Sri Lanka readies 2027 budget post IMF

Sri Lanka prepares its 2027 budget to reassure investors following its IMF bailout. President Dissanayake aims to balance fiscal discipline and growth amid rising energy costs.

FILE PHOTO: A view shows Colombo skyline, in Colombo, Sri Lanka, August 25, 2025. REUTERS/Thilina Kaluthotage/File Photo

Sri Lanka will use next week's budget to convince investors its economic recovery can outlast a four-year International Monetary Fund bailout, balancing growth revival with surging energy costs. The upcoming financial plan lays the groundwork for the island nation's return to bond markets following the program's conclusion. Maintaining fiscal discipline remains crucial as the government shifts from crisis stabilization toward long-term expansion.