President Anura Kumara Dissanayake has announced plans to significantly increase development spending while reducing recurrent expenditure, with capital allocation set to rise by approximately 40% in the coming year.

President Anura Kumara Dissanayake has outlined a fiscal strategy centered on redirecting public resources toward development projects rather than operational expenses. Speaking at a Galle District coordination meeting, the President emphasized the government's commitment to rebalancing its budget priorities in favor of long-term growth initiatives.

Under the proposed economic framework for 2027, the administration intends to allocate Rs. 2 trillion toward capital expenditure, marking an estimated increase of roughly 40% compared to current levels. The President stated that capital spending, which presently represents 4% of the budget, will be substantially expanded to support infrastructure and development projects across the country.

Simultaneously, the government aims to reduce recurrent expenditure, which currently comprises 9% of spending. According to the President, this reduction in operational costs is necessary to free up resources for productive investment. The administration views this reallocation as essential for achieving broader economic development objectives and improving the country's long-term prosperity.