise the minimum monthly allowance for railway gatekeepers from Rs. 7,500 to Rs. 15,000 for an eight-hour shift.
05.07 pm:
Rs. 11,000 million is required to settle unpaid EPF, ETF, gratuity, and tax arrears of 10 state-owned enterprises, the President said.
Rs. 5,000 million has been allocated for 2026 to begin phased payments, ensuring entitlements for current and retired employees.
The President said that due to the outdated and insufficient government vehicle fleet, Rs. 12,500 million has been allocated to procure essential vehicles and machinery for government institutions, including vehicles for Members of Parliament, which must be returned at the end of their term.
04.54 pm:
As part of state sector reforms, 21 institutions will be reorganized to consolidate functions, 14 research bodies merged into a single national institution, 9 entities converted into financially independent models, and 13 institutions liquidated due to outdated purposes, according to the President.
The President said a special housing assistance program will provide Rs. 2 million each to individuals formerly in children’s detention centres and to families of at-risk children, to purchase land, build, or renovate homes. Rs. 2,000 million has been allocated for this initiative.
04.49 pm:
Housing Development – Key Allocations
- Rs. 3,000 million allocated for the “A Place of Your Own- A Beautiful Life” housing programme to build 70,000 homes in the medium term, in addition to Rs. 7,200 million for 10,000 houses in 2026.
- Rs. 15,000 million allocated under the Urban Regeneration Project for housing in areas like Applewatta, Madampitiya, and others in Colombo and suburbs.
- Rs. 6,500 million allocated for 1,996 houses in several areas, including Moratuwa and Dematagoda, with Chinese government support. Some houses are to be provided to journalists and artists.
- Rs. 1,180 million allocated to renovate deteriorated government-built apartment complexes.
- Rs. 840 million allocated to relocate unauthorized settlers affecting the Kelani Valley Railway development.
Rs. 4,290 million has been allocated, with support from the Government of India, to build 2,000 houses for Malayagam estate workers in several provinces, the President said.
An additional Rs. 1,305 million has been allocated to complete 943 houses under construction in the Northern and Southern Provinces.
04.44 pm:
President Anura Kumara Dissanayake said in 2026, a new housing development programme will be implemented to support all social groups facing housing challenges, with plans to complete construction of 27,000 new homes, including ongoing projects.
04.41 pm:
The President said Rs. 100 million has been allocated to launch a pilot project in Kesbewa and Piliyandala local authorities to provide services for pet burial, cremation, and the care of stray animals, addressing growing demand in urban areas for responsible and humane pet care solutions.
President Dissanayake said Rs. 8,000 million has been allocated from the remaining 2025 capital expenditure to procure 700 solid waste transport machines, such as compactors, tractors, and trailers for local governments, with procurement already underway.
Rs. 900 million has been allocated under the Ministry of Public Administration, Provincial Councils, and Local Government for solid waste management, including the provision of vehicles and equipment for proper disposal and maintenance.
04.37 pm:
Sri Lanka aims to strengthen its position as a regional leader in port logistics by expanding Colombo Port’s capacity and improving efficiency, President Dissanayake said.
Key initiatives for next year include Phase I of the Western Container Terminal, feasibility studies for Port Logistics Centres, and the proposed Colombo North Port Development Project.
The Kerawalapitiya Customs Verification Centres in the Bloemaendal area will also be developed.
The President said construction of the second phase of Bandaranaike International Airport will begin in early 2026 with financial support from JICA.
The airport is being developed into a regional air cargo hub, including the expansion of cargo terminals and handling facilities. Advanced features like cold storage will be added through a Public-Private Partnership model.
04.29 pm :
An Energy Transition Act will be introduced next year to provide the required legal framework towards the modernization of electricity transmission and distribution, the President said.
The President said the government wishes to support new economic sectors driven by electricity, such as data centres, transport electrification, green hydrogen, and green ammonia, with an Integrated Economic Development Framework established, linking energy, digital, and transport sectors.
“On 28th October 2025, we opened two tenders for two power projects in Mullikulam. I am very proud to inform this House of 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 I Expansion Project, a 50 MW project, was awarded at an impressive price of US cents 4.65 per unit,” the President said.
04.21 pm:
President Dissanayake said Rs. 330 million has been allocated to conduct a feasibility study for a proposed link between the Port City end of the Port Access Elevated Highway and the Marine Drive Extension.
The project aims to ease traffic congestion near the Lotus Roundabout and improve connectivity to Colombo Port and Port City.
“The stretch between Ingurukade junction, through the port, Lotus roundabout, to Galle Face is a very congested area, especially due to tourist traffic. This is why there should be an alternate route from the Lotus Roundabout to the Marine Drive, through the sea, behind the Galle Face Hotel,” the President said.
The President says a number of stalled road infrastructure projects are now being resumed.
For 2026, Rs. 342 billion has been allocated for overall road development.
- Rs. 66,150 million for the construction of the Kadawatha–Mirigama section (Phase I) of the Central Expressway
- Rs. 10,500 million for completion of the Pothuhera–Rambukkana section (Phase III), scheduled by early 2027
- Rs. 20,000 million for starting the Rambukkana–Galagedara section, funded through domestic sources
- Feasibility studies to begin for widening the Katugastota–Galagedara road
- Budget provisions included to upgrade access roads to Kandy, alongside the Kandy Multi-Modal Transport Centre, to ease urban traffic congestion
- Rs. 1,000 million has been allocated to complete land acquisition for the proposed Kurunegala–Dambulla Expressway.
- Rs. 1,500 million has been allocated for ongoing land acquisition for the Kahathuduwa–Ingiriya section of the Ruwanpura Expressway. The project, previously suspended, will be reassessed based on updated feasibility studies.
04.08 pm:
The 2026 budget allocates Rs. 67,200 million to improve public transportation. This includes Rs. 3,600 million for 600 new SLTB buses, Rs. 2,062 million to replace 307 worn-out engine units, and Rs. 790 million for depot upgrades.
The President said Rs. 3,300 million is set aside for five new Diesel Multiple Units (DMUs) for Sri Lanka Railways and ongoing digitalization efforts, including e-ticketing.
Additionally, Rs. 2,000 million will support rural transport routes affected by reduced private bus services.
04.05 pm:
Rs. 85,700 million has been allocated for drinking and community water supply projects in key districts, as access currently meets only 62% of national demand.
Private sector collaboration is essential to support infrastructure development, the President stressed.
04.03 pm:
The President said that to mitigate flood risks in areas such as Colombo, Gampaha, Galle, Ampara, Mannar, and Puttalam, an integrated plan will be developed in collaboration with relevant agencies.
Rs. 250 million has been allocated for a medium-term framework.
04.01 pm:
President Dissanayake said the total Allocation for Irrigation is Rs. 91,700 million to boost agriculture, regional development, and job creation by resuming suspended projects.
The President said Rs. 500 million has been allocated for improving infrastructure at wharves to reduce post-harvest losses.
Rs. 100 million allocated to develop a satellite-based system for identifying fish grounds and sharing information with fishermen and Rs. 100 million allocated for upgrading aquaculture centres to boost fish seed supply and enhance freshwater fish availability, he said.
03.56 pm:
President Dissanayake said Rs. 2,500 million has been allocated to implement a program to increase productivity and exports in the coconut sector by supporting small-scale growers with less than five acres, who form part of the 447,000 acres under coconut cultivation.
Rs. 600 million has been allocated to expand coconut cultivation in the Northern Coconut Triangle, following recommendations from the Coconut Research Institute, the President said.
The President said Rs. 3,000 million will be allocated to resume and complete the stalled Badalgama Dairy Factory project, including machinery repairs and factory renovations.
The project, halted since 2022 after Rs. 18,000 million in public funds had already been spent, aims to boost local milk production and support the national economy. The Narahenpita Milk Factory is proposed to be moved to this location.
03.50 pm:
President Dissanayake said Rs. 1,000 million has been allocated for the preliminary work, including the feasibility study of this project under the “Small and Medium-sized Livestock Development Programme.
03.47 pm:
The President said Rs. 250 million will be allocated to complete construction and install a solar panel system at the non-operational Dambulla Cold Storage facility, which has a 5,000 metric ton capacity.
The government also plans to explore improved management and operational methods for the facility. The President acknowledged that the facility is not operational in its current state.
03.46 pm:
The President said the 2026 budget proposes government support for the operational and essential capital expenses of the Sri Lanka Broadcasting Corporation, Sri Lanka Rupavahini Corporation, and Independent Television Network due to financial difficulties.
Additionally, Rs. 100 million will be allocated for higher education scholarships and technical training to enhance journalists’ skills in line with modern media advancements, he said.
03.44 pm:
The President said Rs. 240 million has been allocated to uplift self-employment, household industries, etc., carried out by women entrepreneurs across the island at the Divisional Secretariat level.
He further said that an additional Rs. 200 million is proposed to be allocated for programmes aimed at the welfare of women.
President Dissanayake said Rs. 50 million has been allocated to the existing allocations to promote drama, performing arts and literature as an area of cultural enrichment.
03.41 pm:
President Dissanayake said that to strengthen wildlife conservation and mitigate human-elephant conflict
- Rs. 1,000 million allocated for completing electric fence construction and related activities.
- Rs. 300 million allocated to repair, complete, or construct electric fences in essential areas.
- Approval granted to procure 294 essential vehicles and modern communication equipment for the Department of Wildlife Conservation.
- Rs. 375 million allocated for food and fuel allowances to support 5,000 Civil Security Service officers assigned to wildlife monitoring.
- Officers will receive special training and be permanently attached to monitor elephant enclosures.
- Rs. 80 million allocated for pasture and water source management to ensure adequate food and water for elephants.
03.40 pm:
The President said Rs. 4.2 billion has been allocated for the Suwa Seriya Ambulance Service.
03.38 pm:
The President said a concessional housing loan scheme and a contributory pension scheme will be introduced for Sri Lankan migrant workers in recognition of their contribution to the country’s foreign exchange earnings.
The programs will be implemented using funds from the Sri Lanka Bureau of Foreign Employment (SLBFE), with Rs. 2,000 million allocated for the initial phase.
03.35 pm:
The President said the daily wage for estate workers is to be increased from Rs. 1,350 to Rs. 1,750 by January 2026.
“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.”
“If tea estates are not properly managed, fertilized, and crops are not developed, they will be taken over by the state. Agreements will not be renewed after 2041. The industry is 150 years old. If the management can’t still pay a worker a daily wage of Rs. 1750, what is the meaning of this industry?,” the President questioned.
03.27 pm:
President Dissanayake said Health Centres will be established across the country to serve between 5,000 and 10,000 people each.
Rs. 1,500 million to be allocated for the pilot project to introduce Primary healthcare centres, he said.
The President said Rs. 11,000 million has been allocated for medical faculties in state universities.
Rs. 200 million has been allocated for initial work, including the feasibility study and contract preparations, for the construction of a state-of-the-art, 16-storey cardiac hospital, which is expected to be completed within three years, the President said.
03.23 pm:
The President said Rs. 50 million will be allocated to provide Rs. 5,000 in educational assistance for differently-abled children, encouraging these children to be integrated into the mainstream education.
The Mahapola and student allowance for university students will be increased by Rs. 2,500.
The monthly allowance for students of teacher training colleges will be increased by Rs. 2,500, he said.
03.19 pm:
Rs. 500 million has been allocated to strengthen day-care centers that provide care for children with autism and other special needs, the President said.
03.17 pm:
The President said the government proposes to provide an allowance of up to Rs. 15,000, covering 50% of the salary, for any differently-abled individual employed by a private company, for a period of up to two years.
An allocation of Rs. 500 million has been set aside for this initiative, he said.
03.15 pm:
President Dissanayake says service accessibility will be improved for the differently-abled community with an allocation of Rs. 1000 million.
Rs. 2000 million has been allocated for the ‘Ratama Ekata’ program, including urgent prison reforms, the President said.
The President says it has been proposed to establish a virtual economic zone to promote investments. He said discussions are underway with the BOI in this regard.
03.10 pm:
The President said Rs. 6,500 million has been allocated to the Clean Sri Lanka Initiative.
President Dissanayake said a five-year tax exemption will be granted for digital communication towers. The government has decided to construct 100 towers.
03.07 pm :
The Agni Fund will be established to accelerate the startup ecosystem, with Rs. 1,500 million allocated under the Digital Economy Ministry’s expenditure head, the President said.
03.06 pm :
The President said that a broadband voucher will be provided to children from Aswesuma beneficiary households and low-income families, with access limited to approved educational websites, the president said, to promote inclusive digital access.
President Dissanayake said all government payments will be brought under a digital payment system.
He further said no service charges will be imposed for online payments.
03.02 pm :
The President said the first Digital National Identity Card will be issued by March 2026.
The data will be entered and managed by a Sri Lankan company, with no scope for it to be accessed by any foreign entity, the president said.
Leading Sri Lankan experts have contributed their scientific input to the process, he said.
Despite some attempts to challenge it through legal action, he expressed gratitude to the Supreme Court for dismissing the petition.
03.00 pm:
President Dissanayake said that Rs. 2,500 million has been proposed to develop Beira Lake into a tourist attraction in Colombo.
02.56 pm:
The President said Rs. 1,000 million will be allocated to develop the Hingurakgoda, Sigiriya, and Trincomalee domestic airports, and to expand operations at Jaffna Airport. The Civil Aviation Authority will be involved for this purpose.
President Dissanayake said that within the first half of next year, all halted projects at the Katunayake Airport will be restarted.
02.54 pm:
President Dissanayake said state bungalows will be turned into profitable ventures under a Public-Private Partnership. A total of 900 such buildings have been identified.
He further said Haputale will be developed as a key tourist destination.
02.50 pm :
The President said funds have been allocated to provide loans of up to Rs. 50 million at concessionary interest rates for small and medium-scale entrepreneurs.
Rs. 800 million is proposed to be allocated to establish a sustainable Agricultural Loan Fund, he said.
The President said Rs. 5,900 million was allocated for loans to small and medium-scale entrepreneurs.
02.47 pm:
President Dissanayake said Rs. 1,000 million has been allocated for the development of services related to investment zones.
The President says Rs. 250 million will be allocated to the Export Development Board to promote and facilitate exports.
02.42 pm :
President Dissanayake said Rs. 2500 million was allocated to create the National Single-Window (NSW) framework for trade this year.
02.41 pm:
President Dissanayake says two technical institutes built in Kurunegala and Galle are now abandoned.
Their outstanding debts will be settled this year, and the institutions will be reopened for private sector investment.
The President said two IT zones are planned in Digana and Nuwara Eliya under the BOI.
Investors will be provided with residence visas based on their investments with the BOI.
02.35 pm:
The President said steps are being taken to bring the direct and indirect tax rates to a 60:40 ratio.
02.31 pm :
President Anura Kumara Dissanayake said the Strategic Development Projects Act and the Port City Commission Act will be amended at the beginning of 2026, through which they expect to streamline foreign investments in Sri Lanka.
02.27 pm :
The President said it is projected that State revenue will exceed 15.3% of the GDP by 2026.
Our goal is to increase this up to 20% in the long term, he said.
02.22 pm:
The President said unemployment has reduced from 4.5% in the first quarter of 2024 to 3.8% in the first quarter of 2025.
02.19 pm :
A potential growth opportunity of USD 15 million has been identified in the digital economy, the president said.
02.18 pm :
The President said this year’s debt servicing totals USD 2,435 million, of which USD 1,948 million was repaid by September.
The remaining USD 487 million is scheduled for repayment by December.
This marks an increase of USD 761 million compared to last year, he said.
02.16 pm :
The President says Letters of Credit worth 1,333 million US dollars have been issued for vehicle imports by October 31, this year. We have brought vehicles for USD 1363 million.
On debt repayments, the president said the government aims to reduce the debt-to-GDP ratio to below 90% by 2032, and expressed confidence in achieving this target.
02.08 pm :
President Anura Kumara Dissanayake said import revenue has increased by USD 02 billion by September this year, and the government expects it to increase by the same amount this month too.
We anticipate achieving a 7% economic growth rate over the medium term, the president said.
02.07 pm:
President Dissanayake said that a digital assets system will be introduced in 2026.
02.03 pm :
The President said an expert committee is expected to be appointed to draft a code of ethics for the judicial service.
01.59 pm :
The President said the US$ 210 million debt component of SriLankan Airlines would be restructured this year.
President Dissanayake said that the government plans to introduce an e-procurement system soon.
01.57 pm :
The president said the country’s official reserve assets are expected to approach USD 7 billion by year-end.
01.55 pm:
Foreign direct investment reached USD 823 million by September this year, reflecting renewed investor confidence, the President said.
01.45 pm:
The Aswesuma beneficiaries will be reviewed in 2026 to ensure the welfare program remains free from political influence, the President said.
President Anura Kumara Dissanayake said while previous leaders projected a return to 2019 economic levels by 2029, his government expects to restore Sri Lanka’s pre-crisis economy by the end of 2025.
President Anura Kumara Dissanayake stated in his budget speech that the government aims to keep inflation below 5%.
He claimed foreign exchange levels are stable, and that both exports and foreign remittances remain strong.
01.35 pm:
President Anura Kumara Dissanayake has commenced presenting the Appropriation Bill for the 2026 financial year to Parliament.
The total estimated government expenditure from 01 January 2026 to 31 December 2026 has been set at Rs. 4,434 billion.
Prime Minister Harini Amarasuriya today presented in Parliament the Appropriation Bill for the 2026 financial year.
The Appropriation Bill for the 2026 financial year outlines the government’s proposed expenditure for the year from 01 January 2026 to 31 December 2026.
01.20 pm:
President Anura Kumara Dissanayake has arrived in Parliament to present the Appropriation Bill for the 2026 financial year.
The President, in his capacity as Minister of Finance, will deliver the second reading of the Appropriation Bill for the year 2026, commonly referred to as the Budget Speech.