President Anura Kumara Dissanayake said on Friday that the government will cut certain taxes again in the 2027 Budget, and that the reductions will be designed so they do not put state revenue targets at risk.
“We have not imposed any new taxes since coming to power. In fact, we have significantly reduced some existing taxes. We will reduce certain taxes further in the upcoming Budget,” the President said.
He did not identify which taxes would be cut, or by how much.
Speaking on the country’s economic performance, the President said the government had met its revenue targets without introducing any new taxes since taking office. He contrasted that with previous administrations, which he said had frequently fallen short of their projections, collecting only around 90% of the amounts they had budgeted for.
The current government had exceeded its revenue expectations while holding a primary budget surplus, he said. Maintaining that surplus — the balance before interest payments — is essential to bringing down the debt burden over time and to strengthening economic stability, he added.
The President also acknowledged the pressure households are under, saying rising prices for goods and services had added to family costs and that relief had to be delivered without abandoning fiscal discipline. Colombo inflation reached 8.3% in October, a fourth consecutive month above the Central Bank’s target ceiling and a more than three-year high.
Hiru News reported that the President made the remarks while attending the national convention of a national intellectuals’ organisation. The Daily Mirror report did not name the venue.
The 2027 Budget Speech is scheduled for November 12, taking the form of the second reading of the Appropriation Bill. It will be the government’s third annual budget since taking office.
The announcement follows the President’s statement earlier this month that the government aims to cut VAT rates within two to three years as part of a wider relief effort.
Not reported: Neither filing specifies which taxes are under consideration, the revenue cost of the reductions, or the primary surplus figure the government is currently running.