Tracking delivery on manifesto promises

Enact a modern investment law to streamline business procedures and improve access to finance for SMEs.

Why this status: Modern investment-law reform is advancing but not complete. The 2026 Budget reports FDI-streamlining amendments to existing investment laws and planned PPP and Investment Protection Acts; it also proposes an expanded enhanced-capital-allowance threshold for SMEs. The promised single modern law that streamlines business procedures and improves SME access to finance was not shown as enacted, so this is an active reform programme rather than a fulfilled pledge.

Expand the harbour infrastructure to increase capacity by 30% by 2027.

Why this status: Under way. The 2026 Budget commits to capacity and efficiency projects at Colombo Port, including Western Container Terminal Phase II, feasibility studies for ports logistics centres and the proposed Colombo North Port Development Project. The sources do not yet demonstrate the promised 30 percent capacity increase by 2027.

Provide appropriate tax concessions for initial public offerings (IPOs) for capital formation.

Why this status: The government’s official national policy repeats this economic or tax commitment as a key activity. This is a formal implementation direction, but no nationwide completion evidence is shown, so the promise remains in the works.

Introduce investment schemes with special benefits for Sri Lankan expatriates to invest their earnings.

Why this status: The government’s official national policy repeats this economic or tax commitment as a key activity. This is a formal implementation direction, but no nationwide completion evidence is shown, so the promise remains in the works.

Introduce new savings and investment plans, including expatriate Bonds for Sri Lankans living abroad.

Why this status: Partly delivered. The 2026 Budget introduced a contributory pension scheme and a concessional housing-loan scheme for migrant workers, creating new financial products for Sri Lankans abroad. However, the reviewed Budget does not introduce the specifically promised expatriate bond, so the wider pledge is not fully delivered.

Categorize goods applicable for VAT and introduce a different tax rate for each category.

Why this status: Stalled. Current Inland Revenue guidance shows a single 18 percent standard VAT rate and 18 percent for financial services, with 0 percent largely limited to export supplies. It does not establish the promised differentiated VAT rates by domestic goods category.

Introduce Point of Sales (POS) systems and digital invoicing to streamline VAT collection.

Why this status: Partly delivered. The Inland Revenue Department introduced a legally binding revised VAT invoice format from July 2026, including API-based reporting to strengthen digital tax administration. That advances digital invoicing, but the evidence does not establish the separate Point-of-Sale rollout promised for VAT collection.

Increase the tax depreciation allowance for deductible expenses on the purchase of machinery and equipment up to 120% of capital expenditure for companies to stimulate production.

Increase the annual tax threshold for individual income tax from Rs. 1.2 million to Rs. 2.4 million and revise the tax rates and tax brackets on a fair basis.

Why this status: Partly delivered. The 2025 Inland Revenue amendment increased personal relief from Rs. 1.2 million to Rs. 1.8 million and revised income-tax bands from April 2025, but it did not reach the Rs. 2.4 million annual threshold promised in the manifesto.

Implement measures to expedite the collection of taxes in arrears.

Why this status: Under way. The President's Office says the Inland Revenue Department is pursuing programmes to recover outstanding tax arrears, alongside restructuring, digitalisation and national e-invoicing work. This is evidence of an active implementation programme, but it does not yet demonstrate that arrears collection has been comprehensively expedited across the system.

Increase government expenditure on health to at least 3% of the GDP within the electoral term.

Why this status: Official Treasury planning records describe Sri Lanka's public health expenditure baseline as about 1.5% of GDP, well below the manifesto's 3% target. The newer 2026–2030 Public Investment Programme raises nominal health allocations and the 2026 Budget funds major health initiatives, but the public documents do not demonstrate that total government health expenditure has reached 3% of GDP. The pledge therefore remains an unmet electoral-term target with an active spending track.