President Dissanayake Unveils 2027 Budget to Transform Sri Lankan Economy
President Anura Kumara Dissanayake presented the 2027 budget to Parliament, introducing income tax cuts and import levy revisions to drive economic transformation and relief.
President and Finance Minister Anura Kumara Dissanayake presented Sri Lanka's 2027 budget to Parliament on November 12, 2026. The proposal aims to transition the nation from economic stability toward a broader transformation, focusing on increasing industrial output, exports, and investment as the country nears the end of a $3 billion International Monetary Fund bailout.
The budget outlines a spending plan of Rs. 7,673 billion against projected revenues and grants of Rs. 6,180 billion, resulting in a budget deficit of 3.8% of GDP. This deficit rises to 4.5% when including a Rs. 260 billion supplementary estimate for reconstruction following Cyclone Ditwah. Interest payments remain the primary expenditure, consuming approximately 43% of collected revenue. To mitigate future risks, the government allocated Rs. 5 billion for an expected El Niño peak in February 2027.
To provide financial relief to middle-income earners, the government is raising the annual personal income tax relief threshold from Rs. 1.80 million to Rs. 1.95 million, effective April 1, 2027. Additionally, the government announced import levy revisions effective November 13, 2026, including a 25 percent reduction of the CESS levy on roughly 800 goods and the abolition of the Port and Airport Development Levy on solar batteries and newsprint. However, the levy on imported sugar will increase by Rs. 10 per kilogram to support local producers.
Parliament is scheduled to debate the budget from November 13 through December 14, with a final vote expected on the latter date.
