President Announces Rs. 2 Trillion Capital Expenditure Target for 2027

President Anura Kumara Dissanayake has outlined plans to allocate Rs. 2 trillion for capital expenditure in 2027, representing a 40% increase, as part of a strategy to reduce recurrent spending and boost development investment. He emphasized the need for effective use of public funds to avoid burdening future generations with debt, while also highlighting progress in economic stability and anti-corruption efforts.

Speaking at the Galle District Special Coordination Committee Meeting on March 28 at the Galle District Secretariat, President Anura Kumara Dissanayake called for a reduction in government recurrent expenditure and a greater focus on development investment, stating that public resources should drive the country’s progress rather than sustain government operations.

The President noted that the government's economic plans for the upcoming year aim to lower recurrent expenditure from its current 9% of GDP and raise capital expenditure from 4% to support larger development investments.

According to a statement from the President’s Media Division, the government intends to allocate Rs. 2 trillion for capital expenditure in 2027, an increase of roughly 40%, with every rupee from the Treasury to be used effectively for national development to create a financially disciplined nation free from future debt burdens.

Dissanayake highlighted Sri Lanka’s positive progress in international assessments of economic performance and social indicators, including recognition for improvements in economic stability and the reduction of corruption.

The upcoming Budget will prioritize enhancing public sector efficiency through digitalization, enabling citizens to access government services remotely, the President said, adding that the government is also considering extending the retirement age in certain sectors to retain experienced professionals.

During the meeting, progress on the Galle District Development Plan and projects under the 2026 Budget was reviewed, along with the district’s financial requirements for 2027. Discussions covered rural road development, poverty reduction, housing programs, sports development, water supply, waste management, and the Galle City Development Plan.

Officials reported that 122 rural road projects had been approved with an allocation of Rs. 250 million, of which 57 projects are already completed. The 'Ratama Ekata' national anti-drug program was also reviewed, with 12,608 raids conducted in Galle District since its launch, leading to the seizure of 119.6 kilograms of illicit drugs.

The President instructed relevant institutions to work together under a coordinated approach to address development challenges and implement projects according to a unified national plan. The meeting was attended by government ministers, Members of Parliament, provincial and local government representatives, senior officials, and heads of security institutions.