Appropriation Bill 2026: Overall Summary and Ministry Allocations

Abstract

The Appropriation Bill for 2026 sets government expenditure (excluding capital repayments) at LKR 7,128 billion. For 2026, the First Schedule allocates LKR 4,434 billion for non-debt-servicing: LKR 3,028 billion for recurrent costs and LKR 1,406 billion for capital spending. The Second Schedule primarily comprising debt service payments processed through the Department of Treasury Operations - allocates LKR 2,615 billion for interest, LKR 1,406 billion for capital repayments, and an additional LKR 78 billion for recurrent expenses of other government agencies. Compared with 2025, total expenditure in 2026 decreases by 1.6%. The decline is mainly driven by lower interest costs, which drop from LKR 2,945 billion in 2025 to LKR 2,615 billion in 2026. Conversely, capital spending increases from LKR 1,320 billion to LKR 1,406 billion (up 6.5%), while other recurrent expenditure rises from LKR 2,975 billion to LKR 3,107 billion (up 4.4%). The largest allocation in the 2026 Appropriation Bill is to the Ministry of Finance, Planning and Economic Development: LKR 635 billion, a decrease of 7.5% from LKR 661 billion in 2025. This contrasts with most other ministries, which increased or remained steady