The debate on the Second Reading of the 2027 Budget begins in Parliament today at 9.30 a.m. This marks the third budget brought forward by the National People's Power (NPP)-led administration and stands as the 81st budget in Sri Lanka's history.

President Anura Kumara Dissanayake, delivering the budget in his role as Minister of Finance, Planning and Economic Development on 12 November, laid out plans to move from stabilisation to economic expansion and transformative growth.

Spending and Deficit Numbers

Government spending for 2027 is projected at Rs. 7.933 trillion, rising from Rs. 7.309 trillion in the 2026 revised estimates. Recurrent expenses are expected to take up Rs. 5.944 trillion, with Rs. 1.41 trillion allocated for salaries and wages, Rs. 2.643 trillion for interest payments, and Rs. 1.482 trillion for subsidies and transfers.

The budget deficit is estimated at Rs. 1.753 trillion, representing 4.5 per cent of GDP. This is an increase from the Rs. 1.328 trillion deficit recorded in 2026. To plug this gap, the Government plans to secure Rs. 1.643 trillion through domestic financing and Rs. 110 billion via foreign sources.

Revenue Targets and Public Investment

Total revenue and grants are estimated at Rs. 6.18 trillion, with total revenue accounting for Rs. 6.15 trillion. Taxes are expected to generate Rs. 5.667 trillion, which includes Rs. 1.341 trillion from income taxes, Rs. 3.592 trillion from goods and services taxes, and Rs. 754 billion from external trade taxes. Non-tax revenue stands at Rs. 463 billion, while grants are placed at Rs. 30 billion.

A sum of Rs. 2 trillion has been set aside for public investment, bringing it to 5.1 per cent of GDP. The capital plan will focus on transport networks, roads, railways, and logistics alongside social development initiatives. The Budget aligns with ongoing reforms under the International Monetary Fund's Extended Fund Facility.

What happens next

The Second Reading debate will continue until November 20, ending with a vote at 6.00 p.m. Following that, the Committee Stage debate will run from November 21 to December 14, when the final vote on the Third Reading will be held.