Sri Lanka Announces Record Education Budget as Government Prepares Major 2026 Reforms

Sri Lanka has allocated the highest education budget in its history for 2026, a move Prime Minister Dr. Harini Amarasuriya says will support long-term policy reforms and strengthen institutional frameworks across the sector. Addressing Parliament during the debate on budget allocations for the Ministry of Education, Higher Education and Vocational Education, she emphasized that funding alone cannot transform the system without robust planning, clear policy direction and strong institutions.

Dr. Amarasuriya noted that a successful education system depends on three key components—well-designed policies, efficient institutional structures and adequate financial resources. She said the prolonged failure to align these elements has contributed to persistent challenges, though the commitment of teachers and education officials has helped maintain overall quality.

Reviewing progress made in 2025, the Prime Minister said the government focused on identifying structural gaps, reforming institutions, improving decision-making and ensuring that budgets reflect policy priorities. This groundwork, she said, prepares the sector for major reforms beginning in 2026.

The Ministry’s initiatives in 2025 centred on four pillars: promoting equity, enhancing quality, improving governance and strengthening evidence-based policymaking. Dr. Amarasuriya highlighted that policies and institutional frameworks have now been developed around these priorities.

She also addressed governance failures exposed by a recent report on the Gampaha Wickramarachchi University of Indigenous Medicine, noting that past decision-making had been weakened by political interference and personal interests. These issues, she said, had undermined university standards and harmed students—challenges the government began correcting in 2025.

The 2026 budget allocates Rs. 7.04 billion—equivalent to 2.04% of GDP—for the education sector, the highest share seen in many years. While the commonly referenced 6% of GDP benchmark will not be met immediately, the Prime Minister stressed that sustainable progress requires strengthened institutions and coherent policy frameworks, not just increased spending.

An additional Rs. 3 billion has been designated specifically for education reforms. Dr. Amarasuriya reported that after the 2025 budget was approved in April and spending began in May, financial progress improved from 18% midyear to 69% by December—a level of efficiency she said the sector had not achieved before.

Looking ahead, the Prime Minister said the government aims for even greater progress in 2026 and 2027. She acknowledged that longstanding weaknesses remain but underscored the need for stronger accountability, timely action on issues affecting schools and universities, and systematic, gradual improvements to ensure lasting change.