Revenue growth expected to slow down in 2026 due to decline in vehicle imports - Draft Report on Appropriation Bill

The draft report prepared in accordance with Standing Order 121(5)(i) of Parliament regarding the Appropriation Bill for the Financial Year 2026 was considered at the meeting of the Committee on Public Finance (COPF).

This discussion took place recently (11) in Parliament, under the chairmanship of Member of Parliament Dr. Harsha de Silva, according to a statement issued by the Department of Communication of Parliament.

The report had been prepared by the technical team of the Committee on Public Finance and presented to the Committee for consideration.

According to the report, the Appropriation Bill for the Financial Year 2026 has been prepared in line with the requirements stipulated under the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and the International Monetary Fund (IMF) program.

It further notes that revenue in 2025 exceeded expectations by Rs. 100 billion due to higher-than-expected income from vehicle import taxes, thereby providing greater ease in preparing financial plans for 2026. 

However, it is also expected that revenue growth in 2026 will slow down due to a decline in vehicle imports. The report is scheduled to be presented to Parliament, the statement added.

Subsequently, discussions were also held with representatives of civil organizations regarding the Appropriation Bill for 2026. During these discussions, the representatives presented their views on the transparency of the budget, the allocation of funds among various sectors, the issues currently identified, and their related proposals.

The Chairman stated that these views and proposals will be referred to the Ministry of Finance for necessary action.

Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, and Members of Parliament Ravi Karunanayake, Ajith Agalakada, Attorney-at-Law Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Thilina Samarakoon, and Attorney-at-Law Lakmali Hemachandra, were present at this committee meeting.