Saturday Nov 15, 2025
Saturday Nov 15, 2025
Saturday, 15 November 2025 00:23 - - {{hitsCtrl.values.hits}}
MP Dr. Harsha De Silva (right) chairing the CoPF review of the draft report on the 2026 Appropriation Bill
The Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva, has reviewed the draft report on the Appropriation Bill for the 2026 financial year, noting that it aligns with the International Monetary Fund (IMF) program commitments.
The Committee highlighted both improved fiscal space from higher 2025 revenue and fresh challenges ahead as vehicle import–driven revenue slows.
The draft report prepared under Standing Order 121(5)(i) on the Appropriation Bill for Financial Year 2026 was taken up for consideration at a recent meeting of the Committee on Public Finance (COPF) held this week in Parliament.
The report, compiled by the Committee’s technical team, confirms that the 2026 Appropriation Bill aligns with key requirements under the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and commitments under the IMF-supported reform program.
The IMF said this week that it was examining Sri Lanka’s 2026 Budget ahead of its Executive Board review of the recently concluded fifth review under the Extended Fund Facility (EFF) program. The next $ 347 million tranche will be released if the 2026 Budget aligns with EFF program parameters.
Meanwhile, Fitch Rating this week said the Budget demonstrated that President Anura Kumara Dissanayake’s Government was committed to fiscal reforms.
CoPF highlighted the stronger-than-expected revenue performance in 2025, with collections exceeding projections by Rs. 100 billion, largely due to higher income from vehicle import taxes. This unexpected revenue boost, the report states, has provided greater flexibility for planning the 2026 fiscal framework.
However, the Committee has also been cautioned about a likely slowdown in revenue growth in 2026, given the anticipated drop in vehicle imports, an income stream that significantly contributed to this year’s outperformance. The report will soon be formally presented to Parliament.
Following the internal review, CoPF also held discussions with civil society representatives, who shared observations and concerns regarding the 2026 Appropriation Bill. Their feedback covered issues including: Transparency of Budget allocations, equity in distribution of funds across sectors, identified weaknesses in the current fiscal framework and proposals for more accountable public spending.
Chairman Dr. de Silva assured that the views and proposals presented by civil society organisations will be forwarded to the Finance Ministry for appropriate action.
