India Raises Budgetary Assistance To Sri Lanka In 2026-27 Budget

India has increased its budgetary assistance to Sri Lanka to INR 4 billion ($43.6 million) in the 2026–27 Union Budget, up from INR 3 billion ($32.7 million) in the revised estimates for 2025–26, reflecting a year-on-year increase of around 33%.

According to the External Affairs Ministry’s Notes on Demands for Grants, actual Indian assistance to Sri Lanka stood at INR 3.17 billion ($34.6 million) in 2024–25, before being budgeted and later revised to INR 3 billion for 2025–26. The higher allocation for 2026–27 signals a strengthened level of financial support.

Sri Lanka’s increased allocation comes amid a largely stable regional assistance framework. India’s total aid to foreign countries has been budgeted at INR 56.86 billion ($620.1 million) for 2026–27, slightly lower than the revised estimate of INR 57.84 billion ($631.0 million) for 2025–26.

Bhutan continues to be the largest recipient of Indian assistance, with an allocation of INR 22.89 billion ($249.7 million) for 2026–27. Nepal has been allocated INR 8 billion ($87.3 million), while the Maldives is set to receive INR 5.5 billion ($60.0 million). Sri Lanka’s allocation places it among India’s more significant bilateral aid partners in the region.

Overall expenditure of India’s External Affairs Ministry has been increased to INR 221.19 billion ($2.41 billion) for 2026–27, compared to INR 217.43 billion ($2.37 billion) in the revised estimates for 2025–26.