Why Sri Lanka needs a National Budget Performance and Evaluation Office now more than ever

SRI Lanka is now facing one of its gravest natural disasters in recent memory, as Cyclone Ditwah and the associated weather system continue to bring relentless rain, flash floods, and landslides across the island.

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In view of the severe disaster situation, Speaker Jagath Wickramaratne has announced an amended schedule for the Committee Stage debates on the 2026 Budget in Parliament. It is important to note that President Anura Kumara Dissanayake presented the 2026 Budget to Parliament — prior to the onset of this national calamity—in his capacity as the Minister of Finance. Since its presentation, various interpretations have emerged from economists, the business community, academics, and civil society. Some analyses draw on economic expertise, others reflect social understanding, while certain groups read the Budget through political ideology. But with the country now grappling with a humanitarian and economic emergency, it is clear that fragmented interpretations will not suffice. This is a moment when Sri Lanka needs a unified, responsible, and collective “national reading” of the Budget—one that rises above personal or political positions and focuses on safeguarding citizens, restoring stability, and guiding the nation toward recovery.

This Budget is unique for several reasons. To understand it properly, we must “read” it through the lens of Sri Lanka's current economic realities as well as the fiscal consolidation pathway outlined under the International Monetary Fund (IMF) program. Some argue that this Budget reflects a liberal policy orientation, citing several key allocations that support this view: strong investment in human capital, an infrastructure-led growth strategy, targeted support for private enterprise and MSMEs, and an emphasis on fiscal discipline and transparency.