President AKD unveils reforms to anchor 7% growth target

President Anura Kumara Dissanayake, in a pivotal address presenting the National Budget for 2026 in parliament yesterday, announced reforms to dismantle hurdles for Foreign Direct Investments (FDI), highlighted by a firm commitment to evaluate state land for investor use.

- BY SANATH NANAYAKKARE

"Sri Lanka’s land parcel will be properly evaluated, and the government will determine which lands could be made available for investors bringing in foreign direct investments as making lands available for FDIs has been an obstacle in bringing foreign direct investments," President Dissanayake stated, emphasising a renewed focus on the investment climate. He pointed out that foreign investor confidence is currently being strengthened as Sri Lanka progresses on its economic stability and growth trajectory.

In tandem with the land policy, the President confirmed that the process of monitoring, regulation, and management of state assets is underway, alongside the crucial amendment of the Strategic Development Projects Act and the Port City Act. He further announced that the State Asset Management Act will be amended in 2026, and the State Commercial Enterprises Act is being introduced to Parliament, signaling a profound structural overhaul of state sector governance. The foundational Investment Protection Act will also be passed in the first half of 2026.

The President underscored the government’s success in achieving state fiscal stability, noting that the country is currently moving towards anchoring an economic growth of 7% in the medium term. Key economic indicators have demonstrated resilience, with the government taking maximum measures to maintain inflation below the 5% level, and the exchange rate being kept at a stable level despite global shocks.