President Anura Kumara Dissanayake says Sri Lanka is racing against time to rebuild its collapsed economy, restructure debt, and lure investors before the clock runs out.
Sri Lanka’s 2026 Budget was presented with a strong message of recovery, ambition, and urgency as President Anura Kumara Dissanayake announced that the country is close to completing its full debt restructuring process. A key highlight was the decision to restructure the US 210 million dollar debt of SriLankan Airlines within this year, as part of a broader effort to reduce the nation’s debt-to-GDP ratio to 87 percent by 2030.
The President said Sri Lanka has already secured 823 million dollars in Foreign Direct Investments by September, with the government pushing for more investor confidence through policy stability, improved infrastructure, and faster approval systems. The administration is targeting 7 percent economic growth while keeping inflation below 5 percent. A major goal is to restore the pre-crisis economy by the end of 2025 and increase foreign reserves to 7 billion dollars within this year. The budget also prioritises transparency and institutional reform, with plans for an e-procurement system and a judicial code of ethics drafted by an expert panel. Another committee will fast track Free Trade Agreement negotiations. The government says its focus now is fiscal discipline, efficient governance, and rebuilding global trust in Sri Lanka’s economy.
