Sri Lanka 🇱🇰 spent less than 30% of its 2026 capital allocation through September - EconomyNext

⭕ Sri Lanka 🇱🇰 allocated Rs.1,380 billion for capital spending in 2026 - to fund infrastructure and other public investment.

⭕ First nine months: around Rs.385 billion spent (~28%).

⭕ Final three months: around Rs.995 billion (~72%) left to spend.

⭕ The government says it still expects to use the full allocation by December.

⭕ Last year, the government said the same thing. Even with Cyclone Ditwah hitting the country and the government spending heavily on relief efforts, around Rs.313.1 billion- 23.8% of the 2025 capital allocation went unspent.

⭕ Year after year, bureaucratic delays, protracted procurement disputes, politicized project selection and a lack of technical expertise within line ministries leave a significant portion of capital expenditure unspent on the Treasury’s books.

⭕ Capital spending supports economic activity now and creates the infrastructure needed for a more productive economy in the future. Repeatedly falling short means both benefits are delayed, raising the risk that today’s recovery will give way to weaker growth in the years ahead.

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