Budget 2026: Reforming public sector

PRESIDENT Anura Kumara Disanayake on Friday presented what seemed at first glance a pragmatic and forward looking Budget 2026 with strong emphasis on rebuilding, modernisation, and restoring investor and public confidence.

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This Budget of the socialist leaning Government has allayed fears, at least for the moment, of any radical left-wing change to the outlook of the economy. It is commendable that the Government seeks to reform public sector enterprises, increase revenue by broadening the tax base and has not undertaken vanity projects at the cost of the public coffers.

Yet, there is room for improvement, especially with regard to the projected Budget deficit.

On the positive side, the 2026 Budget allocates over Rs 30 billion for digital initiatives which will provide a unique digital identity to the citizens, an e-Grama Niladhari platform, and a digital economy advancement program. These are necessary initiatives that will make administration and the delivery of services more efficient.