Sri Lanka to boost capital expenditure by 40% with R. 2 trillion allocation in 2027

President Anura Kumara Dissanayake has announced a substantial allocation of Rs. 2 trillion for capital expenditure in 2027, marking an increase of roughly 40 per cent to accelerate state-led economic development.

Speaking at the Galle District Special Coordination Committee Meeting at the Galle District Secretariat on Tuesday (28), the Head of State outlined a major fiscal realignment aimed at curtailing recurrent operational costs while channelling greater resources into long-term national growth.

The government intends to recalibrate public spending by trimming recurrent expenditure from its present level of 9 per cent and raising capital expenditure from 4 per cent.

To enhance administrative performance and reduce overall operational overheads, the upcoming Budget will focus heavily on digitalising public services so citizens can access government facilities remotely.

The administration is also evaluating proposals to raise the retirement age across designated sectors in order to preserve skilled talent within the civil service.

Further details presented during the meeting revealed significant progress in regional infrastructure, including the approval of 122 rural road initiatives backed by Rs. 250 million, with 57 projects already fully delivered.

Authorities reported that the ongoing national anti-drug campaign titled 'Ratama Ekata' had yielded 12,608 raids and the seizure of nearly 120 kilograms of illicit narcotics within the Galle District.

Meanwhile, discussions addressed poverty alleviation, urban housing, sports facilities, municipal waste management, water supply schemes, and the wider Galle City Development Plan.

The President observed that recent international evaluations reflected encouraging advancements in Sri Lanka’s economic stability, social indicators, and anti-corruption efforts.

He insisted that every Treasury rupee must be deployed with strict financial discipline to prevent future generations from inheriting unsustainable debt burdens, while directing state bodies to align regional operations under a singular national development strategy.