Budget 2026 focuses on growth, development and advancing SMEs
The Budget 2026 presented in Parliament by President Anura Kumara Dissanayake on Friday revealed a range of allocations and reforms aimed at ensuring economic stability, boosting healthcare, promoting digital transformation, and improving social welfare with critical concentration on the digital economic development.
The President in Parliament.
The proposals indicate a focus on reform and inclusivity — emphasising investments in health services, digital infrastructure, education, and assistance for vulnerable populations. Notable announcements feature funding for medical faculties, AI Service Centres, primary healthcare centers, and SME loan initiatives, along with firm commitments to digital governance, sustainable development, and fiscal consolidation.
Sri Lanka’s Digital ID will be rolled out in March 2026, the President said. A digital payment system will be implemented for all government payments, he said noting that in a bid to encourage online payments, and those paying digitally won’t be subject to any service fees. Also to encourage cashless transactions, all government payments will be transferred to digital platforms. The government plans to introduce an e-procurement system soon.
“This year’s budget concentrates a lot on digital economy and infrastructure development. Companies whose annual turnover is above Rs. 36 million are liable for value added tax which will impact all firms,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC said. Construction related counters will be impacted positively, he added.
The budget also unveiled the new plantation daily wage of Rs. 1,750 from Rs. 1,350 earlier, effective from January 2026. This includes a contribution from the government of Rs.200 and Rs.200 from plantation companies. A stock market analyst said that plantations will suffer with the wage hike but added: “With inflation maintained below 5 per cent and low interest all sectors will grow”.
Joint Apparel Association Forum (JAAF) Spokesman Yohan Lawrence said the budget has turned out to be positive for the apparel industry. The government has also focused on the SME sector which is a good thing. Capital allowance reduction was something that industries requested. Digitalisation of state enterprises and upgrading of RAMIS along with e-invoicing has made the budget favourable to businesses.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!