## Treasury Accelerates Reform Agenda for 2026 📈

Treasury Secretary Dr. Harshana Suriyapperuma has announced a major legislative push to strengthen fiscal discipline and investor confidence, with over 20 new laws under review to be implemented this year. • Legislative Overhaul: Key focus on the State-Owned Enterprises (SOE) Act, new insolvency laws for business restructuring, and anti-corruption measures to prevent revenue leakages. • Financial Stability: The Treasury has settled Rs. 45 Bn in long-standing outstanding obligations to banks, contributing to a decline in non-performing loans (NPLs). • SME Support: A Rs. 95 Mn allocation for 2026 is being channeled via the banking sector, with Rs. 7 Mn already disbursed as collateral-free loans to young and women entrepreneurs. • Debt & Ratings: Risk premiums on International Sovereign Bonds (ISBs) and domestic Treasury Bills are declining. The government aims for credit rating improvements to regain access to lower-cost international capital. • Growth & Trade: Target medium-term GDP growth is set at 7%. The government is actively pursuing new Free Trade Agreements (FTAs) to leverage Sri Lanka’s maritime hub potential. • Fiscal Discipline: The 2026 Budget was presented without any additional borrowing, reflecting a shift toward structural revenue increases and zero tolerance for corruption. _Source: Treasury Secretariat (Provisional Data)_ ---