Budget must boost external sector capacity, economists urge

Economists and financial analysts have emphasized the need for the upcoming 2027 budget to include targeted initiatives aimed at bolstering the country's external sector performance and resilience. The call reflects concerns about Sri Lanka's foreign exchange position and the importance of generating sustainable external revenues as the nation works toward economic stabilization. Enhanced external sector capacity is viewed as critical to supporting currency stability, increasing export competitiveness, and attracting foreign investment during a period of fiscal consolidation. Policy recommendations center on allocating resources to infrastructure development, export promotion, and capacity-building initiatives that would enable Sri Lankan businesses to compete more effectively in regional and global markets. Analysts suggest that strengthening the external sector through strategic budget allocations could provide additional buffers for the economy while supporting employment generation and sustainable growth in the medium term.