Sri Lanka President outlines procurement reforms to speed up capital spending
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President Anura Kumara Dissanayake, also Finance Minister, announced reforms to public procurement and budget-timeline alignment to accelerate capital investment spending, saying current rules have become a barrier and paralyze execution.
He spoke at the launch of the Sri Lanka Economic and Investment Summit 2026 on Monday (12), noting the upcoming budget plans public capital expenditure of around Rs. 2,000 billion, a massive increase from when his administration took office. He said his government utilized 76 percent of allocated capital expenditure last year, though critics noted this included some past loan repayments for the central highway project.
Government sources told EconomyNext that less than 30 percent, or about Rs. 385 billion, of this year's Rs. 1,380 billion capital budget was spent in the first nine months. Analysts attribute chronic underspending to structural inefficiencies in public financial management and project execution.
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How the story developed
- සිPresident Dissanayake proposed a digital transformation authority, an AI center, and student broadband internet vouchers.
- සිPresident Dissanayake allocated 200 million rupees for a Katunayake Airport flyover to support re-exportation centers.
- தHarsha de Silva criticized the budget for lacking structural change and maintaining previous expenditure levels.
- සිOpposition Leader Sajith Premadasa accused the government of concealing economic data and manipulating budget figures.
