Budget 2026 Focus: Stimulus, Exports & Investments 📈

• President AKD will present Budget 2026 today, aiming to reignite economic growth via fresh stimulus, focusing on boosting investments and exports for job creation. • Analysts stress the phase of natural recovery post-contraction is over, necessitating fresh impetus and crucial reforms (e.g., ease of doing business). • Realized Foreign Direct Investment (FDI) saw a strong surge, increasing 138% Year-on-Year (YoY) to US$ 827 million up to September. • Government revenue remains robust: IRD collected Rs. 1.64 Trillion, exceeding the 9-month target (102%). Customs collected Rs. 2.0 Trillion by end-October, on track to surpass its annual target. • The Budget is expected to announce incentives for investments and potential tax relief for middle-income segments. • The disbursement of the sixth IMF tranche (US$ 347 million) hinges on the Budget 2026 successfully meeting program requirements. • Market sentiment is bullish, with the Colombo stock market surging past the 23,100-points mark ahead of the presentation.