Harsha slams 2026 Budget, decries Rs. 1 t deception

• SJB MP points to Rs. 1 t deception; says Treasury overflowing while poor taxed more
• Says Budget 2026 built on broken promises, false narratives
• Labels housing, loan plans for State workers “a joke”
• Warns of new property tax and record Rs. 3.8 t borrowing
• Accuses Govt. of failing youth, SMEs and elderly

Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva has slammed the 2026 Budget as a betrayal of public trust, built on false narratives and unrealistic promises. 

“In my detailed response to the 2026 Budget speech, I exposed a Government that has not only failed to deliver on its core election promises but has presented a Budget that is a betrayal of the very people who voted for it,” he said in a statement.

While acknowledging that the Government has maintained the macroeconomic stabilisation achieved by the previous administration, Dr. de Silva said it has “no plan for economic growth.” He described the Budget as “not a system change, but the same old thing wrapped in a new flag.”

Pointing to what he terms a Rs. 1 trillion deception, Dr. de Silva alleged that the Treasury is overflowing with an unanticipated Rs. 1 trillion surplus generated mainly from vehicle imports worth more than $1.4 billion. 

“Instead of using this surplus to provide relief, the Government is increasing the tax burden,” he said. He accused the administration of widening the VAT net by lowering the threshold from Rs. 5 million to Rs. 3.6 million per month, a move that would hit small businesses directly. 

He also claimed the Government had secretly agreed to introduce a new property tax in early 2027.

Calling the housing allocations “a cruel joke,” Dr. de Silva said the Rs. 10.2 billion earmarked for 7,000 houses equates to Rs. 1 million per unit. 

“With construction costs at Rs. 10,000 per square foot, this is enough for only a 100-square-foot structure. This is not a home; it is an insult,” he said. 

Dr. de Silva also criticised the concessional housing loan scheme for state employees, which he said provides only Rs. 500 million in total, enough for 416 workers out of 1.4 million. 

“This is not a policy; it’s a lottery,” he said, adding that the real problem was the crippling taxes on building materials, including 49% on cement, 60% on bathroom fittings, and 92% on PVC pipes.

The MP accused the Government of perpetuating a ‘no system change’ policy while planning to borrow Rs. 3.8 trillion in 2026, Rs. 3. 11 trillion domestically and Rs. 700 billion from abroad. 

“They are taking credit for stabilisation achieved by the previous Government when inflation fell from 17% to 1% and the dollar from Rs. 370 to Rs. 294. Now, under their watch, the rupee is depreciating again, hitting Rs. 307,” Dr. de Silva said.

He said the Budget betrays the youth who voted for the Government’s promises of jobs, tax relief, and support for SMEs. 

“Promised State sector jobs are indefinitely postponed. The pledge to raise the tax-free income threshold to Rs. 200,000 was broken. Freelancers who previously paid 0% are now taxed at 15%,” he said. He added that the much-promised ‘Relief Bank’ for struggling SMEs had not materialised and claimed the ‘rice mafia’ remained stronger than ever, squeezing out small millers.

Dr. de Silva also dismissed the Government’s Foreign Direct Investment (FDI) figures as misleading. 

“Of the claimed $ 823 million in FDI, 54% came from projects initiated under previous Governments, including $ 229 million from the Adani Port,” he said. 

He warned that exporters were in crisis after the removal of the SVAT system, with promised refunds delayed beyond 45 days. “There was complete silence on crucial trade deals like RCEP and ECTA, showing no political will to walk the talk,” he said.

He accused the Government of failing to tackle corruption and neglecting senior citizens. 

“While I support the anti-corruption talk, new irregularities are emerging, such as a tender for 1,775 double-cabs where the mandatory bid period was cut from 42 days to just 12,” he said. 

“There is also no progress on pensions for the informal sector, and the Government has secretly agreed with the IMF to stop the interest subsidy on senior citizens’ fixed deposits by the end of this year, a crucial fact omitted from the Budget speech,” Dr. de Silva alleged.

Concluding his critique, Dr. de Silva said the 2026 Budget was not a vehicle for change but a document of broken promises that fails to meet the real needs of the youth, the elderly, and the country’s key economic drivers.