The education Budget: a pre-Budget exploration

THE NPP Government will be presenting its first full-year Budget for 2026 tomorrow, outlining its policy priorities for an economy continuing to suffer under severe austerity. Education has been repeatedly highlighted as a priority for the Government, with promises of an increased allocation for the sector in the upcoming Budget. Increasing public spending on education incrementally to the desired level of 6% of GDP during the Government's tenure was a promise made in the NPP's election manifesto.

- BY FEMINIST COLLECTIVE FOR ECONOMIC JUSTICE

Sri Lanka's free public education system has contributed to achieving higher literacy, wellbeing and lower inequality for the country. Free education has ensured greater access and higher educational achievements for girls. Given that an education reform process is also underway, the allocations for public education in the upcoming Budget will be of great importance and interest to many. Thus, a closer look at the education Budget is imperative.

The NPP Government presented its 2025 Budget in February this year. During the parliamentary debates that followed, it was claimed that historically high allocations were made for education. The Government had allocated Rs. 619 billion for education in 2025, with general education being the largest recipient of Rs. 456.6 billion, followed by university education (Rs. 135.3 billion) and vocational education (Rs. 15.4 billion).

A greater part of the education Budget was spent on recurrent costs such as salaries, school meal program, textbooks and uniforms amounting to a total of Rs. 520.1 billion. While salaries make up a great portion of the Budget, school teacher salaries remain low with increments stalled for more than 25 years. The teacher unions staged protests in 2021 to demand that salary increments agreed upon in the Subodhini Report be paid out in full. This is yet to be implemented. Teachers were also excluded from recent salary revisions for the public sector.

Rs. 98.9 billion was allocated as capital expenditure, mainly focused on infrastructure development.

A larger portion of the education Budget was distributed to schools through the provincial councils, while some Budget lines such as preschool meals, teacher allowances and season tickets were administered through other ministries.