Sri Lanka must fast-track reforms to make Budget 2026 work – CCC

Sri Lanka’s largest private sector body says that urgent reforms are needed to convert budgetary promises into tangible economic growth.

The Ceylon Chamber of Commerce (CCC) welcomed the National Budget 2026 as a blueprint for policy stability, fiscal consolidation, and disciplined debt management.

“Consistency in policy is critical for sustaining a transformative growth trajectory, underpinned by low inflation, stable interest rates, and renewed investor confidence,” the CCC said.

It warned that with the post-crisis consumption-led recovery now moderating, the nation must channel fiscal overperformance into productive public investment.

The CCC highlighted key sectors including infrastructure, digital services, transport, tourism, energy, education, health, and agriculture as pivotal to driving broad-based growth.

Targeted social and poverty alleviation measures, it said, could further reinforce inclusive development.

The CCC welcomed the incorporation of 18 of its proposals into Budget 2026.

These include the development of a Trade National Single Window, phased para-tariff elimination, a robust public-private partnership (PPP) framework, digital Single Window approvals, issuance of the first Digital ID, 5G licensing, a National Land Use Plan, streamlined land release processes, the resumption of Bandaranaike International Airport expansion, tourism promotion, and the introduction of the Public Commercial Business Management Act to improve state-owned enterprise (SOE) governance.

However, CCC officials warned that “effective implementation remains the litmus test for success.”

Delivering on initiatives such as the Trade National Single Window, PPP legislation, tourism marketing, and digital transformation projects is vital to converting policy intent into measurable results.

Other pressing priorities include strengthening tax administration to broaden the tax net, improving compliance, enhancing public sector efficiency, fast-tracking SOE and PPP-related legislation, and aligning reforms under the B-Ready Index.

The CCC also noted that targeted investment incentives could further boost investor confidence, given Sri Lanka’s potential as a strategic global supply chain partner.

“Fast-tracking reforms and ensuring robust implementation will be essential to achieve the 7 percent growth target outlined in Budget 2026,” the CCC said, calling for urgent action from policymakers to translate fiscal planning into sustainable economic development.