President signals public transport pivot in 2027 Budget to ease household costs

President Anura Kumara Dissanayake has signalled that improving Sri Lanka’s public transport system will be a key priority in the 2027 Budget, positioning investment in affordable and accessible mobility as both a social policy and an economic measure aimed at reducing household costs and improving productivity. At a pre-Budget review of the Transport, Highways and Urban Development Ministry yesterday, the President said Sri Lanka must develop “a quality and accessible public transport system that benefits every individual,” arguing that an efficient network would reduce the financial burden of daily commuting while providing reliable transport services across the country. In a notable policy comparison, the President said the development of public transport should receive the same level of attention afforded to Sri Lanka’s free healthcare system, underscoring the Government’s intention to elevate transport infrastructure as a core public service rather than merely a capital expenditure program. The meeting reviewed the progress of projects implemented under the 2026 Budget and considered funding priorities for next year’s Budget across the transport, highways, and urban development sectors. Among the initiatives discussed was a program to gradually retire ageing buses and introduce new vehicles into the national fleet. The President said replacing older buses with better-equipped vehicles, including metro buses for short-distance urban services, would improve passenger comfort and service quality. Beyond transport, discussions also covered apartment construction projects, urban waste management programs, and initiatives under the Government’s City Branding program, with officials reviewing projects that could be completed and commissioned this year. Reflecting a stronger emphasis on public investment discipline, President Dissanayake instructed officials to identify projects that could realistically be completed within the next year, prioritise them accordingly, and align Budget allocations with those priorities. He also directed that projects financed through foreign loans should not receive approval unless there is a clear understanding of their intended outcomes, signalling a greater focus on project evaluation and value for money amid continued reliance on external financing for infrastructure development.

President signals public transport pivot in 2027 Budget to ease household costs | Daily FT