Wednesday Sep 10, 2025
Wednesday Sep 10, 2025
Wednesday, 10 September 2025 05:50 - - {{hitsCtrl.values.hits}}
President and Finance Minister Anura Kumara Disanayake
Cabinet Spokesperson, Health and Mass Media Minister Dr. Nalinda Jayatissa said yesterday that the Cabinet of Ministers has approved the draft Appropriation Bill for 2026 and cleared its publication ahead of being tabled in Parliament 3 October.
The Budget Speech is scheduled for 7 November, with the Parliament debate the following day.
The Bill, prepared by the Legal Draftsman’s Department, has received clearance from the Attorney General and will be published in the Government Gazette before being presented in Parliament, he told journalists yesterday.
The proposal was submitted by President Anura Kumara Disanayake in his capacity as Minister of Finance, Economic Planning and Development. The Cabinet had earlier, on 1 July, granted approval for drafting the Bill, which sets out allocations for each ministry and marks the first stage of the budgetary process.
Once tabled, the Bill will constitute the first reading of the 2026 Budget. The second reading, when the Finance Minister delivers the formal Budget Speech, will outline measures to finance expenditure and close any deficit.
Dr. Jayatissa said the Government was preparing the 2026 Budget with a focus on growth. “We stabilised the economy, now we need to focus on growth and ensure that citizens across the country benefit by it,” he said.
IMF projections in July 2025 estimated Sri Lanka’s Budget deficit would fall to 5.4% of GDP this year, compared to 5.6% in 2024, and narrow further to 4.5% in 2026. Revenues are expected to rise from 13.7% of GDP in 2024 to 15% this year and 15.2% in 2026, while expenditure is projected to fall from 20.5% of GDP in 2025 to 19.7% in 2026.
The Government has reported a 36.3% year-on-year reduction in the fiscal deficit in the first seven months of 2025, with revenue collection on target and expenditure growth contained (see: https://www.ft.lk/top-story/End-July-Budget-deficit-down-36-YoY/26-781055). The Budget deficit in nominal terms fell to Rs. 556.1 billion in the first seven months of 2025, down from Rs. 872.6 billion in the same period of 2024.
External debt restructuring is 98% complete with debt servicing of $ 1.36 billion already been met in the first half of the year, covering 55% of obligations due for 2025.
The IMF in its July 2025 review credited Sri Lanka’s reform program for stabilising the economy, citing progress on growth, inflation, reserves, and revenue. It stressed, however, that sustaining reform momentum will be key to strengthening recovery and resilience amid global uncertainties.
