Sri Lanka's 2025-26 Budget Passes Amid Mixed Support

Sri Lanka's 2025-26 budget passed with a parliamentary majority. Three opposition MPs, representing the Tamil plantation worker community, supported the increase in workers' daily wages. President Anura Kumara Dissanayake focuses on strengthening tax collection under IMF-led economic revival efforts, while opposition criticizes lack of comprehensive economic strategy.

Sri Lanka's 2025-26 budget passed in parliament on Friday with a majority vote, signaling mixed political support. Out of 225 members, 160 voted in favor, while 42 opposed, and eight abstained. Significantly, at least three opposition MPs, representing the Indian-origin Tamil plantation worker community, supported the government's proposal to increase plantation workers' daily wages to LKR 1,750.

Presented by President Anura Kumara Dissanayake on November 7, who oversees the finance portfolio, the budget emphasizes strengthening tax collection and increasing state revenue. This initiative is critical to meeting the conditions of the ongoing IMF-led economic revival program. The debate over the budget lasted a week, during which the main opposition accused the government of presenting a budget influenced by the IMF without clear strategies to ensure economic stability.

Main opposition leader Sajith Premadasa criticized the government for failing to propose a credible economic plan, labeling it an 'IMF budget' that does not adequately provide economic benefits to the public. The discourse highlights ongoing tensions in balancing foreign-led economic recovery efforts with domestic fiscal policies.

(With inputs from agencies.)