What AKD missed: Sri Lanka must earn $50 b foreign exchange annually

WHILST the dust settles down on the Budget 2026 with many points of view expressed, the key point missed out was how Sri Lanka can become a 6% plus economy in the next three years or have a forex earning of $50 billion annually.

- By Rohantha Athukorala

1 Sri Lanka will only be at a 50% implementation on the 2025 capital Budget. President and Finance Minister Anura Kumara Dissanayake delivering the 2026 Budget in Parliament on 7 November

Let me explain.I remember one of my bosses in the UN once stating that strong annual plans tend to have a few strategic initiatives to make a significant impact to the top line. What he meant was that, if the objectives to be met are clear, then we must have a few laser sharp initiatives that can achieve the set objectives.

He went on to explain how good leaders are so clear on the objectives that have to be achieved, a combination of entrepreneurial and data driven plans mixed with gold standard execution that will really make a difference. Budget 2026 sadly, did not bring out these characteristics. Let’s not forget that the current Government has a two thirds majority. Which means that a laser sharp Budget was a possibility.

If we were to analyse Budget 2026, there is something for everybody. I guess when a political party has a two thirds majority and was able to garner 6.8 million votes to a single political party, there is no option but to have a multitude of initiatives to cater to the different segments of the community. Whilst this strategy has its merits, the point missed in Budget 2026 is that this strategy will not get Sri Lanka out of the red. The fact of the matter is that even though the foreign reserves stand at $6.2 billion dollars, once the currency swaps are taken off the net reserves as per IMF stipulations Sri Lanka is at a minus on foreign reserves. If we use the Central Bank stipulations it is at a low ebb of around $ 3.4 billion. This is the naked truth. Let’s accept it.