📉 Education Budget 2026: 2% of GDP Reality vs. 6% Goal

• The 2026 Budget allocates Rs. 704 Bn for education, representing 2.0% of the projected GDP, which is the second-highest allocation. • This is nowhere near the widely cited goal of 6% of GDP for education. • Financial Constraint: The allocation is likely to remain at ~2.0% of GDP until at least 2028. This is due to the Public Financial Management Act mandate requiring Sri Lanka's Primary Expenditure to stay under 13.0% of GDP to maintain solvency and meet debt obligations. • The current financial environment makes increasing the allocation to 6% or even 3% impossible in the near term, as it would take funds from other vital sectors. • Underlying Issue: The underfunding is linked to Sri Lanka's historically low Government tax revenue, which averaged only 12.3% of GDP between 2013-2022, placing the country among the ten lowest globally. • Focus Shift: The analysis suggests the way forward is through "smarter spending" and "low-input-high-impact policy options," focusing on governance, restructuring central authorities, and simplifying curricula, rather than solely on increasing budget inputs. • Critical issues, such as the lack of science stream facilities in two-thirds of senior secondary schools, remain unaddressed by the current allocation.