Sri Lanka capital investment projects take off soon
- CNL Reporter
- July 23, 2025
- Investment, News
- investment projects
- 0 Comments
Sri Lanka capital investment projects will take off soon with the delays being addressed, Cabinet Spokesman and Media Minister Nalinda Jayatissa said.The government in its maiden budget allocated a record Rs.1,315 billion for 2025.
However, only over Rs. 200 billion worth projects or 15 percent of the total allocated capital investments have been approved and the related procurements are being processed, government officials have said.
“There was a delay in the procurement process and lack of technical officers,” Minister Jayatissa said adding that now they are addressed and we hope the projects will accelerate soon. You will see it becoming 60 percent soon in no time.”
Sri Lanka’s procurement process takes around six months and thus most capita; investment projects face an inevitable delay. The full-year budget for 2025 was passed in April due to a government change in September last year.
Analysts have raised concerns over sluggish capital spending citing it could dent future economic growth.Sri Lanka has to ensure higher economic growth in the next three years to start repaying defaulted debts and prevent second sovereign debt default.
The island nation has estimated the growth to be around 5 percent this year though the International Monetary Fund (IMF) has estimated to have a 3.5 percent for 2025.
