Sri Lanka to explore expanding India FTA as 2027 budget adds concessionary loans

Sri Lanka is to explore expanding its existing Free Trade Agreement with India, and a committee of officials has been appointed by the Cabinet to pursue the initiative. President Anura Kumara Dissanayake presented the 2027 Budget in Parliament.

Rs. 67,687 million has been allocated for interest subsidies and refinancing to banks, which is expected to support Rs. 174 billion in concessionary loans to entrepreneurs through state and private banks. A housing loan scheme of up to Rs. 5 million is planned for migrant workers.

The budget also proposes a Rs. 1,000 million interest subsidy for fisheries loans and an interest-free loan scheme for paddy mill owners to buy paddy at the Government guaranteed price.