The government intends to allocate around Rs. 2,000 billion (Rs. 2 trillion) for capital expenditure in 2027, Health and Mass Media Minister Dr. Nalinda Jayatissa said on Saturday, citing improving state revenue and current-year spending capacity. About Rs. 1,350 billion has been approved for capital expenditure in 2026, he added.
Jayatissa was speaking at the launch of 14 ADB-funded carpeted roads in Kalutara on June 13 under the Integrated Road Investment Programme. He used the event to outline the broader fiscal picture behind a wave of public infrastructure announcements landing across the western and southern districts.
He said state revenue rose significantly through 2025 and 2026, with government revenue reaching Rs. 5,500 billion last year. The country also recorded its highest-ever export earnings in 2025, while foreign remittances increased and tourism continued to recover, he said.
The Rs. 2 trillion 2027 commitment was first floated by President Anura Kumara Dissanayake on May 22 in Ampara, where he described it as the largest such allocation in Sri Lanka’s history. Jayatissa’s remarks are the first cabinet-level confirmation of the target from a separate minister, alongside the previously unstated Rs. 1,350 billion current-year baseline.
The IMF Executive Board approved Sri Lanka’s fourth programme review on May 27 with the country’s policy framework described as stronger by mission chief Evan Papageorgiou. The capex push lands as Colombo manages Middle East-driven slowdown concerns flagged by the World Bank, with the IMF programme’s primary-surplus targets continuing to constrain discretionary spending.
For Kalutara specifically, Jayatissa said projects worth Rs. 550 million have been approved this year for rural roads under provincial and central funding, with another Rs. 100 million for bridges and culverts. Total district infrastructure spending stands at around Rs. 2 billion this year, he said.
Source: Newswire.
