AKD unveils Rs. 4.99 trillion ‘transformation’ budget with PAYE tax relief and record capital push
By Sanath Nanayakkare Delivering his administration’s third national budget – Sri Lanka’s 81st – in Parliament yesterday, President Anura Kumara Dissanayake, in his capacity as Minister of Finance, unveiled a Rs. 4,992.77 billion spending blueprint designed to pivot the economy from post-crisis stabilisation to structural transformation. Addressing mounting public expectations for cost-of-living…
President Anura Kumara Dissanayake presented Sri Lanka's 2027 budget, a Rs. 4.99 trillion plan aimed at transitioning from recovery to sustainable economic growth. The government plans to provide relief from rising living costs with PAYE tax cuts, expanded tax brackets for middle- and upper-income earners, and subsidies to offset energy expenses.
A record Rs. 2 trillion will be allocated to public capital expenditure, maintaining the borrowing ceiling at Rs. 3.8 trillion despite a 12.6 percent increase in total spending. President Dissanayake emphasized that government sacrifices will soon translate into tangible benefits, such as job creation, improved public services, and new opportunities.
Personal income tax relief includes a higher tax-free allowance, a new 12 percent tax bracket, and subsidies for household energy costs. The government also promised record investments in infrastructure and energy security, including the construction of a domestic flight terminal and oil and gas exploration contracts. In a bid to boost exports, the budget allocates funds for trade window establishments, streamlined land allocation procedures, and investor concessions.
Foreign trade agreements are a priority, with the government working on expanding the existing Free Trade Agreement with India and exploring new agreements with China, the UAE, and Oman. Finally, the government plans to reform outdated laws and institutions, instituting new acts for state assets, statistics, licensing, and national accounting.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
