Sri Lanka’s parliamentary Committee on Public Finance has approved the Appropriation Bill for 2027 after examining the government’s proposed expenditure, revenue targets and debt-servicing requirements, according to an announcement issued by Parliament on October 28.
The committee met on October 22 under the chairmanship of Member of Parliament Dr. Harsha de Silva.
Officials from the Ministry of Finance, Planning and Economic Development presented the expenditure estimates and explained the assumptions used in preparing the proposed budget.
The Bill provides for approximately Rs. 9.92 trillion in expenditure across two schedules, according to calculations using the official legislative document.
Two schedules account for Rs. 9.92 trillion
Section 2 of the Appropriation Bill provides for Rs. 4,992.773 billion in expenditure under its first schedule.
A separate provision identifies Rs. 4,927.230 billion in expenditure authorised under existing laws and charged to the Consolidated Fund.
Adding the two amounts produces approximately Rs. 9,920.003 billion.
The distinction between the schedules matters when interpreting the government’s spending plans.
The first schedule contains expenditure allocations for ministries, departments and other institutions.
The second concerns expenditure already authorised through other legislation.
| Expenditure provision | Amount |
|---|---|
| First Schedule | Rs. 4.993 trillion |
| Second Schedule | Rs. 4.927 trillion |
| Combined total | Rs. 9.920 trillion |
Calculations by Lakbima News show that the second schedule represents approximately 49.7% of the combined amount.
The figures are proposed expenditure provisions. They do not establish how much money will actually be spent during 2027.
Borrowing provision sets Rs. 3.8 trillion limit
The Appropriation Bill also contains provisions authorising government borrowing during 2027.
Under Section 2, the outstanding balance of borrowing covered by the provision must not exceed Rs. 3.8 trillion at any given time during the financial year or at its end.
The Bill specifies how short-term borrowing and settlements are to be treated when calculating the amount.
The provision should not be confused with Sri Lanka’s total outstanding public debt.
It also does not establish that the government intends to borrow the maximum permitted amount.
The actual borrowing requirement will depend on financing conditions, debt maturities, revenue collection and expenditure during the year.
Committee examines infrastructure and debt servicing
Parliament said the committee examined allocations for road development, healthcare facilities, education infrastructure, electricity expansion and urban development.
Officials also discussed financial assistance for small and medium-sized enterprises and credit guarantee schemes.
The committee considered expenditure on public sector salaries and pensions.
Foreign debt-servicing requirements and expected external financing were examined alongside the government’s public debt management plans.
The parliamentary announcement does not provide a separate list of amendments requested by the committee.
Revenue forecasts remain central to budget implementation
Ministry officials presented the macroeconomic forecasts used to prepare the budget estimates.
The committee discussed measures intended to improve tax administration and achieve government revenue targets.
The ability to meet expenditure commitments will depend partly on the revenue actually collected during 2027.
The government’s domestic borrowing programme provides another source of financing.
That analysis concerned a specific debt issuance. The Appropriation Bill sets out the proposed financial framework for the following year.
Parliamentary approval process continues in November
The Appropriation Bill received its first reading in Parliament on October 7.
The Budget Speech and second reading are scheduled for November 12.
The second-reading debate is expected to conclude with a vote on November 20.
Committee-stage proceedings are scheduled to continue until December 14, when the third-reading vote is planned.
The Committee on Public Finance’s approval is one stage in that process.
The Bill has not yet completed the parliamentary procedure required for enactment.
