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President AKD unveils reforms to anchor 7% growth target

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President AKD presenting Budget 2026 in parliament.

President Anura Kumara Dissanayake, in a pivotal address presenting the National Budget for 2026 in parliament yesterday, announced reforms to dismantle hurdles for Foreign Direct Investments (FDI), highlighted by a firm commitment to evaluate state land for investor use.

“Sri Lanka’s land parcel will be properly evaluated, and the government will determine which lands could be made available for investors bringing in foreign direct investments as making lands available for FDIs has been an obstacle in bringing foreign direct investments,” President Dissanayake stated, emphasising a renewed focus on the investment climate. He pointed out that foreign investor confidence is currently being strengthened as Sri Lanka progresses on its economic stability and growth trajectory.

In tandem with the land policy, the President confirmed that the process of monitoring, regulation, and management of state assets is underway, alongside the crucial amendment of the Strategic Development Projects Act and the Port City Act. He further announced that the State Asset Management Act will be amended in 2026, and the State Commercial Enterprises Act is being introduced to Parliament, signaling a profound structural overhaul of state sector governance. The foundational Investment Protection Act will also be passed in the first half of 2026.

The President underscored the government’s success in achieving state fiscal stability, noting that the country is currently moving towards anchoring an economic growth of 7% in the medium term. Key economic indicators have demonstrated resilience, with the government taking maximum measures to maintain inflation below the 5% level, and the exchange rate being kept at a stable level despite global shocks.

He projected the fiscal strength to hit a historical high, with the highest primary surplus in history set to be marked next year. State revenue, which increased by 900 billion rupees compared to last year, is expected to drive the revenue-to-GDP ratio to 16% in 2025, with a long-term goal of bringing state revenue to the 20% level of Gross Domestic Product (GDP). The government also plans to increase state investments by 4%, stressing the need for capital expenditure to be increased while systematically reducing recurrent expenditure.

On the debt front, the President stated that the country’s debt percentage is already approaching the 95% target, and the government expects to reduce the overall state debt to 87% by the year 2030. Foreign creditors have agreed to provide relief based on the progress of debt restructuring. Out of a total debt servicing requirement of USD 2,435 million, USD 1,941 million has been settled, though foreign debt servicing is up by $760 million this year compared to last year. The national carrier, SriLankan Airlines, is also slated for comprehensive restructuring, with its debt – now around USD 210 million) – to be restructured by the end of this year.

The budget allocates substantial funds and policy initiatives to spur investment and trade as follows:

The country received $823 million in Foreign Direct Investment (FDI) in 2025.

An additional 1,000 million rupees is allocated for services related to Investment Zones.

A residential visa scheme is being introduced for foreign investors.

Rs. 2,500 million is allocated for investment facilitation, including the National Single Trade Window.

To boost competitiveness, an extra 250 million rupees is allocated for the National Export Development Plan, which aims to connect with global value chains and keep export income exceeding $2 billion per month.

Investment incentives include a five-year tax holiday for investors installing communication towers, Rs. 750 million allocated to encourage startups and innovation, and Rs. 21 billion for Research and Development.

The government has noted that the stock market experienced historical growth in 2025, while unemployment reduced to 3.8% in the first quarter of 2025.

The budget detailed key infrastructure projects to support future growth and social welfare measures.

Rs 1 billion is allocated to redevelop domestic airports in Trincomalee, Jaffna, Sigiriya, and Hingurakgoda, and work on the stalled Katunayake International Airport expansion will commence next year.

The government will establish two new IT parks in Digana and Nuwara Eliya under a PPP scheme, while Rs 1.5 billion is allocated to two state banks to settle contractor dues for the idling IT parks in Galle and Kurunegala.

For tourism, Rs 3 billion is allocated to develop domestic tourism hotspots and fund an international destination campaign, targeting USD 8 billion in revenue and 4 million tourist arrivals by 2030.

On the social front, Public sector employee salaries are being increased in 3 phases already. Social safety net expenditure will be maintained at a minimum of 4%, supported by a programme underway to eliminate rural poverty and ensure the benefits of development reach everyone. The President also announced that the government would provide broadband vouchers to children of Aswesuma beneficiary families.

The President concluded by reaffirming an assurance that the public’s tax revenue is being managed with accountability, moving toward an economic system based on equity instead of privilege.

by Sanath Nanayakkare



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Mattala Wildlife Unit to boost revenue, tourism and investor confidence

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Dignitaries at the MOU signing ceremony.

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

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Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry

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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.

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Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026

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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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