The Ceylon Chamber of Commerce has welcomed the broad direction of Sri Lanka’s Budget 2027, describing it as a step towards economic transformation while stressing that timely implementation will determine whether its policy commitments translate into investment, export growth and improved competitiveness.
In a statement, the Chamber said the Budget maintained policy continuity, macroeconomic stability and fiscal discipline, providing greater certainty for businesses and investors as Sri Lanka seeks to move beyond economic stabilisation towards sustained, investment-led growth. It identified several measures aimed at strengthening competitiveness and external sector resilience, while noting that greater attention could have been given to sectors with significant growth potential.
The Chamber particularly welcomed the continuity between the 2026 and 2027 Budgets, noting that structural reforms introduced in the previous year had been carried forward and strengthened. These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the introduction of the Digital ID framework, and efforts to expand market access through new Free Trade Agreements.
Other measures highlighted by the Chamber include strengthening one-stop-shop mechanisms for investment facilitation, advancing Customs reforms, expanding Bandaranaike International Airport, increasing financing support for small and medium-sized enterprises, and reforming the management of State-Owned Enterprises.
The business organisation also disclosed that more than 20 proposals it had submitted were reflected in Budget 2027. Among them are the establishment of a professionally managed investment promotion agency, improvements to trade facilitation and export competitiveness, and the Government’s consideration of a successor programme with the International Monetary Fund.
The Chamber also identified progress on key legislative reforms, the expansion of digital government services, and measures to promote cashless payments and wider digital adoption as areas where its recommendations had been incorporated.
Energy security was another area in which the Budget reflected proposals put forward by the Chamber. These include accelerating the deployment of Battery Energy Storage Systems (BESS) and investing in fuel storage infrastructure. Other included priorities relate to making better use of underutilised agricultural land, supporting the expansion of the digital economy and the information technology and business process outsourcing (IT/BPO) sector, and introducing tax measures to support exporters.
In particular, the Chamber welcomed the acceptance of newly VAT-registered exporters as eligible exporters, describing the inclusion of these priorities as evidence of sustained public-private dialogue and closer alignment between national policy objectives and the requirements of a competitive, export-oriented economy.
However, the Chamber said the Budget could have placed greater emphasis on several areas critical to strengthening Sri Lanka’s growth prospects. It called for a stronger focus on attracting foreign direct investment (FDI), alongside faster reforms in factor markets, particularly land and labour.
It also identified public procurement reform as an area requiring urgent attention, arguing that faster progress would improve the efficiency and speed of project implementation. The Chamber said more targeted and actionable proposals could have been introduced to unlock growth opportunities in tourism, agriculture, IT/BPO and logistics.
The Chamber described Budget 2027 as an important step in advancing economic transformation, building on existing reforms and incorporating recommendations from the private sector. It said the immediate priority should be effective and timely implementation, with the objective of converting policy commitments into investment, stronger competitiveness, higher exports and sustainable economic growth.
It said it remained ready to work with the Government and other stakeholders, where possible, to support the implementation of the proposed initiatives.
