Chairman of the Committee on Public Finance (COPF), Dr. Harsha de Silva, has expressed serious concern over the government’s sluggish capital expenditure, cautioning that it may jeopardize Sri Lanka’s economic recovery and development goals.
Although the government allocated Rs. 1.4 trillion for capital projects in 2025, only Rs. 136 billion—less than 10%—was spent during the first four months of the year. Dr. de Silva attributed this underperformance to two primary factors: the early-year reliance on a vote on account, which limited the launch of large-scale projects, and delays in disbursing funds to local authorities due to postponed elections.
“If this trend continues, as much as Rs. 1.3 trillion in planned spending could remain unused,” he warned.
While improved tax revenue has slightly strengthened the primary balance, he emphasized that insufficient capital investment could drag economic growth down from last year’s 5% to just 3.2% in 2025.
Dr. de Silva urged the government to urgently reassess and accelerate its capital expenditure programs, stressing that without strategic investments, meaningful economic and social progress will remain out of reach.
