Business
No populist budget expected, says analyst
Recent data from the Central Bank of Sri Lanka (CBSL) shows the government’s strenuous yet successful efforts towards fiscal consolidation following the 2022 economic crisis.
The figures confirm a significant turnaround in public finances, driven by robust revenue performance and targeted expenditure control under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) programme.
This revenue-based consolidation has been critical in restoring macroeconomic stability. However, a major challenge persists according to the data: the colossal burden of interest payments on the national debt.
Commenting on these trends, an economic analyst told The Island Financial Review that policy changes since mid-2022 are yielding substantial results after years of declining tax collection.
“The government’s revenue-to-GDP ratio has recovered strongly from its low point, demonstrating the efficacy of recent tax reforms,” he said. “This was achieved by enhancing the efficiency of tax administration and implementing rate adjustments, particularly with the revised Value Added Tax (VAT). This shift has bolstered the government’s ability to finance its operations and service its debt independently.”
Elaborating further, he noted mixed dynamics on the expenditure front. “While Non-Interest Expenditure as a share of GDP has been managed, signalling prudence in controlling operational spending, the overall expenditure profile remains dominated by the high cost of debt.”
“The core challenge is interest expenditure. Even as revenue grows, a disproportionately large share is immediately consumed by interest payments on the massive outstanding domestic and foreign debt,” he explained.
He pointed out that these high payments severely constrain the government’s capacity for vital capital investment and social welfare spending, effectively reducing the fiscal space available for economic stimulus.
“The sheer size of the debt means that interest payments will remain a major feature of the government’s fiscal dynamics for the foreseeable future, demanding continued fiscal discipline,” the analyst said.
He highlighted the attainment of a positive primary balance as the most significant achievement, marking a definitive turning point that validates the difficult fiscal measures undertaken in 2022-2023.
He concluded with a note of caution, stating that any policy reversal – particularly in tax revenue collection or expenditure control – could quickly undermine the progress made and push fiscal balances back into unsustainable territory.
“For Sri Lanka to fully exit the crisis, the government must continue to deepen tax administration reforms, maintain non-interest expenditure efficiency, and successfully execute its comprehensive debt restructuring programme. The fiscal sector’s performance is the cornerstone of the nation’s fragile recovery. In this context, the chances are remote that the upcoming Budget could be an ordinary people-friendly populist one.”
Presentation of Budget proposals for the year 2026 will be held on 7th November, 2025, followed by the budget debate from 8th November to 5th December, as decided by the Committee on Parliamentary Business.
By Sanath Nanayakkare
Business
Mattala Wildlife Unit to boost revenue, tourism and investor confidence
The launch of a dedicated wildlife unit at Mattala Rajapaksa International Airport is expected to deliver significant economic benefits by improving aviation safety, strengthening eco-tourism and enhancing Sri Lanka’s investment appeal, Wildlife Conservation Department Director General Ranjan Marasinghe said.
Speaking at the signing of a Memorandum of Understanding between the Department of Wildlife Conservation and Airport and Aviation Services (Sri Lanka) Limited, Marasinghe said the initiative links conservation directly with national development and revenue generation.
“This is more than an administrative step—it is a forward-looking initiative that aligns conservation, aviation safety and national development in a single strategic effort,” he said.
He noted that wildlife management at airports is globally recognised as essential for reducing bird strikes and wildlife-related disruptions, which can lead to costly repairs, delays and operational losses.
By proactively managing such risks, the Mattala Wildlife Unit is expected to lower potential costs for airlines and airport operators while improving efficiency and confidence among carriers considering future operations.
Marasinghe said the airport’s proximity to premier tourism destinations such as Yala National Park and Udawalawe National Park, together with marine tourism opportunities including Blue Whale watching, gives Mattala a strong commercial advantage.
“This convergence of aviation and wildlife tourism creates an extraordinary opportunity,” he said, adding that the airport has the potential to become a major gateway for high-value eco-tourism.
Industry observers note that wildlife tourists generally spend more on guided safaris, hotels, transport and local experiences, generating stronger foreign exchange earnings and employment opportunities for surrounding communities.
Marasinghe said integrating environmental standards into airport operations would also improve Sri Lanka’s global image at a time when investors and international travellers increasingly value sustainability.
“By integrating environmental considerations into airport operations, we position Sri Lanka more favourably on the global stage, demonstrating that we are a nation committed to sustainability, responsibility and innovation,” he said.
He expressed hope that the Mattala model would be replicated at other international airports, creating long-term savings, stronger environmental governance and wider economic returns.
The Director General said the Department of Wildlife Conservation remains committed to supporting the national economy through new and meaningful avenues while protecting Sri Lanka’s natural assets.
“Conservation must also contribute to development,” he said, stressing that protecting biodiversity and generating growth can go hand in hand.
By Ifham Nizam
Business
Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry
Aitken Spence Elevators, in collaboration with CINEC Campus, recently held the Certificate Awarding Ceremony for the latest batch of trainees of the Elevator Serviceman Course at the Elevator Training Centre (ETC). The graduates were awarded their NVQ Level 3 certifications, marking a significant milestone in their professional journey within Sri Lanka’s vertical transportation industry.
The certification programme was developed in partnership with the National Apprentice and Industrial Training Authority (NAITA) and the Ministry of Vocational Training & Skills Development, ensuring trainees received industry-recognised qualifications, alongside strong practical competencies. The ceremony was attended by directors of both Aitken Spence and CINEC Campus, as well as staff members, lecturers, and invited guests of the graduating students
Anuka Prashan Pieris was recognised as the Most Outstanding Student of the batch in appreciation of his exceptional performance and commitment throughout the programme. The Elevator Training Centre plays a vital role in addressing the growing demand for skilled elevator service technicians through structured training and hands-on learning. The facility features Sri Lanka’s first Elevator Training Tower, offering trainees practical exposure aligned with both local and international standards.
All graduates of the current batch have already commenced their careers as technicians and supervisors at Aitken Spence Elevators. Their seamless transition into the workforce reflects the programme’s strong emphasis on developing job-ready professionals capable of contributing effectively from day one.
Business
Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026
COLOMBO, SRI LANKA– Sterling Steels (Pvt) Ltd, a premier manufacturer of high-quality globally renowned steel roofing & cladding, announced it has been honored with a prestigious Merit Award at the Sri Lanka Institute of Architects (SLIA) Annual Product Awards 2026. The national recognition was awarded in the highly competitive Zinc-Aluminium Coated Profile Steel Sheet category, underscoring the company’s dedication to excellence, innovation, and superior quality in the Sri Lankan construction industry.
The award was presented during a grand ceremony held at the esteemed Nelum Pokuna Theatre, a key event in the nation’s architectural and construction calendar. The SLIA Annual Product Awards are widely regarded as a benchmark for quality and design excellence, with products rigorously evaluated by a panel of distinguished architects and industry experts. Receiving this Merit Award positions Sterling Steels among the top-tier suppliers of building materials in the country.
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