President Anura Kumara Dissanayake has emphasized the need for the efficient and timely utilization of funds allocated under the 2026 Budget, despite prevailing financial constraints.
Speaking at a meeting with Ministry Secretaries held at the Presidential Secretariat today (January 5), the President stated that the 2026 Budget was formulated based on national priorities and stressed that public officials bear the responsibility of ensuring that allocated funds deliver maximum benefit to the public.
He noted that although substantial allocations had been made for capital expenditure in previous years, many development opportunities were lost due to inefficiencies within the state machinery and the failure to translate funding into tangible outcomes. The President also pointed out that budget planning in the past was sometimes influenced by concerns over “unspent funds,” which hindered effective utilization.
President Dissanayake said that necessary groundwork has now been laid to ensure that funds allocated for 2026 are made available and fully utilized without delays.
Explaining the fiscal framework, he stated that under the International Monetary Fund’s Extended Fund Facility (EFF), government expenditure is limited to around 13 percent of national production, with at least four percent allocated for capital expenditure. He added that all ministerial allocations are guided by the principle of prioritizing national needs.
The President further highlighted that the government remains the country’s largest investor, with Rs. 1,400 billion allocated for capital expenditure in 2026, along with an additional Rs. 500 billion earmarked for reconstruction work following damage caused by Cyclone Ditwah.
He stressed that Ministry Secretaries are primarily responsible for managing these funds efficiently to achieve expected physical development, warning that delays or failures in project implementation would deny citizens the benefits intended for them.
During the meeting, detailed presentations were made on the project allocations and planned use of funds by each Ministry for 2026. Secretary to the President Nandika Sanath Kumanayake, along with Ministry Secretaries and senior officials from the Ministry of Finance, were also in attendance.
