Sri Lanka’s Committee on Public Finance (COPF) has reviewed the draft report on the Appropriation Bill for the Financial Year 2026, prepared under Standing Order 121(5)(i), highlighting a likely slowdown in government revenue next year due to falling vehicle imports.
The committee met in Parliament on Nov. 11 under the chairmanship of MP Dr. Harsha de Silva, the Department of Communication said.
The report compiled by COPF’s technical team reveals that the 2026 Appropriation Bill aligns with the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and commitments under the IMF programme.
According to the draft, state revenue in 2025 surpassed expectations by Rs. 100 billion, driven largely by higher-than-anticipated vehicle import tax collections.
Officials said this unexpected boost provided greater flexibility in formulating the fiscal framework for 2026.
However, the report cautions that revenue growth in 2026 is expected to slow, reflecting a projected decline in vehicle imports—a trend that could tighten fiscal space as the government advances its medium-term reforms.
The draft is scheduled to be presented to Parliament in the coming days.
The meeting also included discussions with representatives from civil organisations, who raised concerns about budget transparency, sectoral fund allocations, and several issues requiring policy attention.
They also submitted proposals aimed at improving public accountability in the budget process.
The COPF chair added that these views would be forwarded to the Ministry of Finance for consideration as part of the ongoing budget review.
Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, along with MPs Ravi Karunanayake, Ajith Agalakada, Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Thilina Samarakoon, and Lakmali Hemachandra, were present at the session.
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