Colombo:Sri Lankan President Anura Kumara Dissanayake unveiled the country's 2027 national budget on Thursday, aiming for a sustained economic growth rate of 7%. The budget announcement included substantial investments in energy, infrastructure, and trade sectors.

According to Anadolu Agency – English, President Dissanayake presented a government expenditure plan of 9.92 trillion Sri Lankan rupees ($31.8 billion) in parliament. The plan dedicates approximately 2 trillion rupees for capital investment.

The budget features a range of energy initiatives, including a 500-megawatt floating solar program, a 30-megawatt battery storage system, and 26.5 billion rupees allocated to strengthen the national electricity grid. Additionally, the government introduced subsidies for households installing eligible rooftop solar battery systems, offering 25,000 rupees per kilowatt, with a cap at 250,000 rupees.

Further economic strategies outlined by Dissanayake include exploring a free trade agreement with China, expanding the existing trade agreement with India, and establishing an artificial intelligence excellence center.

The context of these initiatives traces back to Sri Lanka's severe economic crisis in 2022, characterized by a foreign debt default and critical shortages of essential goods, which led to significant civil unrest and the eventual ousting of former President Gotabaya Rajapaksa. In response, Sri Lanka secured a $3 billion bailout from the International Monetary Fund (IMF) in 2023 and is currently seeking an additional $345 million under the IMF program, pending approval.

The impact of the economic challenges remains evident, with inflation reaching 8.3% in October, putting pressure on household finances. Parliamentary debate on the budget is set to begin on Friday, with a final vote scheduled for December 14.