- Infrastructure development, rollout of digitalisation among key priorities
- Wage gaps, spending capacity woes continue to impact masses
As Sri Lanka prepares for the 2027 Budget, the public is looking for more than just immediate relief, with concerns spanning from high living costs and taxes to employment, education, healthcare, and infrastructure. Many people expect the budget to ease household burdens while increasing economic opportunities.
At the same time, citizens are looking for long-term solutions that will improve incomes and support those who are struggling to become financially independent. Concerns remain about the effectiveness of Government expenditure and whether budgetary allocations will result in meaningful gains.
Speaking to The Sunday Morning, citizens and economists outlined a number of priorities for Budget 2027, including the need for cost-of-living relief, deeper economic reforms, improved public services, and measures to create long-term opportunities for the people of this country.
Calls for affordability, opportunities and development
Businessman Sarath Chandrasiri, 56, from Horana, said that the Government should prioritise reducing the cost of living, expanding public transport, and advancing major infrastructure projects in the 2027 Budget.
He said that fuel prices should be reduced in order to provide relief to households struggling with rising day-to-day expenses.
“Firstly, fuel prices need to come down because they are making it very difficult for us to manage our day-to-day lives. The cost of living is already high, so reducing fuel prices would provide some relief to the public,” he said.
Chandrasiri also called for further reductions in electricity tariffs and the prices of essential goods. “Electricity bills also need to come down further. If the Government can reduce electricity costs along with fuel prices and the prices of essential goods, it would make a significant difference to people who are struggling with their household expenses,” he said.
Beyond immediate cost-of-living concerns, Chandrasiri said that the Government should continue to maintain its focus on national development and infrastructure projects. “Catching thieves and dealing with corruption is important, but that alone is not enough. The country also needs to move forward with development projects,” he said.
He pointed to the proposed development of the Ratnapura highway as an example of the infrastructure projects he would like to see progress in 2027.
He also called for the expansion of Metro bus services to more routes. “At the moment, the service only goes up to Kesbewa, but we would like to see it extended to routes such as Colombo–Horana and Panadura–Ratnapura. Ultimately, we would like to see the Metro bus service expanded across the country. If the Government can do this through the 2027 Budget, it would be a positive development for the public and public transportation,” he said.
Chandrasiri further called for measures to make vehicles more affordable, noting that high vehicle prices remained a concern for prospective buyers.
He also proposed introducing low-interest loans for people seeking to start new businesses. “We would also like the Government to provide low-interest loans for people who want to start new businesses. Affordable financing would make it easier for people to start businesses and create opportunities for themselves,” he said.
He added that reducing the prices of essential goods, fuel, and electricity remained among the main measures he would like to see addressed through the 2027 Budget.
Seafarer Manju Sudharshana, 53, said that the 2027 Budget should prioritise reducing fuel prices, increasing incomes, easing the tax burden, and expanding access to more affordable financing and employment opportunities.
He said that high fuel prices had become a significant burden on households while also contributing to higher prices for food and other essential goods. “My biggest concern at the moment is the high price of fuel, which has become one of the biggest burdens on my household. High fuel prices restrict how much we can travel and affect our day-to-day activities,” he said.
Sudharshana said that reducing fuel prices could also help ease the broader cost-of-living burden faced.
“Fuel prices have an impact on the prices of food and other essential goods, so the overall cost of living has become very high. Therefore, I expect the 2027 Budget to address fuel prices and provide some relief to ordinary people, which would ultimately help improve their living standards,” he said.
He also called for measures to increase salaries and incomes in both the public and private sectors, saying incomes were not keeping pace with rising expenses.
“Prices of goods and services continue to rise, but salaries are not increasing accordingly, making it increasingly difficult for people to manage their daily expenses. I hope the budget will include measures to help incomes keep pace with rising costs, including better salaries and income opportunities in both the public and private sectors,” he said.
Sudharshana further urged the Government to reduce the tax burden on the public. “There are already so many taxes that people have to pay, adding to our day-to-day expenses. If the Government can reduce taxes or provide some relief, it would make a significant difference to ordinary people like us,” he said.
He also proposed introducing more affordable loan schemes with lower interest rates to help people invest in businesses and other income-generating activities. “Government-backed investment programmes or similar schemes could give people more opportunities to earn and become financially independent. If the 2027 Budget introduces such initiatives, I think the majority would really appreciate them,” Sudharshana said.
He added that the budget should also focus on creating stable and sustainable employment opportunities for the public.
Retired public servants seek salary anomaly correction
Retired Government employee Anoma Harisinghe, 63, called for the 2027 Budget to address what she described as a salary anomaly affecting public servants who had retired between 2020 and 2024.
Harisinghe said that retirees during this period had retired under earlier compensation scales, while Government employees who had retired in 2025 and 2026 received salary increases that would have been applicable to them in subsequent years.
“There is a salary anomaly affecting those of us who retired between 2020 and 2024. We retired under the oldest salary scale, resulting in a deficit in our basic salary. Those who retired in 2025 and 2026 received in full, as part of their basic salary, the increase that would have been due by 2027 had they remained in service. However, those of us who retired between 2020 and 2024 did not receive this benefit,” she said.
She added that retired public servants affected by the discrepancy were hoping for a solution through the 2027 Budget.
Harisinghe also called for a larger allocation for education, saying the share of the national budget allocated to the sector should be increased from the previous year. “The amount allocated to education from the total budget is very small. Therefore, we ask that next year’s budget include at least a small increase for education compared to last year,” she said.
She further proposed reducing taxes on essential school supplies, including books, school bags, and stationery, to make them more affordable for families.
Harisinghe also highlighted what she described as a disparity in salary adjustments between public and private sector employees.
She said that while Government employees were due to receive the 2027 salary increase from January, private sector employees often had to wait several months before receiving corresponding increases.
“When salary increases for the Government sector are announced in the Budget, Government employees receive them from January itself, but private sector employees usually do not receive them immediately. They often have to wait six or seven months. There should be some measure to address this issue,” she said.
Rural development, healthcare and employment
Insurance agent Hasanthi Pradeepika, 52, urged the Government to use the 2027 Budget to prioritise rural economic development, employment opportunities, healthcare, and public transportation, as well as to support measures for low-income families.
She said that women who already possessed skills and knowledge should be provided with practical training as well as resources to establish home-based businesses and generate additional income for their families.
“Practical workshops should be conducted to empower women who already have the knowledge and skills for home-based businesses. They should be provided with the necessary resources and steps should be taken to improve the economic conditions of families,” she said.
Pradeepika said that such programmes should be made accessible to a wider section of the population, noting that existing initiatives were limited in their reach.
She also proposed establishing wellness centres in rural areas to improve access to facilities supporting both physical and mental wellbeing.
Furthermore, she said that greater support should be provided to young people seeking to develop businesses and careers using modern technology, including access to basic resources and opportunities to improve digital knowledge and skills.
“Everything is becoming digitised, so young people must be provided with the foundation needed to develop their knowledge and skills. This can help create new jobs and businesses,” she said.
Pradeepika further proposed establishing community centres or similar facilities in villages where residents could meet, form social groups, and collectively identify and present proposals addressing local needs. She said that allocating funds at the village level for such initiatives could contribute to rural economic and social development.
She also stressed the need to strengthen policies aimed at reducing waste and corruption, saying that existing systems should be improved to better address persistent violations.
On waste management, Pradeepika called for systematic collection and management across towns, alongside improvements in workers’ wages, staffing, and infrastructure. “Although a mechanism exists, there are still shortcomings in waste management. Workers have also raised concerns about low wages and inadequate facilities. These areas need to be improved,” she said.
She also called for better public transport facilities in towns to reduce traffic congestion and encourage people to reduce their reliance on private vehicles. “If the new buses that have been introduced can be expanded to every town, people would be able to travel more efficiently while also helping to reduce traffic congestion,” she said.
Healthcare was another concern, with Pradeepika calling for rural hospitals to be upgraded and equipped with essential facilities and medicines, noting that patients frequently had to purchase medicines from private pharmacies.
“Many patients seek treatment at Government health facilities, but they often have to purchase medicines from private pharmacies. There are also concerns about the quality of some medicines. Upgrading rural hospitals to ensure they can provide proper healthcare would help address these issues,” she said.
Pradeepika also called for poverty reduction measures that focused on helping people to become economically independent. She said that poverty should not be addressed solely through welfare assistance, arguing that individuals with the knowledge and skills should instead be provided with guidance and opportunities to develop sustainable sources of income.
She also proposed expanding existing housing assistance for families living in inadequate housing conditions. “Currently, assistance is provided for around four houses per village each year. Increasing this allocation would help families living in inadequate conditions to build proper homes,” she said.
On agriculture and food security, Pradeepika called for people with suitable land to be encouraged to cultivate crops, with the necessary guidance and agricultural inputs such as plants and fertiliser.
She said that promoting the cultivation of fast-yielding crops could help rural communities generate income while strengthening food security and improving resilience to potential climate-related challenges. “Encouraging people to cultivate suitable crops can help us safeguard against the impacts of El Niño and ensure food security without shortages,” she said.
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Economist urges tax relief, spending efficiency
University of Colombo Department of Economics Professor Priyanga Dunusinghe said that the 2027 Budget should go beyond allocating funds to individual sectors and instead focus on reforming Sri Lanka’s tax system, improving public expenditure, and restructuring inefficient State institutions.
Prof. Dunusinghe identified taxation as one of the most pressing issues facing the Government, particularly as measures introduced during the economic crisis had become long-term features of the tax system.
He said that the Government had initially increased both direct and indirect taxes, including Pay As You Earn (PAYE) Tax and Value-Added Tax (VAT), in response to declining Government revenue during the crisis. However, the expectation had been that the tax base would subsequently be broadened and tax administration strengthened, thereby reducing the burden on existing taxpayers.
“These measures were not expected to continue in the medium to long term because they place pressure on those who pay taxes. They were introduced to address the revenue situation, but if they are going to remain in place for longer, the Government needs to assess whether they are still appropriate and whether the burden is being fairly distributed,” he said.
According to Prof. Dunusinghe, the 2027 Budget should seek to make the tax system fairer by improving tax administration efficiency and reducing tax avoidance, rather than continuing to place a heavy burden on those already within the tax net.
“People who pay taxes are already facing a significant burden, particularly through PAYE Tax and VAT. If that burden becomes too high, it could affect productivity, especially among professionals, and discourage people from working more, investing in their skills, or remaining in the country,” he said.
He also stressed that the effectiveness of the budget should not be assessed simply by the amount allocated for capital expenditure, but by how much of that allocation was actually used.
Prof. Dunusinghe noted that while the Government had indicated plans for significant capital expenditure, previous allocations had not always been fully utilised. “It is always good to increase capital expenditure, but the Government needs to make sure that funds are actually spent. Simply increasing the numbers is not a solution,” he said.
He said that the budget should clearly indicate how much of previous allocations had been utilised and why any remaining funds had not been spent, while introducing measures to speed up the implementation of viable infrastructure projects.
At the same time, he said that effective public investment was also important for encouraging private sector investment and creating employment opportunities. “If infrastructure-related investment does not take place, we cannot expect the private sector to create investment opportunities. Such investments can create opportunities for people, generate new job opportunities, and help existing workers earn more,” Prof. Dunusinghe said.
Beyond taxation and expenditure, he called for broader economic reforms, particularly in relation to State-Owned Enterprises (SOEs) and the public sector.
He said that the Government should examine whether certain State institutions should be merged, restructured, or closed if they no longer served a purpose. “This time around, the Government must seriously look into the public sector and SOEs,” he said, adding that restructuring could help make institutions more efficient and allow those who remained in the system to receive more competitive salaries.
Prof. Dunusinghe also called for a review of the design of welfare programmes, arguing that assistance should be targeted and time-bound while helping recipients develop skills and participate in economic activity. “The welfare system must gradually help people in the system. Instead, we simply continue providing payments without programmes to uplift people,” he said.
He said that the Government should instead introduce programmes that would help beneficiaries improve their skills and eventually become economically self-sufficient.
Prof. Dunusinghe also stressed the need to address economic dependency among young people, particularly those above the age of 15, arguing that education and skills programmes should help them move towards productive employment and greater financial independence.
“Young people above 15 should not remain dependent on adults. We need to have programmes that allow them to acquire skills, gradually become economically active, and contribute to the economy. Otherwise, we risk creating generations that remain dependent rather than contributing to the economy,” he said.
Education was another area he said required greater attention, particularly teacher remuneration and the quality of public education. He argued that inadequate teacher salaries had contributed to the growth of private tuition and were undermining the ability of the public education system to provide equal opportunities.
“The Government needs to give serious consideration to increasing funding for education, particularly to improve teacher salaries, thereby improving the quality of education,” Prof. Dunusinghe said.
He warned that the growing dependence on private tuition could have implications for social mobility, as students from wealthier and middle-income families were better positioned to afford additional educational support.
“If this situation continues, students from poorer families will find it increasingly difficult to enter universities, while middle- and upper-income families will benefit from free education,” he said.
Prof. Dunusinghe said the 2027 Budget should therefore adopt a broader vision focused on restructuring the economy, improving public sector efficiency, strengthening education, and creating conditions for sustainable private investment and economic growth.
“The 2027 Budget must have a broader vision towards restructuring the economy, particularly the public sector and SOEs, beyond allocating funds for the coming year,” he said.