As Sri Lanka prepares for Budget 2027, Opposition political parties are raising questions over the Government’s economic priorities and its ability to deliver meaningful relief to the public amid continued cost-of-living pressures and concerns over economic growth.
While the country has made progress towards macroeconomic stability, the challenge of translating these gains into tangible improvements in living standards remains a central concern.
With taxation, employment, investment, and the fulfilment of election promises shaping public expectations, the upcoming budget is being viewed as an important test of the Government’s economic direction and policy commitments.
Against this backdrop, The Sunday Morning sought the views of representatives of several Opposition political parties – the Ilankai Tamil Arasu Katchi (ITAK), Mawbima Janatha Party (MJP), New Democratic Front (NDF), Sri Lanka Podujana Peramuna (SLPP), and Samagi Jana Balawegaya (SJB) – on what they expect from Budget 2027, their concerns over the current economic situation, and the measures they believe the Government should prioritise.
Pic - ITAK MP Shanakiyan Rasamanickam
A ‘make-or-break’ test for Govt. as public patience wears thin: ITAK
The upcoming budget must prioritise relief from the rising cost of living, reduce the tax burden on ordinary citizens, and demonstrate the Government’s commitment to fulfilling its election promises, ITAK MP Shanakiyan Rasamanickam said.
He stressed that the primary expectation of Sri Lankans from any budget was economic relief, particularly through lower taxes and reduced living costs.
However, Rasamanickam said that the budget should not be viewed merely as a statement of fiscal policy but also as an indication of the Government’s broader governance priorities. He said that the ITAK would closely examine the Government’s position on Provincial Council Elections and the proposed new constitution, noting that the constitution-making process had yet to begin.
Describing Budget 2027 as a “make-or-break” moment for the Government, Rasamanickam warned that public patience had been tested beyond tolerable limits, particularly as several pre-election promises relating to economic relief remained unfulfilled. He argued that the Government could no longer rely on economic stability or external crises to justify delays in delivering relief.
Rasamanickam also raised concerns over the country’s foreign exchange requirements, increasing fuel import costs, challenges facing exports, and what he described as insignificant foreign direct investment inflows.
While acknowledging improvements in Government revenue and tax collection, he questioned whether those gains had translated into tangible benefits for the public.
“What’s the point of having a Treasury that’s apparently full if the public are suffering?” he questioned.
He maintained that the success of Budget 2027 would ultimately depend on whether it delivered meaningful economic relief while providing a clear direction on the Government’s fiscal and governance policies.
Pic - MJP General Secretary Ranjan Seneviratne
Govt. must prioritise economic relief: MJP
Mawbima Janatha Party (MJP) General Secretary Ranjan Seneviratne urged the Government to prioritise immediate economic relief for the public through Budget 2027, warning that rising living costs, sluggish economic growth, and declining investor confidence were placing an increasing burden on Sri Lankan households.
Commenting on the country’s economic situation ahead of the upcoming budget, Seneviratne said that Sri Lanka was facing a dual economic challenge, with a stagnating economy and escalating living costs pushing working families further into poverty.
“Our country is facing a double blow: a stalling economy with zero investor confidence and a skyrocketing cost of living that is pushing hard-working families into poverty,” he said.
He criticised the Government for failing to provide meaningful economic relief, claiming that ordinary citizens were being forced to choose between basic necessities while the authorities continued to rely on political rhetoric.
Seneviratne stressed that economic recovery should not come at the expense of financially struggling households, insisting that immediate and targeted assistance must take precedence over political considerations.
“Economic recovery cannot happen on the backs of struggling families. The Government’s top priority right now must be immediate, targeted economic relief for the public – not political posturing,” he said.
Seneviratne further called on the Government to introduce a clear and practical economic recovery plan aimed at reducing living costs, restoring economic growth, and protecting vulnerable households. He maintained that the Government must move beyond political statements and deliver tangible measures to ease the financial pressures faced by the public.
Pic - NDF MP Ravi Karunanayake
Govt. must adopt radical economic reforms: NDF
New Democratic Front (NDF) MP and former Finance Minister Ravi Karunanayake urged the Government to introduce radical economic reforms through Budget 2027, warning that conventional fiscal policies would be insufficient to address Sri Lanka’s economic challenges and deliver meaningful relief to the public.
Speaking on his expectations for the upcoming budget, Karunanayake stressed that the Government must adopt an innovative and forward-looking approach to stimulate economic growth, improve purchasing power, and address rising poverty and unemployment.
He said that Budget 2027 was being prepared against a challenging international and domestic economic backdrop, with fiscal constraints and external economic pressures limiting the Government’s ability to introduce new development initiatives.
Referring to a projected Gross Domestic Product (GDP) of approximately Rs. 39 trillion in 2027, Karunanayake questioned how much of the proposed Government expenditure would be available for new initiatives after meeting existing commitments.
According to his preliminary calculations, only around Rs. 200 billion would remain for genuinely new activities, which he described as inadequate to generate meaningful economic growth. He argued that continuing with conventional expenditure allocations and existing fiscal policies would not produce the economic transformation required.
Karunanayake also raised concerns over inflation, which he estimated at around 8–9%, and its impact on household purchasing power. Highlighting rising poverty and unemployment, particularly among educated and technically qualified individuals, he stressed the need for policies that encouraged investment, generated employment, and improved living standards.
He further cautioned against using the economic crisis of 2022 as the benchmark for measuring the country’s recovery, arguing that improvements from an exceptionally low economic base did not necessarily reflect genuine economic progress.
Karunanayake maintained that the Government should focus on sustainable economic growth rather than relying solely on improvements in macroeconomic indicators.
He emphasised that the success of Budget 2027 would ultimately depend on its ability to introduce meaningful structural reforms, stimulate productive economic activity, and ensure that economic improvements translated into tangible benefits for ordinary citizens.
Pic: SLPP Political Bureau member Milinda Rajapaksha
Govt. should prioritise effective capital spending, fairer taxes: SLPP
SLPP Political Bureau member Milinda Rajapaksha said that Budget 2027 should prioritise effective utilisation of public funds, a fairer taxation system, and measures to restore investor confidence, warning that increased allocations would serve little purpose without proper implementation.
He criticised the Government’s failure to fully utilise funds allocated for development, claiming that less than 30% of the 2026 capital budget had been spent by September.
Rajapaksha stressed that the Rs. 1.75 trillion capital allocation proposed in the Appropriation Bill would not deliver meaningful development unless the Government addressed procurement delays and improved project implementation.
He called for quarterly publication of capital expenditure by each ministry and faster implementation of reconstruction projects, particularly those affected by Cyclone Ditwah, claiming that over 70% of released reconstruction funds remained unspent as of July.
On taxation, Rajapaksha urged the Government to shift towards a fairer system that placed greater emphasis on direct taxes, citing World Bank findings linking Value-Added Tax (VAT) increases to worsening poverty. He noted that the poverty rate remained at 16.9%, compared to 11.5% in 2019.
He also raised concerns over declining investor confidence, citing the withdrawal of China Merchants’ proposed $ 392 million logistics hub investment, Adani’s wind power projects, and several Port City investment proposals.
Rajapaksha stressed that predictable and transparent policies were essential to retaining foreign investors and attracting new investments.
He maintained that Budget 2027 should aim to achieve economic growth exceeding 7%, while creating meaningful employment opportunities, particularly for graduates.
Pic: SJB MP Dr. Harsha de Silva
Jobs must be the most important economic priority: SJB
SJB MP Dr. Harsha de Silva said that while Sri Lanka had achieved relative macroeconomic stability, this recovery had yet to translate into meaningful improvements in people’s lives when considering increasing poverty at household level.
He stressed that fiscal discipline needed to continue regardless of the IMF programme, calling for improved revenue collection, the removal of unnecessary tax concessions, and action against revenue leakages, among others.
Dr. de Silva identified job creation as the foremost priority for Budget 2027, calling for investment, industrial development, higher productivity, export growth, and meaningful employment opportunities. He stressed that the success of economic recovery must be measured by improvements in ordinary people’s lives, noting that a national economic development strategy was crucial.
He further stated that there was inadequate implementation regarding investment frameworks and also questioned the lack of a credible growth strategy.