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Sri Lanka plans 2 trln rupees in capital spending in 2027, public sector salary likely to rise

Source: Xinhua

Editor: huaxia

2026-06-14 22:15:15

COLOMBO, June 14 (Xinhua) -- Sri Lanka plans to allocate 2 trillion rupees (about 6.6 billion U.S. dollars) for capital expenditure in the 2027 budget, Health and Mass Media Minister Nalinda Jayatissa said on Saturday.

The government has allocated about 1.35 trillion rupees for capital spending this year, Jayatissa said at the launch of road development work in Kalutara district under the Integrated Road Investment Program, known as iRoad.

The projects will upgrade 14 roads in the district, said the minister. He added that higher state revenue, exports, remittances and tourism earnings had allowed the government to accelerate development projects.

Also regarding national financial plans in 2027, Minister of Agriculture, Livestock, Land and Irrigation Lal Kantha said the country is expected to increase public sector salaries again next year as part of government efforts to improve living conditions.

The minister noted that the government had taken steps to ease economic pressure on the public and strengthen household incomes.

Previously, the government introduced significant salary increases for public sector workers in 2025, increasing the minimum basic monthly salary from 24,250 rupees to 40,000 rupees.

Base pay scales for public servants also increased by between 24 percent and more than 50 percent, depending on service category and grade, according to official figures.