Evaluating 2026 Budget through green energy, agriculture, and strategic investment

THE 2026 Budget represents not just a financial roadmap, but a moral and strategic moment; one where public ambition for sustainable growth, environmental stewardship, and inclusive development must translate into real, bankable projects.

- By Hiran Daluwatta

While the Budget speech by President/ Finance Minister Honourable Anura Kumara Dissanayake signals many promising directions (Full Budget Speech 2026), the challenge now is effective delivery. For investor firms this brings both an opportunity and a responsibility: to align vision with national priorities, and to mobilise capital, expertise and partnerships to turn policy into impact.

The 2026 Budget is framed around three interlocking themes: economic recovery, investment confidence, and green transformation. In his speech, President Dissanayake emphasised replacing “cronyism with partnership,” and embedding predictability and rule-based incentives to attract quality investment. Key structural reform measures include:

1. Amendments to the Strategic Development Projects Act and the Colombo Port City Commission Act, aimed at streamlining foreign direct investment (FDI) processes and making incentive systems more transparent.

2. A PPP (Public-Private Partnership) Act, with a draft bill submitted for public consultation and parliamentary approval.

3. A new Investment Protection Act, scheduled for passage in early 2026, to protect foreign and domestic investors.

4. Significant allocations to SMEs, rural credit, and agricultural value chains: loans of up to LKR 50 million for SMEs, concessional loans for agriculture via a New Comprehensive Rural Credit Scheme (NCRCS), and a dedicated “Sustainable Farmers’ Loan Fund” (LKR 800 million) to support climate-smart farming.

5. A bold irrigation investment package, with Rs. 91,700 million allocated to lift up irrigation infrastructure and water systems.

6. A push for green energy, tied to new economic opportunities — including data centres, green hydrogen, and transport electrification.