The decision comes as part of the government’s broader strategy to balance revenue generation with sustainable import policies, while continuing to ease certain import restrictions introduced in recent years.
Although older vehicles will remain restricted, the government plans to rely heavily on vehicle imports to boost state revenue next year. Officials project an income of around Rs. 550 billion from this sector in 2026, compared to an estimated Rs. 650 billion this year. Since the relaxation of the import ban in February, vehicle import taxes have already contributed over Rs. 450 billion to government coffers.
With the budget nearing completion, sources indicate that no major revisions to the existing tax structure are expected. In parallel, the government aims to promote export-led growth by introducing fresh incentives for exporters.
The Aswesuma welfare programme is also set for a funding increase, with Rs. 240 billion allocated for next year—up from Rs. 229 billion this year. The budget is expected to extend further support to the fisheries, agriculture, and tea industries, which remain vital to the national economy.
Meanwhile, the phased public sector salary revision introduced this year is anticipated to add an additional Rs. 100 billion to state expenditure. The 2026 budget is being formulated in alignment with the International Monetary Fund (IMF) programme and its fiscal discipline framework.
