Govt. signals stronger capital market push in 2027 Budget

Daily FT and Newswire report that Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando described a stronger emphasis on capital markets in the Government’s 2027 Budget. Daily FT says he acknowledged that actions taken during the previous two years had attracted little notice, prompting some to think the Government had done little. Newswire reports that Fernando framed the next economic phase as a shift from stabilisation toward broader economic change, supported by investment and capital market growth.

Newswire reports that Fernando spoke during a meeting for institutional investors in 2026, convened by the Securities and Exchange Commission of Sri Lanka (SEC) together with the Colombo Stock Exchange (CSE). The 2027 Budget is due to be presented on November 12, according to Newswire.

Newswire reports that the Finance Ministry examined 12 capital market proposals from the SEC and reached agreement on most, with several likely to appear in the Budget. It says the Government expects to provide Rs. 2 trillion for capital expenditure, directing funds toward roads, railways, links to rural areas, logistics, transport facilities and selected social development schemes. Newswire reports that Fernando identified administrative delays and shortages of resources as obstacles to delivering projects.

Newswire reports that government revenue had risen above 16% of GDP by the close of 2025, compared with an initial 15.4% goal for 2030. Fernando said tax-structure changes might be weighed once revenue objectives were achieved; he warned that lowering corporate or personal income tax too soon could reduce receipts, while future cuts to indirect taxes remained an option, according to Newswire.

Newswire also reports that the Government intends to introduce legislation to reorganise state-owned enterprises and that Fernando said Sri Lanka has 527 institutions designated as state-owned.