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Most pleased with ‘people’s budget’, watching for policy outcomes
View(s):By Ishu Bandara
As the budget proposals for 2026 are being absorbed by Sri Lankans before their implementation, reactions have been flowing in with expectations and concerns. Among the concerns is the transparency of the proposals, as revenue measures are not clear, though most expenses have been detailed.
Nalin Liyanage, who worked for 20 years in the vehicle repair trade before retiring, said understanding how the budget would work out is difficult.
Many expressed hope that the budget will provide general relief to ordinary people. Pix by Priyanka Samaraweera
“This budget doesn’t have the transparency we saw in earlier years. Not only this government, but many governments over the past years have presented budgets without clarity, unlike during the time of Ronnie de Mel, who served as finance minister. He was the only person I have seen presenting a budget in a detailed and comprehensive manner, clearly outlining how income was generated and how expenditure was managed. It was transparent and easy for the public to understand. In those days, the budget speech went on for many hours, but now it lasts only three or four hours. The present budget, as I see it, lacks transparency and is difficult to understand,” Mr Liyanage told the Sunday Times.
He also criticised the government for relying on loans instead of generating revenue and insisted that income generation is important. Increasing public sector salaries or offering higher pensions without detailing the sources of income is insufficient and not the correct approach.
Mr Liyanage said he expected greater focus on the agriculture sector, but this was not reflected in the budget. He added that if the government could improve farmer incomes, it would help the country build a stronger reputation.
The budget focuses on fiscal priorities, tax reforms, and strategic policy directions for 2026. The government’s key strategic objective is achieving sustained economic growth of 7% over the next few years.
Thimesh Liyanage, who works in a private finance company, told : “The concept behind the budget is commendable, but it is difficult to judge its quality until it is actually implemented. Previous budgets included proposals that were never carried out. We hope this budget will be implemented in a way that allows people of all classes to live comfortably.”
Speaking about education-related proposals, he said, “It is good that the government has decided to increase the Mahapola allowance, but the budget should also include important provisions for development that address the basic needs of the people in Sri Lanka.
“We have doubts about how practical the proposals related to vehicles really are. The government should focus on whether ordinary people, who already live under so much pressure and rely on buses or vans, will be able to maintain their living standards or improve them.’’
Nandana Dissanayake, a businessman at the Narahenpita Economic Centre, praised the proposals.
“As a whole, I think it is a good budget,” he said. “We hope it will provide general relief to ordinary people. We also saw that the plantation community received a good salary increase, and we believe the country’s situation will improve in a few more years.”
Mr Dissanayake said that those who work hard, like himself, are not overly worried about the budget. They pay their taxes regularly, and, although the purchasing power has not increased significantly, the government appears optimistic about the future. He also noted satisfaction with the business concessions.
The Chairman of the Narahenpita Traders Union, K. Piyasena, who has been doing business for 16 years at the Economic Centre, said that compared with previous budgets, this one is generally good.
“This government was chosen by the people because previous governments failed. So we have confidence that this government will serve the people better, and good things will happen in the future. This is a people’s budget,” Mr Piyasena said.
“We can see that some organised groups are trying to sabotage the good work the government is doing. But I have the opportunity to speak to many people who come to the Economic Centre, and most of them talk very optimistically. Only a few focus on the faults and shortcomings.”
Mr Piyasena acknowledged that problems and issues do exist but urged citizens to understand the situation and give the government more time, as solutions cannot be achieved in just two or three months. He also noted that the government is taking action against white-collar criminals and working to suppress crime.
A retired government worker, Mallika Herath, expressed deep satisfaction and strong hope that this government will bring good fortune to the country.
“We are very happy about this government. From this budget, we can clearly see that the government has tried to provide benefits to all communities. It gives justice to all sectors,” she said.
She highlighted the significant salary increase proposed for government employees and noted that pensioners like herself are now very satisfied with pension benefits and gratuity. She hopes the current policies will continue.
Another pensioner, Milinda Hettiarachchi, said, “The budget should focus on agriculture. Without giving priority to agriculture, the country cannot develop. When we compare Sri Lanka with India, we see that farmers there receive free oil and fertiliser, but we do not see such allocations in Sri Lanka’s budget. Any government should give its primary attention to the agricultural sector; otherwise, Sri Lanka will continue to remain a debtor nation.”
He said farmers face greater hardships than government workers and suggested the highest priority for agriculture.
“The country will never progress, and people will always end up eating imported goods. Sri Lankans are forced to buy rice at Rs 240 to Rs 250 per kilo when there is sufficient land for paddy cultivation.’’
Nimal Jayasiri, a regiment sergeant major, said, “We have no issues with the budget. We believe the country is currently in good condition, and within the forces there is a positive impression of the government. We believe that with this budget, the country can achieve significant change and major development under the present government.’’
A student of the management faculty at Wayamba University, Vimukthi Samarakoon, said, “We are happy that the Mahapola and bursary have been increased by Rs. 2,500. However, the total allocation for the higher education sector is lower compared to previous years.
“This surprised us and raised doubts, as it seems the government is not giving sufficient attention to developing the higher education sector. We are also unsure about where the reduced allocation will go, whether it will be directed to university management or other development projects.’’
Many of those interviewed suggested patience with the one-year-old government. The tangible impact of policies on the economy would be known long-term, they say.
The lowering of the Value Added Tax threshold from Rs 60 million to Rs 36 million and how this would affect consumers through retailers are raising concerns.
Small businesses with an average daily turnover of Rs 100,000 must register to pay VAT and will likely pass on the cost to consumers.
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