Spending Capped at 13% of GDP Under IMF Agreement, Says President

07-Jan-2026

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President Anura Kumara Dissanayake stated that under the Extended Fund Facility agreement with the International Monetary Fund, government expenditure is limited to 13 percent of national output, with a minimum of 4 percent allocated for capital expenditure.

Accordingly, budgetary allocations to ministries have been made based on prioritizing essential national needs. The President stressed that it is the responsibility of ministry secretaries and public officials to identify national priorities and utilize allocated funds efficiently for public benefit within existing fiscal constraints.

Speaking at a meeting with ministry secretaries held at the Presidential Secretariat on Jan 5, the President noted that past failures in effectively utilizing capital expenditure had caused the country to lose numerous development opportunities.

The 2026 Budget has allocated Rs. 1,400 billion for capital expenditure, with an additional Rs. 500 billion earmarked for repairs related to damage caused by Cyclone Dithya.

Senior officials from the Ministry of Finance, Presidential Secretary Dr. Nandika Sanath Kumanayake, and all ministry secretaries were present at the meeting.