CCC urges fast reforms to translate Budget 2026 into growth

 Fast-changing Colombo skyline

PIC BY NAZLY AHMED

• Stresses with post-crisis consumption-led recovery now moderating, SL must convert recent fiscal overperformance into productive public investment
• Says well directed capital expenditure could form next engine of broad-based growth
• Emphasises effective implementation of Budget 2026 remains litmus test for success

The Ceylon Chamber of Commerce (CCC), Sri Lanka’s largest private sector representative, welcomed National Budget 2026, describing it as a blueprint of policy stability, fiscal consolidation and disciplined debt management that continues the trajectory needed for the country’s medium-term reform agenda.

“Consistency in policy is critical for sustaining a transformative growth trajectory, underpinned by low inflation, stable interest rates and renewed investor confidence,” the CCC said. 

It stressed that with the post-crisis consumption-led recovery now moderating, the island nation must convert the recent fiscal overperformance into productive public investment.

The CCC highlighted that well-directed capital expenditure in infrastructure, digital services, transport, tourism, energy, education, health and agriculture, coupled with targeted social and poverty alleviation measures, could form the next engine of broad-based growth.

The CCC welcomed the incorporation of 18 of its proposals into Budget 2026, including the development of a Trade National Single Window and phased para-tariff elimination, a public private partnership (PPP) framework and digital Single Window for approvals, issuance of the first Digital ID and 5G licensing, advancement of a National Land Use Plan and improved land release processes, resumption of the Bandaranaike International Airport expansion project and tourism promotion and the introduction of the Public Commercial Business Management Act to strengthen the state-owned enterprise (SOE) governance.

However, the CCC emphasised that effective implementation remains the litmus test for success. 

“Delivering on commitments such as the Trade National Single Window, PPP legislation, tourism destination marketing and digital transformation initiatives is vital to translating policy intent into measurable outcomes,” the CCC said.

The other areas requiring urgent attention, according to the CCC, include strengthening tax administration to widen the tax net and improving compliance as well as enhancing public sector efficiency to support the SOE restructuring, trade facilitation and digital government reforms.

The CCC also noted that investor confidence could have been further boosted through targeted investment incentives, given Sri Lanka’s potential as a strategic global supply chain partner. It called for clarity on the future of the Economic Transformation Act, fast-tracking of the SOE and PPP-related legislation and alignment of reforms under the B-Ready Index to secure the 7 percent growth target outlined in the budget.