LOLC strengthens Pakistan operations with new Islamabad Head Office

LOLC Microfinance Bank Pakistan, a fully owned subsidiary of the LOLC Group, has strategically relocated its Head Office to Gulberg Greens, Islamabad, marking a milestone in its growth journey.

As one of the LOLC Group’s largest overseas operations in Asia, the bank continues to advance financial inclusion and sustainable economic development across Pakistan.

The new Head Office was formally inaugurated in the presence of Chief Guests High Commissioner of Sri Lanka to Pakistan Admiral (Retd.) Fred Seneviratne, and LOLC Microfinance Bank Pakistan Chairman Krishan Thilakaratne.

The ceremony was attended by the bank’s Board of Directors, senior management and employees, commemorating another important chapter in the bank’s continued expansion.

LOLC Microfinance Bank Pakistan is a fully-fledged microfinance bank regulated by the State Bank of Pakistan, operating through a network of 88 branches and employing over 1,200 staff members across the key cities of Karachi, Lahore, Hyderabad, Faisalabad, Sialkot, Islamabad, Peshawar and Gilgit.

The bank offers a comprehensive range of financial solutions, including business loans, microfinance, vehicle financing, gold loans and other financial products. It currently manages a loan portfolio exceeding $ 70 million and a deposit portfolio exceeding $ 90 million, comprising savings deposits, term deposits and current accounts.

The relocation to the new Head Office reflects the bank’s expanding operations and its commitment to widening access to responsible financial services for individuals, micro-entrepreneurs and small businesses across Pakistan. In 2026, LOLC Microfinance Bank Pakistan was recognised as Pakistan’s fastest growing microfinance bank, highlighting its strong business momentum and growing market presence.

Addressing the gathering, Admiral (Retd.) Seneviratne (Retd.) said: ‘The relationship between Sri Lanka and Pakistan continues to grow through meaningful partnerships such as this. LOLC Microfinance Bank Pakistan is making an important contribution by supporting entrepreneurs, strengthening the SME sector, and expanding financial access where it is needed the most. Institutions like these play a vital role in empowering communities and supporting sustainable economic growth.’

Thilakaratne added: ‘Today’s achievement represents only a small part of what the LOLC Group envisions for Pakistan. Sri Lanka and Pakistan share a longstanding and valued relationship, and we are proud to strengthen that bond through sustainable investment. Having successfully transformed the microfinance model across 20 countries, the LOLC Group believes Pakistan offers tremendous opportunities to expand access to finance, particularly for micro-enterprises and SMEs. Financial inclusion remains one of the most effective tools for poverty alleviation, and we are committed to extending our reach to communities that need it most.’

LOLC Holdings PLC is Sri Lanka’s largest and most diversified multinational conglomerate, with operations spanning three continents, 27 countries and nine sectors. Through its position as the world’s largest MSME platform, the group continues to promote sustainable economic development by empowering entrepreneurs and underserved communities while expanding access to inclusive financial services across emerging markets. As LOLC continues to expand its international footprint, this investment underscores the Group’s enduring commitment to building inclusive financial ecosystems, extending access to finance and creating lasting economic value through responsible and sustainable investment.

Cash still king: SLIIT Business School study exposes Sri Lanka’s digital trust gap

As Sri Lanka’s digital economy expands, online shopping has become part of everyday life. Yet, despite growing internet use and the convenience of e-commerce platforms, many consumers still hesitate to fully trust digital transactions. For a large share of Sri Lankan shoppers, cash-on-delivery remains the safer option, revealing a critical trust gap that could shape the future growth of the country’s digital commerce sector.

This challenge formed the basis of a study conducted at SLIIT Business School by Prof. Ruwan Jayathilaka together with Isuri Udara, who completed the research as part of her MBA program. The study, titled ‘Security Matters: Empowering E-Commerce in Sri Lanka Through Customer Insights,’ was published in Humanities and Social Sciences Communications, a globally recognised journal published by Springer Nature and ranked among the top 1% of journals in the Scopus database within its subject category.

The research examined the factors that influence customer perceptions of security on e-commerce platforms in Sri Lanka. Drawing on data collected from online shoppers through both online and offline surveys, the study used advanced econometric analysis to identify what drives or weakens consumer confidence in digital platforms. The findings show that trust in e-commerce is shaped by more than discounts, convenience or brand visibility. Platform quality, vendor system security, website

reliability, payment authentication, privacy protection, security certificates, page loading speed and overall user experience were found to be among the strongest factors influencing customer confidence.

According to the study, many Sri Lankan consumers remain cautious about online payments due to concerns over misuse of financial information, weak data protection, fake products, delayed refunds, payment failures and the storage of card details. These concerns have strengthened the continued preference for cash-on-delivery, even as consumers increasingly browse, compare and purchase through digital platforms.

‘Digital businesses cannot survive without customer trust,’ said Prof. Jayathilaka. ‘People may visit an online platform once, but if they feel insecure about payments, privacy, or system reliability, they will not return. Understanding customer perceptions is therefore critical for the long-term sustainability of e-commerce businesses.’

For businesses, the study presents a clear message: digital trust is no longer only a technology issue. It is a business priority. E-commerce platforms, online retailers, fintech providers and digital startups must invest in secure payment systems, transparent privacy practices, reliable customer communication, stronger authentication and better platform performance if they are to retain customers over the long term.

‘Many companies focus heavily on sales promotions and digital marketing,’ added Prof.Jayathilaka. ‘But customers ultimately stay loyal to platforms they trust. Security, transparency, privacy, and system quality have become business priorities, not just technical features.’

The study also points to the need for stronger collaboration between businesses, universities and policymakers to build a more trusted digital ecosystem. It recommends stronger implementation of data protection frameworks, updated consumer protection regulations, regular monitoring of e-commerce platforms and greater public awareness of digital safety practices.

Through this research, SLIIT Business School highlights the role of applied academic research in addressing real industry challenges. As Sri Lanka’s digital economy continues to evolve, the study reinforces a simple but urgent message: without trust, digital growth cannot be sustainable.

Raising the bar: Clinical governance, transparency and innovation in Sri Lanka’s private healthcare sector

Sri Lanka’s ublic healthcare system carries an enormous load. Hospitals are stretched, waiting lists are long, and the demand for specialist care continues to grow. It is within this reality that private healthcare has stepped into a role far greater than many give it credit for. The Association of Private Hospitals and Nursing Homes has long maintained that the sector’s contribution is not simply one of convenience for those who can afford it, but a genuine and structured complement to the national health system. That argument rests on four pillars: clinical governance, transparency, system impact, and innovation.

Governance at core of everything we do

Clinical governance, at its core, is about accountability. According to Western Hospital Kidney Transplant Coordination Centre Transplant Physician and Director Dr. Habeeba Sheriff it is “the … framework through which healthcare organisations guarantee that patients receive safe, effective, and high-quality care.” The emphasis, as Dr. Sheriff is quick to point out, must always remain on the patient.

In practice, that means hospitals operating on par with internationally recognised benchmarks. Frameworks such as Joint Commission International Accreditation (JCIA), Australian Council on Health Care Standards (ACHSI) and ISO standards define how every department functions, from surgical theatres and pharmacy operations to infection control and waste management. Hospitals are assessed regularly and must demonstrate compliance to maintain accreditation.

Quality, patient safety and performance are also tracked through more than 50 measurable indicators such as infection rates, surgical complication rates, readmission figures, medication management and long-term patient outcomes. Dr. Sheriff points to a telling example from her own unit. When an unexpected rise in creatinine levels was observed across several transplant patients, the team did not treat each case in isolation. The team observed the patterns and the investigation traced the problem to a medication batch, and its handling process following which, the Companies were promptly alerted. This example demonstrates one of the core principles of clinical governance: using data, vigilance, and system-wide communication to improve patient safety.

Informed consent is another cornerstone of clinical governance. ‘Before any complex procedure, particularly something as high-stakes as kidney transplantation, patients need to understand not just what will happen, but why, what the risks are, and what alternatives exist. Family members are brought into those conversations too, because recovery does not end in the operating theatre’ Dr. Sheriff further explained. Successful governance depends on maintaining a sharp focus on patients while continuously reviewing systems, outcomes, and practices. When implemented effectively, clinical governance not only protects patients but also creates a culture of excellence that benefits entire healthcare organisations.

Building trust through visible transparency

Public confidence in healthcare depends heavily on transparency. Voicing his opinion, Durdans Hospital CEO/Director Medical Services Dr. Lasantha Karunasekara presents a strong argument that transparency in the private sector is more tangible than most people assume in terms of pricing, patient care and open communication. Patients have access to detailed information regarding room charges, nursing fees, medication costs, procedure-related expenses and diagnostic charges. Contrary to popular belief, healthcare providers increasingly offer itemised billing that allows patients to understand precisely how costs are calculated. Package-based pricing for common procedures further improves predictability and enables patients to make informed decisions. Further access to consultants and matters related to patient treatment, and care pathways are frequently and transparently discussed and available for loved ones to ease their anxiety and address concerns.

Patient complaints and adverse incidents are systematically reviewed through formal governance structures. ‘When things go wrong, the response matters just as much as the disclosure. Patient complaints and adverse incidents are reviewed through formal multidisciplinary governance structures, not quietly filed away. It is imperative to transform patient feedback and clinical incidents into opportunities for organisational learning and continuous improvement,’ Dr. Karunasekara added.

Addressing a real dent in the system

The impact of private healthcare on national health outcomes is tangible, even if it does not always make headlines. Dr. Karunasekara describes it as a sector that has expanded well beyond hospital admissions. ‘A substantial proportion of outpatient healthcare services are delivered through private healthcare providers,’ he notes, through direct consultant channeling, and OPD medical officers. Significant efforts and resources are focused on primary care for early detections, treatments and preventions of NCDs in the country by rolling out health screening programs, corporate wellness initiatives, and routine assessments that catch problems early and reduce pressure on acute services.

Access to specialists remains one of the most stubborn challenges in any healthcare system. Private hospitals have addressed this in part through regional centres, laboratory networks, satellite clinics and channelling facilities, bringing care closer to patients and cutting waiting times for consultations and diagnostics. Structured healthcare packages and discounted programmes have extended these services to broader segments of the population, including public sector employees. The goal, as Dr. Karunasekara puts it, is ‘not only to improve convenience but also to ensure that patients receive necessary care before delays lead to worsening health outcomes.’

Innovation as standard practice

Some of Sri Lanka’s most advanced diagnostic technology has come through private sector investment. Advanced imaging systems, high-end laboratory diagnostics, cancer detection technologies and specialised radiological services now allow for earlier, more precise diagnoses that simply were not possible a decade ago for which the Government would not have had the necessary resources or institutional capacity to adequately respond, thereby placing an additional strain on an already overstretched healthcare system and budget.

The shift toward digital healthcare has also been driven, in large part, by private healthcare providers. Electronic health records, patient portals, hospital management systems and digital laboratory reporting have changed how care is coordinated and how patients interact with their own health information. Artificial intelligence is entering the picture too, supporting data analysis, imaging interpretation and predictive risk assessment. Dr. Karunasekara is measured about what that means in practice: ‘AI should be viewed as a clinical support tool rather than a replacement for healthcare professionals.’ Final decisions, he insists, remain with the physician.

The road ahead

What ties all of this together is a commitment to standards that does not waver when the pressure is on. As Dr. Sheriff puts it, ‘effective governance requires continuous auditing, data analysis, open communication, multidisciplinary collaboration, and adherence to standards and commitment to patient safety.’ That is not a one-time exercise. It is an ongoing discipline.

For the private sector to hold the public’s trust, it must also hold itself to account. Stronger collaboration with public healthcare, sustained investment in technology, clinical governance and a culture of genuine transparency are not aspirations. They are requirements. The case for private healthcare’s role in Sri Lanka’s health system has never been stronger. The responsibility now is to keep earning it.

Seminar on Beneficial Ownership Compliance under the Companies Act, No. 12 of 2025

Corporate Management Consultants, under the leadership of Mohamed Malik Rizvi Abdul Cader, is organising a timely and practical seminar for Company Secretaries on the challenges encountered in complying with the Beneficial Ownership provisions introduced under the Companies Act, No. 12 of 2025.

Since the enactment of the new legislation, Company Secretaries have faced numerous practical and legal issues in interpreting and implementing the beneficial ownership requirements. This seminar has been specifically designed to address these challenges by providing practical guidance on compliance, regulatory expectations, and best practices.

The seminar will feature an eminent panel of speakers with extensive expertise in company law, regulation, and corporate governance:

Heritage Partners Precedent Partner Dr. Arittha Wikramanayake, will deliver the keynote address on the legal framework governing beneficial ownership and the practical issues encountered in ensuring compliance.

LOLC General Insurance PLC Chairman Kithsiri Gunawardene, a legal professional and Head of the Company Secretarial function of LOLC Holdings PLC, will discuss the practical concerns faced by Company Secretaries and share industry experiences and solutions.

Central Bank of Sri Lanka Financial Intelligence Unit (FIU) Director General Dr. Subhani Keerthiratne,

will present the FIU’s perspective on beneficial ownership reporting, transparency, and regulatory compliance.

Department of the Registrar of Companies’ Sunethra Dharmakeerthi will explain the role of the Registrar of Companies and the regulatory expectations relating to beneficial ownership filings.

Securities and Exchange Commission Former Director General and Attorney-at-Law Malik Cader, will moderate the discussion and share practical insights into corporate governance, compliance, and enforcement.

The seminar will provide participants with an excellent opportunity to engage directly with leading experts, clarify practical issues, and gain a comprehensive understanding of the legal and regulatory framework governing beneficial ownership in Sri Lanka. It is expected to be of significant value to Company Secretaries, Directors, Legal Officers, Compliance Officers, Chartered Accountants, Auditors, and other corporate professionals responsible for ensuring compliance with the Companies Act.

Music concert, 500-drone and light show to feature LPL opening

The Lanka Premier League 2026 is set to begin in spectacular fashion on 17 July at SSC grounds, with a grand opening ceremony designed to bring together cricket, entertainment, technology and national pride in one high-energy stadium experience.

The opening night will mark the start of the sixth edition of Sri Lanka’s domestic T20 tournament with international flavour and is expected to create one of the most memorable launch moments in the history of the LPL. With live performances, official ceremonial moments, team introductions, a grand trophy reveal and a landmark 500-drone show, the ceremony is being positioned as an experience cricket fans should not miss.

The evening will feature performances by some of Sri Lanka’s most recognized entertainment names, including Yohani, Sanka Dineth and Centigradz. Yohani is expected to bring international appeal to the LPL stage with her global hit ‘Manike Mage Hithe’, while Sanka Dineth and Centigradz will add further energy, familiarity and local flavour to the opening night.

A key highlight of the evening will be the official commencement of LPL 2026, with Lanka Premier League Tournament Director Samantha Dodanwela expected to formally declare the tournament open. This will be followed by a grand trophy reveal, one of the most anticipated moments of the ceremony, designed as a premium visual moment for fans inside the stadium and audiences watching across television and digital platforms.

The ceremony will also include team introductions, giving fans the opportunity to welcome the five competing franchises as they begin their campaigns for the 2026 season. The segment is expected to bring colour, energy and franchise pride to the stadium, building excitement ahead of the first match of the tournament.

To elevate the spectacle further, a 500-drone light show will light up the Colombo sky with LPL branding, cricket visuals, national pride and team-inspired formations. The drone show is expected to create strong audience impact and memorable visual moments, while giving LPL 2026 the feel of a major global sporting event.

Commenting on the opening ceremony, IPG Founder and Chairman Anil Mohan said, ‘LPL 2026 is being designed as more than a cricket tournament. It is a complete fan experience. The opening ceremony on 17 July will bring together sport, entertainment and technology in a way that celebrates Sri Lanka and gives fans a powerful reason to be part of the first night. We want the opening ceremony to set the tone for a season filled with energy, excitement and world-class cricket.’

Lanka Premier League Tournament Director Samantha Dodanwela said, ‘The opening ceremony is an important moment in every LPL season because it brings players, franchises and fans together before the cricket begins. This year’s ceremony has been planned to create a strong sense of occasion around the tournament, while celebrating the growing stature of the league. We look forward to welcoming fans to SSC Colombo for what promises to be a memorable start to LPL 2026.’

With the first match and opening ceremony taking place at the SSC, LPL 2026 will bring franchise cricket excitement to the heart of the city. Cricket lovers, families and franchise supporters are encouraged to secure their tickets early and be part of a landmark opening night that will combine the thrill of T20 cricket with a world-class entertainment experience. First match of the season is scheduled to start at 7.45 pm and the gates will open to the public by 5 pm. The opening ceremony will kick start at 6.15 pm.

The Lanka Premier League 2026 will run from 17 July to 8 August featuring five competitive franchises, leading Sri Lankan cricketers and international T20 talent.

BPPL to acquire Ravi Industries customer base in Rs. 300 m deal

BPPL Holdings PLC is expanding its industrial brushware business through the acquisition of the customer base, trademark rights and related intellectual property of Ravi Industries Ltd. (RIL), in a transaction carrying a minimum consideration of Rs. 300 million payable over five years.

The acquisition will be undertaken by BPPL’s wholly owned subsidiary, Beira Brush Ltd., under a Business Transfer Agreement (BTA) signed with Ravi Industries. The agreement covers the transfer of RIL’s customer base together with the right to use the ‘Ravi’ trademark and associated intellectual property.

Unlike a conventional upfront acquisition, the consideration will be settled through annual payments linked to revenue generated from the transferred customer base and trademarks over a five-year period. BPPL said the total consideration will not be less than Rs. 300 million.

The company said the transaction is expected to create operational synergies by integrating production and manufacturing for Ravi Industries’ customers into Beira Brush’s existing manufacturing facilities, enabling greater cost efficiencies.

BPPL also said the acquisition is expected to position Beira Brush among the largest manufacturers of industrial brushware in Asia.

The transaction was approved by the company’s Board of Directors on 10 July.

Prime Minister departs for Qatar to attend funeral of former Qatar Leader

Prime Minister Dr. Harini Amarasuriya departed Sri Lanka yesterday for the State of Qatar to undertake an official visit to attend the funeral ceremony of former Qatari Leader, the Father Amir Sheikh Hamad bin Khalifa Al Thani, and to convey the deepest condolences of the Government and the people of Sri Lanka.

During the visit, Dr. Amarasuriya will attend high-level official engagements with the leadership of the State of Qatar to convey Sri Lanka’s condolences and reaffirm the longstanding friendship and cooperation between the two countries.

Maga Engineering gets Rs. 5 b road contract and Rs. 2.4 b BIA terminal expansion project

The Cabinet of Ministers has approved the award of a Rs. 4.99 billion contract (excluding Value Added Tax) to M/s Maga Engineering Ltd., for the construction of the Warakapola bypass road under the National Highways Widening and Improvement Program.

The project covers the 2.32-kilometre stretch from 0+000 kilometre to 2+320 kilometre and is expected to be completed using funds allocated under the national program aimed at improving the country’s highway network.

‘The contract was awarded following a National Competitive Procurement process, under which six bids were received. Maga Engineering Ltd., emerged as the lowest substantially responsive bidder after an evaluation by the High-Level Procurement Committee,’ Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing yesterday.

The proposal to this effect was submitted by Transport, Highways and Urban Development Minister Bimal Rathnayake and the recommendations of the High-Level Procurement Committee.

The Cabinet also approved awarding the contract to expand the departure terminal at Bandaranaike International Airport (BIA) to Maga Engineering Ltd., for $ 7.26 million/Rs. 2.4 billion (excluding Value Added Tax) to boost passenger handling capacity at Sri Lanka’s main international gateway.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at yesterday’s post-Cabinet meeting media briefing, noting that the project will be financed through the General Treasury.

‘The money will come out of the General Treasury,’ he said.

On 9 February last year, the Cabinet approved the commencement of the procurement process for the construction of a new departure terminal building featuring 36 check-in counters and six aircraft boarding gates connected to the passenger terminal.

According to Dr. Jayatissa, bids were invited under an international competitive procurement process, attracting three submissions.

‘Following the evaluation of bids, the Standing High-Level Procurement Committee recommended awarding the contract to Maga Engineering Ltd., as the lowest substantially responsive bidder. Based on that recommendation, the Cabinet approved the proposal to award the contract to the company,’ he said.

The expansion is expected to improve passenger processing capacity and operational efficiency at BIA, which has experienced rising passenger volumes alongside Sri Lanka’s tourism recovery.

Positive Investor Interest at SEC and CSE Colombo Investor Forums

English Colombo Investor Forum panel discussion undertaken by (from left): CSE Executive Vice President – Marketing Niroshan Wijesundere, SEC Acting Director General Tushara Jayaratne, Unit Trust Association Vice President, First Capital Asset Management Director and CEO Kavin Karunamoorthy, HNB Stockbrokers Manager – Research Cheran de la Harpe, Central Bank of Sri Lanka Senior Economist Chathura Kulawardena, and Moderator and CSE Manager – Events Nishantha Batagalle

The Colombo Stock Exchange (CSE) in collaboration with the Securities and Exchange Commission of Sri Lanka (SEC) hosted the first of a new series of country-wide investor forums on the iconic CSE trading floor on 25 June and 9 July in Sinhala and English respectively.

The investor forums collectively attracted over 180 participants, with many first-time investors taking the opportunity to speak to members of the SEC, CSE, Unit Trust Associations and Stockbrokers from 5 p.m. onwards.

The forums opened with presentations from senior economists of the Central Bank of Sri Lanka, including Lasantha Wijerathne and Chathura Kulawardena, who provided a high-level overview of the country’s macroeconomic landscape. The session also featured presentations by members of leading stockbroking firms, including NDB Securities Ltd., Senior Research Analyst Tharaka Peiris and HNB Stockbrokers Ltd., Manager – Research Cheran de la Harpe who provided participants with an overview of the capital market. In addition, representatives from the unit trust industry, including the Lynear Wealth Management CEO and Head of Equity and Unit Trust Association Secretary Asanka Herath and Senfin Asset Management Ltd., Chief Investment Officer Surath Perera introduced participants to investing in unit trusts.

The presentations were followed by an interactive panel discussion featuring the speakers as well as Unit Trust Association Vice President, First Capital Asset Management Ltd., Director and CEO Kavin Karunamoorthy, SEC Acting Director General Tushara Jayaratne and CSE Executive Vice President – Marketing Niroshan Wijesundere.

Following the panel discussions attendees enjoyed the opportunity to meet with stockbrokers and unit trust associations to open new investment accounts. All new investors who opened an account on the days of the forum were entitled to receive an investment coupon.

The forum was conducted amidst a remarkable six-year growth in the capital market which saw the All-Share Price Index (ASPI) rise from 4,846 points in May 2020 to 22,310.80 points by the end of May 2026. This represents a growth of 360% and a compound annual growth rate (CAGR) of approximately 28.98% – with capital gains remaining tax-free prospective investors can be notified of through the CSE website and mobile app.

2027 Budget to cap primary spending at Rs. 5.1 t as deficit narrows from 2026 peak

The Government has set a primary expenditure ceiling of Rs. 5.064 trillion, or 12.9% of GDP, for the 2027 Budget while projecting the overall Budget deficit to narrow to 4.5% of GDP next year from an estimated 5.6% in 2026, according to the Fiscal Strategy Statement (FSS) 2027.

The statement positions the statutory primary expenditure ceiling as the Government’s principal fiscal anchor, limiting primary spending to below 13% of GDP during the first five years of the medium-term fiscal framework in support of debt reduction and fiscal sustainability.

For 2027, the ceiling has been fixed at 12.9% of GDP, equivalent to Rs. 5.064 trillion, consistent with a primary surplus target of 2.6% of GDP and total revenue and grants of 15.5% of GDP. The indicative ceiling remains unchanged at 12.9% of GDP through 2031, with annual revisions to be made through future Fiscal Strategy Statement updates.

The FSS projects the overall Budget deficit to remain below 5% of GDP from 2027 onwards, following the temporary widening to an estimated 5.6% of GDP in 2026. The deficit is projected at 4.5% of GDP in 2027, before narrowing further to 4.3% in 2028, 4% in 2029, 3.8% in 2030 and 3.5% in 2031.

The FSS said the exceptionally low Budget deficit of 2.3% of GDP recorded in 2025 reflected stronger Government revenue, containment of recurrent expenditure and lower-than-planned execution of capital expenditure.

Revenue and grants are projected at 15.5% of GDP from 2027 through 2031, comprising total revenue of 15.4% of GDP, including tax revenue of 14.2% of GDP and non-tax revenue of 1.2% of GDP, together with grants of 0.1% of GDP. Total expenditure is projected to decline from 20% of GDP in 2027 to 19% by 2031, reflecting continued expenditure rationalisation.

Within the overall expenditure envelope, capital expenditure and net lending, which includes public investment, is projected at 4.4% of GDP from 2027 onwards, in line with the Government’s policy of maintaining public investment above 4% of GDP to support infrastructure development and long-term productivity.

The FSS also projects a primary surplus of 2.6% of GDP from 2027 through 2031, following an estimated surplus of 2.1% in 2026. The Government described the record 5.4% primary surplus achieved in 2025 as evidence of the importance of maintaining sustained primary surpluses to restore fiscal sustainability, reduce debt and rebuild fiscal buffers.

Nominal GDP is projected to increase from Rs. 36.0 trillion in 2026 to Rs. 39.3 trillion in 2027 and Rs. 55.4 trillion by 2031. Real GDP growth is forecast at 4.2% in 2027 before easing to around 4% over the remainder of the projection period, while nominal GDP growth is projected to remain at 9% annually.

The Fiscal Strategy Statement also reiterates the Government’s objective of reducing public debt to below 95% of GDP by 2032. Under the baseline scenario, public debt is projected to decline to around 91% of GDP by 2030, achieving the target ahead of schedule.

The Government said maintaining revenue above 15% of GDP, keeping primary expenditure below the statutory ceiling, sustaining primary surpluses and maintaining public investment above 4% of GDP would remain the cornerstones of its fiscal strategy under the Public Financial Management Act and its commitments under the IMF-supported Extended Fund Facility program.