President Anura Kumara Dissanayake has announced that the government has decided to temporarily suspend its plan to purchase 1,750 pickup trucks for state institutions, citing rising global crude oil prices, higher fuel import costs and the country’s foreign reserve position.
The President said the decision was taken in view of the need to maintain strong economic stability to withstand external economic shocks, while taking lessons from the country’s past economic crisis, when a lack of government funds contributed to Sri Lanka’s bankruptcy.
Addressing the centenary celebration of government surveyors, the President stated that Sri Lanka spent US$4 billion on fuel imports throughout 2025. However, the same amount had already been spent by August 2026. Consequently, total fuel import expenditure is expected to rise to US$6 billion by the end of this year.
The 2027 Budget has allocated Rs. 2 trillion for capital expenditure, an increase from the Rs. 1.3 trillion allocated in 2026. The President pointed out that importing machinery and raw materials for capital development projects would further increase demand for US dollars and place additional pressure on foreign exchange resources.
The government plans to spend Rs. 600 billion on electrifying the Kelani Valley railway line. It also intends to implement the Kurunegala–Galewela, Rambukkana–Galagedara and Kahathuduwa–Ingiriya expressway projects using domestic funds.
According to Central Bank reports, US$1.684 billion had been spent on motor vehicle imports by August 2026. Sri Lankans had also spent US$815.2 million on overseas travel during the period.
In response to these challenges, the President said the 2027 Budget would place greater emphasis on expanding foreign exchange earnings and controlling the outflow of US dollars from the country.
