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2026 Budget commits over Rs. 688 b to construction: Sector poised for acceleration

November 27, 2025

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Daily FT

SRI Lanka's 2026 Budget signals one of the strongest commitments to construction-sector investment in recent years, with more than Rs.

2026 Budget commits over Rs. 688 b to construction: Sector poised for acceleration

President and Finance Minister Anura Kumara Dissanayake

688 billion channelled into roads, housing, water systems, urban development and public infrastructure. The allocations, detailed in the BDO Budget Highlights 2026, outlines an ambitious rollout of projects expected to shape national connectivity, modernise cities and upgrade essential public services.

Highways dominate: A push to reconnect the country

The Transport, Roads and Highways Ministry receives the largest share, reflecting the government's intention to reactivate suspended projects and deliver long-delayed transport corridors. Key provisions include: Rs. 342 billion for nationwide road development, Rs. 66.15 billion for the Kadawatha-Mirigama stretch of the Central Expressway, Rs. 10.5 billion and Rs. 20 billion for two further segments of Phase III, Rs. billion and Rs. 1.5 billion for land acquisition for the Kurunegala-Dambulla and Ruwanpura expressways, Rs. 330 million for feasibility work on a new elevated highway link to Marine Drive.

This concentration of funding positions the road network as the backbone of the 2026 construction agenda.

Urban development: Building the next generation of cities

المزيد من القصص من Daily FT

Daily FT

UDA to lease Pettah Floating Market to Japanese investor for $ 160 m

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time to read

1 min

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Daily FT

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Sri Lanka have one more hurdle to clear to reach final

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2 mins

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Daily FT

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time to read

3 mins

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Daily FT

Sri Lanka must shift from volume to value to unlock full tourism potential: SLTDA Chairman

Highlights value gap and over-tourism pressures

time to read

3 mins

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Daily FT

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President to attend Sri Lanka Economic and Investment Summit 2025 on opening day

PRESIDENT Anura Kumara Dissanayake will attend the Sri Lanka Economic and Investment Summit 2025 on 2 December, during which he will join The Ceylon Chamber of Commerce Vice Chairperson Bingumal Thewarathanthri for an on-stage conversation aligned with the Summit's theme-'Gateway to Growth-Asia's Emerging Opportunity!

time to read

1 min

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Daily FT

Tourism earnings to undershoot despite arrivals surge

SRI Lanka is bracing for lower-than-expected tourism earnings following a downward revision in the estimated daily spending of visitors by the Sri Lanka Tourism Development Authority (SLTDA), a key metric used to calculate the industry's contribution to the economy.

time to read

2 mins

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Daily FT

Pent-up demand for vehicle imports stabilises - CBSL

CENTRAL Bank (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said the surge in vehicle imports that followed the lifting of the five-year import suspension has now tapered off, with pent-up demand largely exhausted by November.

time to read

1 min

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Daily FT

Reserves set to hit post-crisis high in December: CBSL Governor

CENTRAL Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said Sri Lanka's gross official reserves are expected to climb to the highest level recorded since the height of the economic crisis by the end of December, whilst expressing confidence that the country will comfortably meet its reserves target under the International Monetary Fund (IMF) program.

time to read

1 mins

November 27, 2025

Daily FT

Daily FT

Apparel exports maintain momentum, up 6.1% in first 10 months of 2025 - JAAF

THE Joint Apparel Association Forum (JAAF) yesterday said apparel and made-up articles exports for January to October 2025 increased by 6.12% year-on-year (YoY), maintaining steady momentum despite weaker monthly results in October.

time to read

1 min

November 27, 2025

Daily FT

CBSL holds policy rates steady

THE Central Bank of Sri Lanka (CBSL) yesterday delivering the sixth and final Monetary Policy Review for 2025 announced that rates would remain unchanged at 7.75%.

time to read

2 mins

November 27, 2025

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