President Anura Kumara Dissanayake stated that the Government is planning to allocate LKR. 2,000 billion for capital expenditure in 2027, making it the year with the highest capital expenditure in Sri Lanka’s history.

He said that the Treasury now maintains a strong account position due to the government’s success in maintaining sound financial management. 

“During 2022 and 2023, the Treasury overdraft stood at LKR. 800 billion, and the Treasury functioned on borrowed funds. However, we have now succeeded in maintaining the Treasury with a positive balance,” he said. 

The President further said that as a result, they are able to allocate the necessary funds for essential development work benefiting rural communities.

“Recently, we met separately with Members of Parliament from the relevant districts and inquired into the development work required in their respective areas. The necessary allocations for those projects can be included in the upcoming Budget. However, the responsibility for ensuring the proper utilisation of those funds rests with you,” he added. 

The President made these remarks today (22) morning while attending the commencement of construction work on the Ampara Multi-Purpose Town Hall project, which is being implemented at a cost of LKR. 1,744.85 million.

The new multi-purpose complex, equipped with modern facilities, is being constructed to fulfil a long-standing public requirement that has remained unmet for more than 70 year. The project aims to improve facilities for the public visiting the Ampara Municipal Council, provide the business community with a lawful and well-regulated environment to develop their enterprises and enhance the cultural life of the people of the Ampara District.

The complex will include a modern auditorium, shopping complex, office complex and a spacious vehicle parking facility. Construction is scheduled to be completed by 31 December 2028.

A special feature of the occasion was the participation of E.D. Hemachandra, an employee who has dedicated many years of service towards the development of the Ampara Municipal Council, as an invited guest.

Further addressing the gathering, President Anura Kumara Dissanayake pointed out that LKR. 22,000 million has been allocated for 2026 for the construction of roads, bridges, canals and public buildings in the Ampara District. 

The President emphasised that it is the responsibility of public officials to ensure that these allocations are properly utilised within the 2026 financial year in order to deliver prompt benefits to the people.

President Anura Kumara Dissanayake’s full statement:

“The challenge we face as a Government is ensuring that the allocations we make are fully utilised within the relevant financial year. For the Ampara District alone, LKR. 22,000 million has been allocated in 2026 for roads, bridges, canals and building construction. The responsibility of managing these allocations properly, preparing plans and implementing them efficiently lies with public officials. If the work planned for this year cannot be completed within the year, it will be carried forward to the following year, thereby delaying subsequent projects as well.

Therefore, the main challenge we face is the failure to utilise allocated funds properly within the relevant financial year. Recently, I called for reports on several major projects. According to those reports, projects initially estimated at LKR. 300 billion have eventually cost LKR. 600 billion due to delays and failure to complete them on time. In other words, an additional amount equal to the original estimate has been lost due to delays.

 That is why we expect these allocations to be utilised properly. We are preparing to make next year, the year with the highest capital expenditure in Sri Lanka’s history. Plans have already been formulated to allocate LKR. 2,000 billion for capital expenditure next year.

Due to our success in maintaining sound financial management, the Treasury now maintains a strong account position. During 2022 and 2023, the Treasury overdraft stood at LKR. 800 billion and the Treasury functioned on borrowed funds. However, we have now succeeded in maintaining the Treasury with a positive balance. As a result, we are able to allocate the necessary funds for essential development work benefiting rural communities.

Recently, we met separately with Members of Parliament from the relevant districts and inquired into the development work required in their respective areas. The necessary allocations for those projects can be included in the upcoming Budget. However, the responsibility for ensuring the proper utilisation of those funds rests with you.” (Newswire)

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