Sri Lanka’s 2027 Budget will give greater prominence to capital market development as the Government seeks to turn economic stabilisation into stronger investment and growth, Finance and Planning Deputy Minister Dr Anil Jayantha Fernando said.
Addressing the Institutional Investor Forum, “From Resilience to Sustainable Growth – Industry Forum 2026”, on 27 October, Fernando said the Finance Ministry had accepted most of the Securities and Exchange Commission’s twelve development proposals.
The forum was organised jointly by the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange. The Budget is scheduled for presentation on 12 November 2026.
Some proposals will feature in the Budget, while others will undergo further discussions with market institutions before implementation. Fernando said domestic savings could provide an investment pool, helping direct funds towards productive economic activity.
He outlined plans for Rs. 2 trillion in capital expenditure, covering transport infrastructure, rural connectivity, logistics and social spending. However, administrative constraints remained an obstacle to faster disbursement.
Tax reform would depend on securing sufficient revenue. Fernando acknowledged concerns over corporate and personal income taxes, while indicating that indirect taxation could eventually be reduced once revenue requirements were met.
He also outlined plans to restructure State enterprises through diversification, mergers and a proposed law allowing greater commercial autonomy. The Government intended to withdraw from ordinary trading and hotel operations while retaining selected strategic utilities.
Protecting investors was another priority. Fernando said market manipulation and unequal access to information had weakened public confidence, discouraging savers from entering equities.
Regulators and industry stakeholders were working towards fairer market conditions, with the Government expecting further capital market development and increased foreign investment next year.
Central Bank Governor Dr Nandalal Weerasinghe, SEC Chairman Senior Professor D.B.P.H. Dissabandara and CSE Chairman Dimuthu Abeyesekera also addressed the forum and participated in a panel discussion.
