OPA urges focused reforms in Budget 2026 to drive stability, growth and equity

OPA President Sujeewa Lal Dahanayake (right) presenting the OPA’s Budget 2026 proposals to Treasury Secretary Dr. Harshana Suriyapperuma in the presence of OPA officials

• Calls for National Investment Facilitation Authority and Digital Land Bank to attract FDI
• Proposes National Green Energy Fund and Govt.-backed Green Bonds to accelerate renewable transition
• Seeks SME Export Fund, tax holidays and concessional loans to boost small exporters
• Urges unified tourism branding and infrastructure fund to promote high-value, experiential travel

The Organisation of Professional Associations (OPA) has submitted a comprehensive set of proposals for the 2026 National Budget, outlining measures to strengthen fiscal stability, revive growth, and ensure equitable development. The recommendations, representing the views of 52 professional bodies and over 60,000 members, were presented to Treasury Secretary Dr. Harshana Suriyapperuma following consultations with a multidisciplinary committee appointed by the OPA.

The OPA proposal document is as follows:

Background

President Anura Kumara Disanayake, presenting the maiden Budget of the National People’s Power (NPP) Government last February, stated: “A Budget is not just a set of revenue and expenditure proposals for the upcoming year, it is also a reflection of the Government’s approach to building the economy and overall policy.” 

Taking a cue from this perspective, the OPA appointed a Committee of its members with multidisciplinary expertise. 

The proposals formulated by the Committee were presented to Treasury Secretary Dr. Harshana Suriyapperuma on 12 September. The OPA delegation had a cordial, constructive consultation with the Secretary. These proposals reflect viewpoints of 52 professional associations, 34 disciplines, and over 60,000 professionals of the OPA.

Objective

The Budget proposals were formulated with the aim of reaching the following Government priorities. 

• Stability – meeting International Monetary Fund (IMF) and fiscal targets.
• Growth – revive stalled mega projects, enhance exports, enhance employment opportunities, and increase national productivity.
• Equity – integrate people as participants and beneficiaries of the growth process while protecting vulnerable groups, reducing rural-urban disparities, and ensuring inclusive access to health, education, and nutrition. 

Proposals

Foreign Direct Investment promotion

• Establish a National Investment Facilitation Authority (NIFA) as a one-stop shop to fast-track the approval process within 60 days.
• Establish a Digital National Land Bank (GIS-based) to identify lands for industry, tourism, agribusiness, and energy.
• Launch “Invest Sri Lanka 2030” campaign targeting renewable energy, manufacturing, technology, export promotion, tourism infrastructure, and agribusiness.
• Enhance investor aftercare services with a dedicated Investor Relations Cell and annual CEO Roundtables.

Divestment of vested and unutilised assets

Establish a high-powered national enterprise within the Finance Ministry to divest, vest, acquire, and/or unutilised public property; divest assets of defunct financial institutions and distribute proceeds to cover statutory payments due and to settle depositor invested funds.

Tourism development

• Develop a 10-year unified branding strategy positioning Sri Lanka as a high-value, must-visit, experiential destination with a targeted marketing plan and a campaign.
• Establish a Special Tourism Infrastructure Fund for connectivity, premium visitor facilities, sustainability development, and luxury tourism infrastructure.
• Implement a Tourism Skills Accelerator Program and a National Tourism Quality Standards Certification.
• Shift policy focus from arrivals to yield: set spending-per-tourist targets and promote wellness, Meetings, Incentives, Conferences and Exhibitions (MICE), yachting, and cultural tourism.
• Convert underutilised Government buildings for tourism accommodation and recreation using Public Private Partnership (PPP) models.
• Expand the tourism value chain to trickle down benefits to rural communities.
• Develop wellness tourism and community-based tourism programs.

Agriculture

• Develop an e-database of underutilised land with potential for agriculture.
• Consolidate small agricultural plots through the concept of cooperative/collective farming.
• Develop economic centres with cold storage facilities.
• Expedite the process of mechanisation to overcome the labour issue.
• Provide incentives to encourage universities and research institutes for pragmatic research on value additions in agriculture and livestock development.
• Revisit Free Trade Agreements (FTAs) with emphasis on seeking additional quotas for agricultural products. 

Health

• Promotion of primary preventive healthcare system and wellness programs jointly with Western medical facilities and indigenous Ayurveda-based drugs, therapies, immunity, and patient care. 
• Establish an educational training and research hub for pharmaceutical manufacturing and quality testing of medicine. 
• Exempt local pharmaceutical manufacturers from payment of VAT or provide a rebate on VAT payment.

Export-based Small and Medium Enterprises (SMEs)

• Create an SME Export Development Fund to provide concessional loans.
• Grant a five-year tax holiday for new SME exporters.
• Subsidise costs of international certifications and at State labs i.e, ITI.
• Build a national export information platform and SME Export Portal.
• Support logistics with railway-based cargo services and SME export hubs.
• Strengthen training facilities for SME Exporters to enhance capacity and market access.

Entrepreneur training

Introduce practical entrepreneur training facilities at Government skills development centres such as the Vocational Training Authority (VTA), to familiarise with banking practices, bankable project preparation, and market potential before embarking on a business venture.

SME for migrant employment returnees

Returnees after serving a period of more than two years as migrant employees to be provided concessionary loan facilities to cover up to 50% of the investment required for an SME project.

Prevention of road accidents

The financial and human cost and loss caused by road accidents is immense and on the increase. At present, errant drivers are punished and imposed with penalties. The OPA proposed the introduction of a reward scheme for the topmost police divisions that control traffic offenses to a lesser number, resulting in fewer accidents. The rewards will be considered on a monthly, quarterly, biannual, and annual basis. 

Suitable criteria to ensure the commitment required from each Police division are based on the number of registered vehicles within a district. Insurance companies can share the cost and partner in this scheme, as they will be a beneficiary of a lesser number of road accidents.

“Prajashakthi Program”: Integration with national economy

Establish links between the Prajashakthi Program and the national economy to create employment and income generation opportunities in the periphery. This can be achieved by bringing local authorities, Samurdhi Banks, and industries located in the periphery i.e, garment factories, into the program as they are connected to the national economy.

Revival of rural industry

There are many traditional, local, and cottage industries in rural areas. They face issues in accessing information, raw materials, markets, financial assistance, technology, design, etc. They are location-specific. The OPA proposed that the Industries Ministry, with organisations under its purview, draw up a program together with Prajashakthi Program to identify issues and build up linkages and access required by these industries.

Integrated extension service

There are extension arms under many Government agencies. They are scattered, fragmented, and working in isolation. An extension officer in each agency visits rural areas with a package relevant to his or her organisation. People need a single integrated set of recommendations. The OPA proposed to bring all extension arms of different agencies under a single umbrella and establish an integrated extension service.

Green energy transition

Heavy reliance on fossil fuels undermines energy security and climate goals. Renewable energy investments face approval delays, financial barriers, and a lack of incentives, despite strong solar, wind, and hydro potential.

Establish a National Green Energy Fund with blended finance

• Provide feed-in tariff guarantees and fast-track approvals for renewable projects.
• Issue Government-backed Green Bonds to finance renewable infrastructure.
• Promote rooftop solar through subsidies and concessional loans for SMEs and households.
• Link green energy adoption with industrial parks and launch a Green Skills Accelerator.
• Secure green energy-based funding to assist in the installation of storage batteries.
• Ensure getting carbon credits for renewable energy. 

Way forward

The OPA did not make proposals related to the sectors of education and digitalisation as the Government is progressing with comprehensive programs, at present. 

Success in implementation of the proposals necessitates: Prioritisation through a phased roadmap, governance safeguards and independent audits, comprehensive equity-focused, and the efficient delivery by the public sector.

The absence of the aforesaid matters being addressed poses a risk of perpetuating a cycle of under-delivery and over-ambition. Further, stringent execution capabilities, transparent safeguards, and a thorough evaluation of incentives relative to revenue requirements must be in place.