Ceylon Chamber says Budget 2027 signals economic transformation, highlights gaps

• Warms timely implementation will be key
• Highlights several areas where Budget could have placed greater emphasis to strengthen FDI, accelerating land and labour reforms, and fast-tracking public procurement reforms 
• Notes more targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics

The Ceylon Chamber of Commerce yesterday said it encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline. 

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory. The Chamber observes that the Budget contains several positive measures aimed at enhancing competitiveness, and external sector resilience, while also presenting opportunities for greater focus on several high-potential sectors that can further accelerate growth,” the Chamber said in a statement.

The Chamber is particularly encouraged by the strong continuity maintained between the 2026 and 2027 Budgets. A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors. 

These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises. 

The Chamber also notes with satisfaction that more than 20 proposals submitted by the Chamber have been reflected in Budget 2027. These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor program with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital Government services; and the promotion of cashless payments and broader digital adoption. 

The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimise underutilised agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters. The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy. 

At the same time, the Chamber highlights several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects. 

In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation. More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.

Overall, the Ceylon Chamber views Budget 2027 as an important step in advancing Sri Lanka’s economic transformation, building on ongoing reforms and incorporating several recommendations advocated by the Chamber. 

The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth. The Chamber stands ready to work where possible with the Government and other stakeholders to support the implementation of these initiatives and help move Sri Lanka from economic stabilisation to sustained growth, the Chamber said.