President makes push for efficient capital spending to drive growth

Tuesday, 6 January 2026 02:52 - - {{hitsCtrl.values.hits}}

Instructs Ministry Secretaries to ensure optimal utilisation of 2026 Budget allocations
Hints at expenditure remaining within 13% of GDP limit, with 4% allocated for capital expenditure
Notes Rs. 1.4 t allocated in 2026 Budget for capital spending, in addition to Rs. 500 b supplementary allocation for Ditwah relief

President Anura Kumara Dissanayake

President Anura Kumara Dissanayake yesterday said, within the prevailing financial constraints, Budgetary allocations for 2026 have been made by identifying national priorities, and emphasised that it is the responsibility of all Ministry Secretaries and public officials to utilise these funds with maximum efficiency for the benefit of the people.

Dissanayake made these remarks during a discussion with Ministry Secretaries held yesterday at the Presidential Secretariat, the President’s Media Division (PMD) said.

The President said that despite substantial allocations for capital expenditure, many development opportunities were lost to the people due to the inability of past administrations to utilise these funds efficiently and achieve the intended physical progress.

He further noted that, in some instances, Budget preparations were influenced by the notion of “unspent funds,” which hindered proper utilisation. The President emphasised that, for 2026, the necessary groundwork has been established to ensure that all required funds are made available and utilised fully without delay.

During the discussion, the President further explained that, under the Extended Fund Facility (EFF) with the International Monetary Fund (IMF), the Government can allocate only about 13% of GDP for expenditure, of which at least 4% should be reserved for capital expenditure. The President noted that the funds allocated to each Ministry was based on the principle of “emphasis on national priorities.”

The Government is the country’s largest investor, and Rs. 1. 4 trillion has been allocated for capital expenditure, with an additional Rs. 500 billion set aside for reconstruction work to repair damage caused by the recent Cyclone Ditwah.

President Dissanayake stressed that the primary responsibility of Ministry Secretaries is to manage the allocated funds efficiently to achieve the expected physical infrastructure development, and that failure to implement proposed projects would deprive the people of the benefits they are entitled to.

During the discussion, the allocation and planned utilisation of projects and funds by each Ministry for the year 2026 were presented in detail, the PMD said.