Speech by Minister of Energy Eng. Kumara Jayakody in Parliament on 11.11.2025
I would like to thank for giving me this opportunity to participate in the debate on the 2026 budget.
When we briefly analyze these budget proposals, it becomes clear that a total of Rs. 4485 billion has been allocated as primary expenditure for the year 2026, and apart from the allocations made to all Ministries, Rs. 109.42 billion has been allotted for the implementation of the annual budget. In addition, it includes Rs. 2617 billion for loan interest and Rs. 10 billion for advance payments, altogether accounting for a total expenditure of Rs. 7102 billion. The expected revenue for the year is Rs. 5355 billion. Accordingly, we have attempted to reduce the budget deficit to Rs. 1757 billion.
In addition, Rs.1878 billion has been allocated for debt repayments and Rs. 109 billion for Treasury bill adjustments. Accordingly, the borrowing limit that requires approval from Parliament is stated as Rs. 3740 billion.
It is no secret that we have steered this country’s economy towards stability without undermining the trust placed in our government by the majority of our people. We are not presenting a traditional, annual budget. Instead, what we have presented outlines the role of the year 2026 in the continuous programme to achieve the policy objectives with annual progress and according to the government manifesto A Thriving Nation, A Beautiful Life. Under this, we are working towards 06 main strategic objectives.
- Sustainable and Inclusive Economic Growth
Attracting investment is a priority, and our primary objective is to develop the necessary infrastructure to attract investment such as transportation, highways, communications, digital, and energy.
- The development of the transmission system required for absorbing energy generated by investors has been considered urgent and a top priority, particularly in promoting the energy sector, and the preliminary work for constructing the transmission systems at New Habarana, Kappalthurai, Kappalthurai Sampur, New Habarana, and Kilinochchi has already commenced.
- In addition, it is anticipated to design, tender and construct the transmission systems at Habarana, Kirindiwela, Norochcholai, Wariyapola, Monaragala, and Hambantota, through direct foreign exchange. Furthermore, efforts to ensure the debt sustainability required to attract investment will be continued.
- Introducing investor-friendly rules and ensure fair treatment for everyone.
- Establishing a National Single Window for the convenience of investors.
- Export Diversification
- Diversification of goods and services
- Market diversification, introducing National Single Window for the convenience of exporters.
- Debt Sustainability
We consider it a great achievement that we have already achieved the economic indicators or targets that we need to achieve by 2032, which we are currently maintaining very successfully. Anyhow, we will continue to advance our efforts.
- Production Economy
- Encouraging agriculture, small and medium scale industrialists.
- Promoting value-added products related to mineral resources.
- Taking necessary steps to manufacture consumer goods that are currently imported, within the country itself.
- Ensuring food availability and security
- Introducing and implementing collateral-free and concessional loan schemes.
- Alleviating Poverty
- Empowering economically underprivileged groups and integrating them into the economy.
In fact, nearly 75% of the families in the country are currently requesting the welfare subsidy. Actually, our position is that poverty should be eradicated. Gradually rescuing these groups out of poverty under several steps is our government’s objective. Although previous governments have continued to take advantage of the plight of these people for their political agendas, our government does not wish to take that path. We have allocated the necessary funds in this budget and have taken measures to continue making improvements, while gradually elevating current welfare beneficiaries to a higher economic level.
- Digitalization
- In particular, the public service will be prioritized and will be brought under one network with the aim of establishing a dignified and efficient public service.
- Efficient revenue collection.
- Networking of fisheries industry and industrialists and setting up necessary facilities. In particular, as the government, we are working to provide the necessary communication facilities to the fishing community so that everything such as weather conditions, identification of fish locations, and sea conditions can be easily accessed by the fishing community.
- Eradicating corruption through transparency.
- In fact, we hope to adopt digitalization in the future and carry out procurement activities as E-Procurement. Thereby, we will be able to indicate and maintain transparency.
- Also, we have made plans to make every payment cashless in the future. This will help to minimize corruption. We have to ensure transparency. The necessary basic plans have been initiated and are being implemented in this regard.
- We need to bring the Digital technology to the forefront as an industry. We use digital technology as a supporting service, and we have launched the necessary development activities to take digital technology as an industry to the world.
The preliminary activities for developing digital infrastructure are already underway. Necessary arrangements have been made to establish 100 communication towers within the next year. Also, we have initiated the establishment of Data Centers that will integrate the energy sector and the digital sector. Large investment companies and parties with strong interest have come forward. We are currently in the process of making necessary arrangements in this regard. These Data Centers will bring in a higher income for us and also allow us to use the energy we produced. We are moving forward with these development activities.