SLAITO welcomes Budget '26 infrastructure; ADB approves $100M for Fiscal Reforms 📈

• The Tourism sector, via SLAITO, welcomed the Budget 2026 focus on infrastructure, including plans to upgrade domestic airports (Sigiriya, Trincomalee, Hingurakgoda - Rs. 1 Bn allocation) and resume expansion of the Bandaranaike International Airport (BIA). • KEY CAVEAT: SLAITO President Nalin Jayasundera stressed that infrastructure development alone cannot sustain tourism; it requires a robust, consistent global marketing strategy to attract year-round visitors and meet the ambitious 2030 targets of 4 million visitors and US$ 8 Bn in annual earnings. • Tourism Allocations: Rs. 3.5 Bn for destination development (nature/heritage), Rs. 2.5 Bn for Beira Lake redevelopment, and plans to redevelop 900+ State-owned resorts with private sector collaboration. • The reduction in the VAT threshold from Rs. 60 Mn to Rs. 36 Mn (effective Apr 1, 2026) was welcomed as a move to discourage companies from splitting operations to avoid taxes. • ADB Financing: Asian Development Bank (ADB) approved a US$ 100 Mn financing package to strengthen fiscal resilience, improve public expenditure management, and enhance revenue mobilisation. • The ADB funds will support key reforms, including developing a legal framework for Public-Private Partnerships (PPP), creating a comprehensive Fiscal Risk Statement, and introducing a climate finance strategy.