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Rs. 2 trillion to be allocated for capital expenditure in 2027: President
Jul 28, 202609:23 PM
Rs. 2 trillion to be allocated for capital expenditure in 2027: President
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President Anura Kumara Dissanayake has stressed the need to reduce government recurrent expenditure and increase investment in development, stating that public resources should be directed towards the country’s progress rather than maintaining government operations.

 

The President made the remarks while participating in the Galle District Special Coordination Committee Meeting held today (28) at the Galle District Secretariat.

 

He said the government’s economic plans for the coming year have been prepared with the objective of reducing recurrent expenditure, which currently accounts for 9%, while increasing capital expenditure, currently at 4%, to support greater development investment.

 

President Dissanayake said plans are in place to allocate Rs. 2 trillion for capital expenditure in 2027, representing an increase of approximately 40%, the President’s Media Division said in a statement.

 

Emphasising the importance of responsible financial management, the President said every rupee received by the Treasury must be utilised effectively for national development, with the aim of creating a financially disciplined country where future generations are not burdened by debt repayments.

 

He noted that Sri Lanka has shown positive progress in international assessments related to economic performance and social indicators, while gaining recognition for improvements in areas such as economic stability and reducing corruption, the PMD stated.

 

The President said the upcoming Budget will give special attention to improving public sector efficiency through digitalisation, enabling citizens to access government services remotely.

 

He added that the government is considering extending the retirement age in selected sectors to retain experienced and skilled professionals within the public service.

 

During the meeting, progress on the Galle District Development Plan and projects implemented under the 2026 Budget was reviewed, along with the district’s financial requirements for 2027.

 

Discussions also focused on rural road development, poverty reduction initiatives, housing programmes, sports development, water supply projects, waste management and the Galle City Development Plan.

 

Officials informed the meeting that 122 rural road projects had been approved with an allocation of Rs. 250 million, with 57 projects already completed.

 

The progress of the "Ratama Ekata" national programme to combat the drug menace was also reviewed, with officials stating that 12,608 raids had been conducted in the Galle District since the launch of the operation, resulting in the seizure of 119.6 kilograms of illicit drugs.

 

The President instructed relevant institutions to work together under a coordinated approach to address development challenges and implement projects according to a unified national plan.

 

The meeting was attended by government ministers, Members of Parliament, provincial and local government representatives, senior officials and heads of security institutions.

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