Sri Lanka bets on investor protection and infrastructure push in 2026 Budget

The government is set to anchor its 2026 budget on a decisive pivot from economic stabilisation to aggressive, investment-led growth, with a strong emphasis on creating a secure and predictable environment for foreign and local capital, according to a Bloomberg report.

As the nation charts its path beyond a severe economic crisis, officials are making it clear that bolstering investor confidence is the top priority.  The budget, which will be presented to parliament on November 7th, is being designed to signal that Sri Lanka is open for business and serious about protecting investments.

A cornerstone of this strategy is the enactment of robust investor protection policies and laws. This move is expected to provide explicit guarantees for the fair and equitable treatment of all investors, offer strong safeguards against unreasonable asset expropriation, and establish clear mechanisms for swift dispute resolution. This legal overhaul is intended to address longstanding concerns and provide the predictability that international investors demand.

President Anura Kumara Dissanayake has reinforced this message, stating that the 2026 budget will also focus relentlessly on reducing waste and corruption while modernising the state sector. This commitment to good governance is being framed as essential to creating a transparent and trustworthy investment climate. As tangible proof of its renewed focus, the government is revitalising its stalled infrastructure ambitions. In a significant move, construction on the crucial Mirigama-Kadawatha section of the Central Expressway has resumed, revived by fresh funding from Chinese partners. This project is seen as a key indicator of the government’s ability to restart and execute large-scale ventures.

Beyond this flagship project, the government is expected to adopt  a multi-pronged approach to infrastructure development. Tenders are now being called for other expressway sections, and in particular local contractors have proposed Public-Private Partnerships (PPPs) to accelerate development across the country.

This infrastructure backbone will support targeted growth in key economic sectors. Deputy Minister for Economic Development, Anil Jayantha Fernando, confirmed that the government will actively seek private sector investments in high-potential areas like agriculture and tourism. In agriculture, the goal is modernisation and improved productivity to boost the rural economy.

In tourism, the strategy is to attract high-spending travellers, supported by airport upgrades and the development of new attractions through private investment.

“As the focus shifts from stability to growth, Sri Lanka’s 2026 budget will tilt toward policies that attract investments,” Fernando said.