The Ceylon Chamber of Commerce has welcomed the broad policy direction of Budget 2027, saying it provides continuity in economic reforms and reinforces the Government’s commitment to economic transformation, fiscal discipline and macroeconomic stability.

However, the Chamber has stressed that timely and effective implementation of the Budget proposals will be critical to moving Sri Lanka from economic stabilisation towards sustained, investment-led growth.

In its assessment of the Budget, the Chamber said the continuity between the 2026 and 2027 Budgets was particularly encouraging, as several structural reforms initiated last year had been retained and further strengthened, providing greater policy certainty and predictability for businesses and investors.

Key initiatives carried forward include the implementation of the Trade National Single Window, the phased removal of para-tariffs, the rollout of the Digital ID framework, expansion of market access through Free Trade Agreements and improvements to investment facilitation mechanisms.

The Chamber also highlighted ongoing Customs reforms, the expansion of Bandaranaike International Airport, enhanced financing facilities for small and medium-sized enterprises (SMEs), and reforms to the management of State-Owned Enterprises as important measures supporting the country's competitiveness.

It noted that more than 20 proposals submitted by the Chamber had been reflected in Budget 2027, indicating closer alignment between private-sector recommendations and national economic policy priorities.

Among these are the establishment of a professionally managed investment promotion agency, improvements to trade facilitation and export competitiveness, consideration of a successor programme with the International Monetary Fund (IMF), and accelerated implementation of key legislative reforms.

The Budget has also incorporated proposals aimed at expanding digital government services, promoting cashless payments and accelerating digital adoption across the economy.

In the energy sector, the Chamber welcomed initiatives to accelerate the deployment of Battery Energy Storage Systems (BESS) and strengthen fuel storage infrastructure, describing energy security as an important factor in supporting economic activity and investment.

Other measures highlighted include the productive utilisation of underused agricultural land, support for the expansion of the digital economy and IT/BPO industries, and tax reforms intended to facilitate exporters. These include provisions recognising newly VAT-registered businesses as eligible exporters.

Despite these positive developments, the Chamber identified several areas requiring greater attention if Sri Lanka is to strengthen its growth prospects.

It called for a stronger emphasis on attracting Foreign Direct Investment (FDI), accelerating reforms in factor markets, particularly land and labour, and expediting public procurement reforms to improve the efficiency and speed of project implementation.

The Chamber also pointed to the need for more targeted and actionable policy measures to unlock the growth potential of tourism, agriculture, IT/BPO and logistics, sectors which could make a greater contribution to investment, employment and foreign exchange earnings.

Overall, the Chamber described Budget 2027 as an important step in advancing the country's economic transformation, while emphasising that policy announcements alone would not be sufficient to deliver the desired results.

The success of the Budget, it said, would ultimately depend on translating its commitments into actual investment, improved competitiveness, export expansion and sustainable economic growth.

The Chamber reiterated its readiness to work with the Government and other stakeholders in supporting the implementation of the proposed reforms.