Tax Concessions to Be Granted in Budget: President Anura Assures
01-Nov-2026.
President Anura Kumara Dissanayake has stated that the Government has not introduced any new taxes since assuming office and has substantially reduced certain taxes that were already in force.
He assured that further tax reductions would be introduced in the 2027 Budget without affecting the Government's revenue targets.
The President made these remarks while addressing the National Convention of the National Intellectuals Organisation held at the P.D. Sirisena Grounds in Maligawatte, Colombo, on 31 October 2026.
Speaking further, he said:
"In the past, Governments were unable to generate the full amount of revenue projected in their Budgets. When revenue of Rs. 100 was expected, the actual collection was only around Rs. 90.
"As a result, Budget documents had become mere formalities presented as part of the administrative process. However, in 2025, we were able to generate revenue exceeding the amount originally projected. We achieved this without introducing new taxes and while reducing certain existing taxes. We will reduce some more taxes in the forthcoming Budget, without affecting the Government's revenue targets.
"Economic growth should not merely be reflected in statistical improvements. The benefits of economic growth must reach all people, irrespective of whether they live in rural or urban areas. We must establish an economic structure that enables the country to make its economic decisions independently while ensuring that the benefits are distributed fairly among the most disadvantaged sections of society. That is what genuine economic transformation means.
"At the same time, every citizen must have confidence that a person who commits an offence will be punished and an innocent person will be acquitted. Social stability cannot be achieved if people believe that the law is applied differently to certain individuals and differently to others. No one should be exempt from the law on account of being a politician or a person holding power.
"The 1978 Constitution contains a strong chapter on fundamental rights. However, these rights must also be respected in everyday life. No one should have to live in fear or insecurity on the basis of their religious, linguistic or cultural identity. A society built on confidence and security can be established only by upholding the rule of law.
"The President also referred to measures being taken against drug trafficking, underworld criminal activities and corruption. He said action had been taken to eliminate corruption and irregularities within State institutions and ensure transparency in sectors such as Customs, Immigration and vehicle registration.
"The value of the narcotics seized amounts to approximately Rs. 220 billion. A financial transaction fraud involving approximately US$1 billion has also been uncovered in connection with import activities.
"In the past, those who came to power used their authority to grant privileges to their friends and relatives. Some plundered the Central Bank within just a few months of assuming office. The value of tax concessions granted to their supporters amounted to several hundred billion rupees.
"We have also witnessed systems of governance in which the law and the judiciary were manipulated for political purposes. This country has even experienced the horrific incident of water being administered to cancer patients instead of the medicines they were supposed to receive. We have changed such unethical and deplorable systems of governance.
"A politician is not superior to the people. As an elected representative, a politician is an ordinary person whose responsibility is to serve the public. We have also abolished unnecessary privileges granted to former Presidents.
"Former political groups, unable to come to terms with change, are engaging in false propaganda and disruptive activities. One individual has claimed that the National People's Power Government is planning to bury the Ruwanwelisaya Stupa.
"Those making such false allegations should actually split the ground and disappear into it. Unable to accept change, they have become so confused that they no longer know what to say or how to respond. Their statements have turned into hate speech, while their conduct has become increasingly disruptive.
"What kind of mindset would prompt someone to drive a thorn into a clay effigy? What sort of mentality has developed for someone to imagine that driving a thorn into such an effigy would cause pain to them personally? At one time, they drive a thorn into a clay figure; at another, they carry a snake staff. There is no clear plan or objective behind such actions. They are merely manifestations of an inability to accept change," he said.
