SLBA presents Budget proposals to drive economic recovery

THE Sri Lanka Banks' Association (SLBA), the apex body representing the collective voice of the licenced commercial banks, has submitted a far-reaching set of proposals for inclusion in the upcoming 2026 Budget.

- 

The proposals, developed and submitted by the SLBA were shared with Deputy Minister of Finance, Planning and Economic Development Dr. Anil Jayantha Fernando at a high-level consultation held at the Presidential Secretariat recently.

In a statement, the SLBA noted that the submission underscores the critical role of banks in rebuilding economic resilience, restoring investor confidence and accelerating growth. The recommendations, the SLBA emphasised, are designed not only to stabilise the financial system, but also to expand opportunity for businesses, entrepreneurs and households nationwide.

Financial stability and taxation reform

The SLBA has called for urgent reforms to strengthen the financial sector's capacity to support recovery. Proposals include targeted credit guarantee schemes to help revive distressed enterprises, accelerated tax deductibility for impairment provisions to encourage restructuring, and alignment of banking sector taxation with regional benchmarks.

Excessive taxation, currently at 53% for domestic banks and 65% for foreign banks, is described as a barrier to competitiveness and capital formation. A fairer regime, the Association argued, would allow banks to direct resources towards lending for critical infrastructure and priority sectors.

Supporting and formalising the SME sector