Govt. eyes greater defence personnel labour contribution to construction sector

• Proposal discussed at Defence Ministry’s 2027 pre-Budget meeting

The Government is considering a program to encourage greater labour contribution from defence personnel engaged in the construction sector, as part of discussions on priorities and resource allocation for 2027.

The proposal was discussed at the Defence Ministry’s 2027 pre-Budget meeting chaired by President Anura Kumara Dissanayake at the Presidential Secretariat yesterday, according to the President’s Media Division (PMD).

The PMD did not disclose further details on the proposed program, including its scope, the number of defence personnel expected to participate, the types of construction work envisaged or the budgetary implications.

The construction sector continues to face labour shortages, with the industry reporting a lack of skilled workers, increased competition for experienced tradespeople and higher employment costs. The sector is also grappling with higher procurement costs due to rising prices of imported construction materials and movements in global commodity prices.

The construction-sector proposal was among several areas considered during the meeting, which also focused on rationalising defence-sector research and development, technology adoption, overseas training and the operations of hospitals under the Ministry.

President Dissanayake instructed officials to integrate the research and development centres currently operated separately by the Army, Navy and Air Force into a single national centre, arguing that the arrangement would enable their objectives to be achieved more efficiently.

Discussions also covered the rapid adoption of modern technology and advanced equipment by the defence sector, as well as increased allocations for overseas training to improve the professional skills and knowledge of defence personnel.

Officials reviewed the operations of the General Sir John Kotelawala Defence University Hospital and plans to commence operations at the Neville Fernando Hospital, including the funding required and future plans.

Deputy Minister of Defence Major General Aruna Jayasekara, Secretary to the President Dr. Nandika Sanath Kumanayake, Chief of Presidential Staff Prabath Chandrakeerthi, Defence Ministry Secretary Air Vice Marshal Sampath Thuyacontha and Treasury Secretary Dr. Harshana Sooriyapperuma were among those present, along with the Commanders of the three Armed Forces and other officials.

Defence is among the big ticket items in the Budget.

Among the major allocations in the gazetted 2026 Appropriation Bill, the Defence Ministry was allocated Rs. 455 billion, comprising Rs. 395 billion in recurrent expenditure and Rs.60 billion in capital expenditure. This compared with Rs. 634.8 billion for the Finance, Planning and Economic Development Ministry, Rs. 555 billion for the Health and Mass Media Ministry, and Rs. 301 billion for the Education, Higher Education and Vocational Education Ministry.

Verité Research, in its ‘State of the Budget 2026’, flagged the trajectory of spending on diets and uniforms across the defence sector. It said that although such expenditure is expected to decline by 12.7% in 2026, total spending on diets and uniforms across the sector is projected to have increased by 299% between 2022 and 2026, compared with cumulative inflation of about 80% over the same period.

Verité Research had previously raised concerns over a threefold increase in this expenditure within the Defence Ministry in 2024. While the Ministry’s overall budget remained stable in 2025, it said the provision for diets and uniforms under the Public Security Ministry increased 17-fold.