Sri Lanka increases 2025 defence budget by 3%

Sri Lanka's defence budget is forecast to dip in the coming few years due to economic pressures facing the country. (Janes Defence Budgets)

Sri Lanka has announced a defence budget of LKR442 billion (USD1.5 billion) for 2025. According to budgetary documents published by the Sri Lankan government on 18 February, the new Ministry of Defence (MoD) allocation represents a nominal 3% increase over the revised 2024 defence budget of LKR430.4 billion. The Sri Lankan MoD budget in 2023 was LKR382 billion, according to the budgetary documents.

The 2025 MoD budget includes LKR382 billion for ‘recurrent expenditure' for military operations, salaries, supplies, and maintenance activity. A total of LKR60 billion has been allocated for ‘capital expenditure' including procurement. The allocation for recurrent expenditure is a year-on-year increase of 3%. The appropriation for capital expenditure is a rise of 1%.

The budgetary documents also provide detail about funding for separate branches of the Sri Lanka Armed Forces. The biggest recipient is the Sri Lanka Army (SLA), which receives LKR225.5 billion in the 2025 defence budget, an increase of about 3%. The Sri Lanka Navy (SLN) and Sri Lanka Air Force (SLAF) are allocated LKR92.5 billion and LKR72.1 billion, respective increases of 12% and 4%.

These funding allocations include capital expenses. The SLAF receives LKR21.4 billion in 2025 for capital expenses, while the SLN is allocated LKR19.3 billion. The SLA, by far the biggest service in terms of personnel, receives LKR5.4 billion in capital expenses.

Other recipients under the MoD budget include the office of the minister of defence, the departments of civil security and meteorology, and the Sri Lanka Coast Guard. The latter receives LKR642 million, including LKR250 million for capital expenditure.

Downsizing