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NAVSTRAT-2030 NAVSTRAT-2030

CHAPTER 4 Government vision of promoting a Blue Economy initiative, the country aims to become a
maritime hub in the region taking advantage of its central geographical position and proximity to
RESOURCE ALLOCATION AND BUDGETING major sea lanes. In order to realise government Blue Economy initiatives, it is essential to achieve

The NAVSTRAT-2030 will require a comprehensive budget allocation in order to effectively maritime security objectives. Hence, it justifies to allocate at least 25% to 30% of defence budget
implement and achieve its strategic objectives. Especially, when developing a comprehensive provisions towards the SLN to acquire essential technology, platforms and infrastructure to
resource allocation and budgetary plan for the SLN, it requires careful consideration of several facilitate rules based good order at sea.
factors like;
Budgetary Rationale for Force Structuring
● The evolving maritime security landscape
● New and emerging threats Navies are capital and technical intensive. Thus, there needs to be a clarity of thought and
● National priorities and government policies understanding on this premise from the polity. SLN is not in a position to invest in a multitude of
● Available resources platforms, technologies, sensors, weapons and equipment that would be envisaged by any maritime
st
● National Gross Domestic Product (GDP) nation in the 21 century due to financial constraints. However, SLN could compensate to its
overall limitations through a balanced force generation capacity at a particular time and space.
Therefore, considering all aspects mentioned in above, the resource allocation and budget to be
prioritized; The underlying strategic logic of this endeavour is to identify a viable figure of personnel required
● Investment in naval infrastructure facilities to enhance the SLN’s operational for an optimum quality to quantity mix for the future Navy in order to achieve the desired effects
capabilities and facilitate the maintenance of naval assets pursuing SLN’s maritime security objectives.
● Allocation of sufficient funds for the new acquisitions
● Provisions for adequate resources for training and development
● Allocation of funds for research and development initiatives to promote innovation Figure 4.1
and technological advancements Possible Future Scenarios based on Recurrent and Capital Expenditure Variances
● Provision of financial resources for international cooperation initiatives to enhance
maritime safety and security through partnerships with foreign navies and agencies 2023-2024 2025-2027

Comparison of National Defence Budget and Navy Budget in Last Six Years Recurrent : Capital Recurrent : Capital

Defence spending has consistently increased over the past decade, despite the end of the armed 85% : 15% 75% : 25%
conflict in 2009. Annually GoSL spends around 1.7% to 1.9% of GDP for defence budget. In
2023, GoSL allocated Rs. 411.7 Bn to defence and it is 1.8% of GDP. This is the third highest (Current State) (Break-even)
budget allocation among all ministries, exceeded only by Finance and Public Administration. As
per the Table 4.1, SLN has received 17% to 20% of allocation from defence budget.
Towards a
Table 4.1 2040 + New 2028-2030
Comparison of Defence Budget with SLN Budget (2019 - 2024) Operational
Recurrent: Capital Recurrent: Capital
DESCRIPTION 2019 2020 2021 2022 2023 2024 70% : 30%
60% : 40%
Defence Budget(Mil) 279.1 283.8 307.8 353.1 411.7 423.7
(Rs Bn) (End State) (Desired State)
SLN Budget 56.4 56.4 57.3 61.4 77.7 81.3
(Rs Bn)
SLN Budget as a 20.2% 19.90% 18.60% 17.40% 18.90% 19.20%
Percentage of Defence
Budget

Annual Increment of Very 1.57% 7.27% 26.5% 4.6%
SLN Budget compare minimal
to previous year percentage

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