SL Budget 2026: Stability is the Game Changer 📈

• Ceylon Chamber Chief Krishan Balendra hailed Budget 2026 as a continuation of post-crisis fiscal discipline and stability, which could usher in a new era of low inflation and renewed investor confidence. • Macroeconomic Turnaround: The economy is showing strong signs of recovery with low inflation, low interest rates, strong revenue growth, a reduced fiscal deficit, and a current account surplus. • Reforms & Confidence: • Most State-Owned Enterprises (SOEs) are now breaking even or posting profits, demonstrating improved fiscal management. • Central Bank’s legal independence is expected to sustain low inflation/rates, boosting investor confidence. • A tangible sign of stability: Commercial banks are beginning to offer 10-year fixed-rate mortgages (previously unheard of). • Next Phase Urgency: Balendra stresses the need for an export-focused reform phase. Policy work must identify and scale one or two manufacturing sectors where Sri Lanka has a clear comparative advantage. • Existing FE Earners: Optimism remains high for current foreign exchange earning sectors like ports, logistics, tourism, and IT-enabled services.