President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, presented his maiden Budget Speech in the Parliament today (17).
The 79th budget of the Independent Sri Lanka aimed at developing the country in a way that enables it to repay debt when repayment commences in 2028 today (17), encapsulated three main facets;
i. Growth of production of industry, services and agriculture.
ii. Production must take place with the active engagement and participation of people.
iii. The benefits and gains from production must be equitably shared across society.
The Head of the State also noted that this years’ budget is prepared based on these principles, and that the government intend to set a foundation to create an economy where all citizens are active participants, active stakeholders, and active beneficiaries.
According to the Head of State, the budget deficit for the fiscal year 2025 is estimated at Rs. 2,200 billion, which is 6.7 as a percentage from the GDP.
The total expenditure for next year will be Rs. 7,190 billion, which is 21.8% of the country’s GDP and the total revenue and grants will be Rs. 4,990 billion (15.09%).
The government has allocated Rs. 5,886 billion for recurring expenditure such as subsidies and salary payments. For salaries and wages, Rs. 1,230 billion has been set aside, and Rs. 1,290 billion for subsidies and transfers.
President’s full budget speech is as below;
The country went through its deepest and most complex socio, economic and
political crisis in 2022 since independence. Although the crisis erupted in the year
2022, the underlying causes of the crisis are historical and structural. Corrupt
governance, failed economic policies and irresponsible public financial
management are the root causes of this crisis. As a consequence, there was
breakdown of normalcy in economic activities in the country which was
experienced by all sectors and social groups from businesses to households.
Shortages in goods and services including fuel, electricity, essential food and
medicine caused severe hardship on the people of the country, especially the
women, children, disabled and the elderly people. Professionals were compelled
to leave the country. People had to wait in long queues for days to access basic
necessities and some died while waiting in the queues. The crisis of 2022 was not
a mere economic crisis, it was a colossal failure in political administration up until
that point. Even though the initial breakdown of the economy has been treated
and largely contained, the economic crisis of 2022 has transformed into a
humanitarian crisis affecting the poorest and the most vulnerable sections of
society.
Going beyond the economic and the social, the crisis also triggered a political shift
in the country. Unbearable economic hardships led to social uprising against the
corrupt rulers. People’s power forced them to step down from government.
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Thereafter, a temporary Government was formed which was a distortion of the
people’s mandate. However, the aspirations of people for socio, economic and
political transformation remained unfulfilled as the new temporary government
protected and continued to project the corrupt, waste public money and
suppressed the people. Measures taken to postpone the local Government
election in March 2023, shattered the expectations of the people for democracy.
Through the Presidential election and the General election at the end of 2024 with
unshaken determination, dedication and leadership, people took a progressive
decision to form a new Government with a strong mandate to direct the country
towards a common prosperity by transforming the economic, social and political
system of the country.
Hence, this Budget becomes historic as it lays the foundation for fulfilling those
aspirations of the people for economic transformation of the country, by driving
the economy towards sustainable growth and development.
One of the challenges we faced at the outset was dispelling the wrongful picture
of us created by the myths and malicious political propaganda against our
economic policy and vision by those who tried to stop this triumph. We have
succeeded in that. There were misconceptions that the Sri Lanka Rupee against
the Dollar will rise even to LKR 400, that an era of fuel queues will return,
international development partners and countries would isolate the new
Government, investors will lose confidence, and that private property will be
completely nationalized. Despite such negative propaganda against us, we were
able to emerge successfully to stabilize the economy and build strong
relationships with international partners and create confidence among investors.
Accordingly, prices and the financial sector gradually stabilized with the
benchmark annual Treasury bill rate coming down to 8.8 percent. Foreign
currency reserves were at USD 6.1 billion by the end of December 2024 even after,
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the debt restructuring related payments of USD 570 million in December 2024,
surpassing the predictions. Additionally, despite concerns over currency
depreciation, the Sri Lankan Rupee has strengthened to approximately Rs. 300
per US dollar. We expect an economic growth of around 5 percent in 2025.
From mid-2022, Sri Lanka implemented economic reforms with the support of
the International Monetary Fund (IMF) and other international partners in order
to address the crisis. These remedial measures in some cases added to the
pressures on the citizenry – particularly measures such as cost-reflective energy
pricing, tax increases, and interest rate hikes. While we recognize the role played
by the IMF Extended Fund Facility Programme (IMF-EFF) in stabilizing the
economy, we are also of the view that in order to design our economic agenda
achieving economic sovereignty is necessary.
Another key point in the economy was the conclusion of the debt restructuring
process in December 2024. In fact, when we came into power, the debt
restructuring process was ongoing which we did not want to obstruct given the
potential of destabilising the economy if such a drastic change took place. While
taking this decision, we also considered the significant time already spent on the
debt restructuring process and the additional costs the continuation of the process
would incur.
This process has provided substantial debt relief, significantly reducing debt
servicing costs. It is imperative that the country leverages this fiscal space to
strengthen external and fiscal buffers and enhance non- debt generating inflows
such as export income and foreign investment and ensure long-term financial
stability to facilitate the smooth resumption of debt repayments in the future. As
a result, Sri Lanka’s credit ratings were upgraded by leading global agencies, such
as Fitch Ratings and Moody’s by several notches at once. These improvements
have been gradually building investor confidence, fostering trade and investment
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opportunities, and lowering international financial transaction costs; key factors
in driving economic growth.
On the other hand, the created economic crisis continues to impact many,
particularly the most vulnerable segments of society. The crisis led to a significant
rise in the cost of living, with inflation rising up to 70 percent in 2022. Although
inflation has since declined, price levels of many goods and services remain
elevated, and income growth has not kept pace accordingly, thereby reducing
living standards of the people. Especially because the fact that real wages have
dropped significantly over the last couple of years it is necessary to offer a fair
pay hike. Further, the Government has increased cash transfers to targeted
communities and extended the beneficiary time period through the Aswesuma
program and offered other targeted social benefits to provide relief to those in
need.
However, cash transfers of this nature are not a sustainable solution to eliminate
the widespread poverty in the country. It is the obligation of a humane
government to take care of the citizens who are unable to engage in economic
activity due to various difficulties and challenges. We all know that there are
inclusion and exclusion errors in the Aswesuma programme. That’s why the
Government is planning to select the most deserving people to the programme.
At the same time, a sustainable solution to poverty alleviation is also necessary
through enhancing opportunities for all people to engage in economic activity to
their fullest potential.
Economic growth must take place in a manner that is inclusive, where all citizens
have enhanced economic opportunities, and the resultant benefits are reaped
fairly by all strata of society. Growth for the sake of growth has little value to
society unless it is a means to uplifting the lives of all members of society. For
several decades, economic activity and economic benefits have been concentrated
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amongst the few. The concentration of income at a household level, with the top
20 percent of households accounting for 47 percent of household expenditure
according to the latest (2019) Household Income and Expenditure Survey.
Western Province accounts for 44 percent of GDP in 2023. Accordingly, what is
needed going forward is for a greater democratisation of the economy, where
economic opportunity is more fairly distributed. Mass struggles and last year’s
election saw people asserting their political rights. What is necessary is for
economic rights to be similarly asserted. This is the philosophy of this budget.
This year’s budget is prepared under significant constraints. We should not forget
the severity of the economic crisis that we have been through since 2022. Most
countries go through what is known as a “Lost Decade” following a sovereign
default. However, we have achieved stability to a certain extent. Therefore, this
budget has been prepared with a focused sense of fiscal discipline, economic
vision and guidance. We are ready to give the political leadership necessary to
reach the objectives of this budget.
The Public Financial Management Act sets the key fiscal rule, which is a limit of
primary expenditure of 13 percent of GDP. This year’s budget is prepared in
accordance with this requirement. Therefore, we have to be cautious in the way
we spend limited tax funds to ensure we get the best social return out of such
spending.
In this year’s budget, we have been able to allocate funds for many of our key
priorities, although it may not be to the fullest extent that is desired. Whilst these
focus areas are different to traditional budgets, we have also allocated funds for
the continuity of ongoing initiatives, whilst making adjustments to align these
with our mandate. This is evident in our increased expenditure on the Aswesuma
programme and other social welfare priorities. We have allocated funds for the
senior citizens’ interest subsidy from July 2025, to the maximum extent that is
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feasible given the tight fiscal constraints. We are also committed to implementing
a robust mechanism to prevent abuse of this scheme. We have allocated 4 percent
of GDP for capital expenditure in this year’s budget. This is a key contribution
from the Government towards driving economic growth. We will take measures
to invigorate the SME sector, public transport, rural development, agricultural
rejuvenation, local entrepreneurship, incentivise research, and remove barriers to
growth and efficiency of domestic and export-oriented production. In all of these
and other public expenditures, we will exercise a far greater degree of caution in
terms of prioritisation, targeting, effective implementation and ensuring value for
money. Therefore, the economic and social return is expected to be higher from
every rupee that is spent out of the public finance.
As we continue on this journey of economic rebuilding, fiscal space will expand.
As we unlock more savings through efficiency gains, elimination of corruption
and waste, better prioritisation, and better tax administration, there will be more
resources available to us to fulfill people’s priority. Therefore, we as a country
must be patient, and collectively work with discipline and determination, and the
rewards will materialise as we go forward.
Principles of Budget 2025
A budget is not just a set of revenue and expenditure proposals for the upcoming
year, it is also a reflection of the Government’s approach to building the economy
and overall policy. This budget will encapsulate three main facets of the supply
side of economic policy objectives;
i. Growth of production of industry, services and agriculture.
ii. Production must take place with the active engagement and participation
of people.
iii. The benefits and gains from production must be equitably shared across
society.
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Similarly, on the demand side for goods and services, the Government’s policy
objectives are;
i. To ensure continuous supply of essential goods and services.
ii. Such goods and services must be supplied at a fair and reasonable price.
iii. Goods and services must be of an acceptable level of quality.
The mechanism by which these supply and demand objectives will be achieved
would be a combination of the following;
i. Through the competitive market where supply, demand, and prices are
determined through the forces of competition.
ii. Government must regulate and monitor the market through regulatory bodies.
iii. Active Government participation in supply and demand in certain areas.
iv. Organizing production in certain areas.
This years’ budget is organised based on these principles, and we intend to set a
foundation to create an economy where all citizens are active participants, active
stakeholders, and active beneficiaries. The Government’s role is to facilitate and
remove the impediments for people to fulfil their economic potential. It is an
injustice when a person is unable to fulfil their economic potential due to living
in a remote area. It is an injustice when a person is unable to fulfil their economic
potential due to a disability, due to a lack of educational opportunity, due to a
lack of basic infrastructure. This is not an easy process that can be resolved
overnight. It requires a great deal of effort to empower citizens to fulfill their
economic potential. It is important to invest in education and training to build the
required skills and capacity of the people. It is important to invest in healthcare
to ensure people have the opportunity to fulfil their capabilities. Providing
infrastructure to enable people to access markets and engage with economic
opportunities in Sri Lanka and overseas. The Government must ensure that
competition is fair – where there isn’t excessive concentration of market power
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that creates an uneven playing field. The proposals in this budget will begin
economic empowerment of the people of this country. This would be the
foundation for democratisation of the Sri Lankan economy.
Growth must also be driven by continuous productivity growth – and
digitalisation of the economy is an essential. Another critical foundation for
economic advancement, but also social upliftment, and political reform, is the
good governance and elimination of corruption. Governance reforms and anticorruption initiatives are a top priority of the Government. The Government’s
flagship Clean Sri Lanka initiative aims to give life to this aspiration of society.
Medium Term Macroeconomic Direction
Through the proposals presented in this budget, we are laying the foundation for
a new paradigm in macroeconomic trajectory. We expect economic growth of
over 5 percent real GDP growth over the medium term. Through our measures
to improve supply capacity in the economy, we expect price shocks to be
minimised, thereby providing further support to low and stable inflation.
Macroeconomic policy path will also be supportive of a stable external current
account balance, putting an end to the era of large current account deficits.
Accordingly, we expect the currency, which is based on market fundamentals,
will no longer experience spells of substantial volatility.
Growth will be facilitated by a strong export sector, where we expect exports of
goods and services to reach an all-time high of close to USD 19 billion in 2025.
This growth in non-debt creating inflows along with robust economic growth and
a primary budget surplus of 2.3 percent of GDP will ensure Sri Lanka is well
placed to meet the gradual increase in debt service payments from 2028 onwards.
The country’s poverty rate reached 25.9 percent in 2023 according to World Bank
estimates. Whilst most countries that have undergone a sovereign default
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experience a prolonged period of elevated poverty, we hope to see a reversal of
this trend by 2025, followed by a persistent decline in poverty as the proposals in
this budget take the first steps towards a comprehensive effort to empower the
poorest and most vulnerable members of society.
With sound financial management, responsible debt management, human capital
investment, a robust social safety net, economic diversification, promotion of
exports, improvement of investment climate, modernization of agriculture, green
economy policies, innovation, digitalisation, entrepreneurship & startup
ecosystems, Public-Private Partnerships (PPPs), strengthening of anti-corruption
measures, improvement of governance, and promotion of transparency, and
sustainable growth strategies, we expect to better use the post-crisis opportunities
to create a transformative change in the Sri Lankan economy to achieve long-term
economic stability and prosperity.
I will now present the 2025 Budget proposals to this Parliament.
1. Expanding Exports of Goods and Services
Government will formulate the national export development plan (2025-2029)
with a view to increasing Sri Lanka’s export of goods and services on an
ambitious scale by enhancing Sri Lanka’s ability to export into global markets.
MSMES will be facilitated to tap new export markets, expand existing markets or
to connect in the value chains of large-scale exporters and global value chains.
With the view of removing limitations in access to high quality, affordable raw
materials, new Tariff rates will be based on a National Tariff policy to create a
simple, transparent and predictable tariff framework.
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Sri Lanka’s network of Free Trade Agreements (FTAs) with strategic partners,
particularly with a view to greater economic ties with ASEAN nations will be
expanded through the Regional Comprehensive Economic Partnership (RCEP)
and other agreements.
Enhanced focus will be placed on economic diplomacy with dedicated and more
professionalised efforts by Sri Lanka’s diplomatic missions towards enhancement
of Sri Lankan exports of goods and services.
Sri Lankan expatriates will be leveraged for enhanced access to overseas business
networks, commercial opportunities, and commercial collaboration with Sri
Lankan exporters.
Key border agencies and exporter registration will be automated and integrated
through implementation of the Trade National Single Window (TNSW).
The new Customs Law will be introduced to enhance trade facilitation and
revenue collection.
Double Taxation Avoidance Agreements (DTAs) will be expanded beyond the
existing 44 DTAs with priority given to countries with high trade and investment
potential.
2. Investment Promotion and Facilitation
Government will support expansion of export-oriented investment, sectorspecific zones, establishing eco-industrial parks which focus on sustainable
practices, resource management, and green technology through Public Private
Partnership (PPPs) and privately run zones.
The Government will revisit the Economic Transformation Act with appropriate
revisions to suit the emerging developments.
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Government will lease out under-utilised state-owned land for productive
economic activities.
An Investment Protection Bill will be enacted to facilitate and protect
investments.
Improvements in the country’s ease of doing business will be prioritised in key
areas such as registering property, ease of paying taxes, trade facilitation,
enforcement of contracts, and obtaining credit to attract foreign direct
investments (FDI). Measures for digitisation of public services will play an
important role in enabling this objective.
Government will introduce laws to ensure effective implementation of the onestop-shop concept which consolidates all necessary approvals.
Barriers for local firms to invest overseas will be reviewed and gradually
rationalised by establishing appropriate safeguards to track repatriation of
earnings and dividends.
A Public Private Partnership (PPP) Bill will be introduced.
Bimsaviya programme will be expedited to develop good quality land titles for
small scale land owners, which will increase the commercial usability of land.
A new Insolvency Law, already in the draft stages, will be expedited.
Government will call for foreign direct investments to optimize the utilization of
Sri Lanka’s untapped potential in investment, industrial development, and value
added exports of Sri Lanka’s mineral resources and marine economy.
Government will provide required technical and financial assistance for exporters
and importers to obtain quality testing and certifications.
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The testing and calibration labs, referral centers, the referral Center for health
research on cancerous inputs, Universities and other conformity assessment
bodies inclusive of Industrial Technology Institute will also be developed with an
effective coordination mechanism to have efficient service delivery for clients. In
order to fulfill the desired outcome of the NQI system in the country, we propose
to allocate Rs.750 million for 2025.
3. Leveraging Sri Lanka’s Strategic Location
Sri Lanka has the potential to be a hub for trade, logistics, financial services, and
the digital economy. This budget will provide the fundamental steps towards
fulfilling this potential.
Logistics holds significant potential to serve as a premier driver of economic
development in Sri Lanka, leveraging the country’s strategic geographic location.
Currently, logistics contributes approximately 2.5 percent of the nation’s GDP, 7
percent contribution to exports and provides direct full-time employment to an
estimated 40,000–50,000 individuals.
The completion of the East and West Container Terminal projects will have a
significant capacity enhancement of the Port of Colombo. Additionally, the
proposed Colombo West Terminal 2 and Colombo North Port is expected to
expedite the performance of Sri Lanka’s ports. Therefore, we will call for
Expression of Interest for these projects within a month.
The Port of Colombo is currently experiencing severe congestion as container
volumes have surged significantly, exposing the need for critical development in
infrastructure and systems and procedures.
Therefore, we propose to allocate Rs. 500 million from the 2025 Budget to support
the land acquisition process and initial preparatory works of the Kerawalapitiya
custom inspection yard and Bloemendhal Logistics Park.
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As a long-term measure to ease the container traffic congestion in and around the
Colombo port and increasing foreign earning through value addition, it is
proposed to establish an Internal Container Dry Port (ICD) at Veyangoda as a rail
based Integrated Multimodal Cargo and Logistic Center (IMCLC). We propose to
allocate Rs. 500 million to review previous studies, identify an institutional
mechanism, land acquisition and initial preparatory works on ICD at Veyangoda.
We propose to allocate Rs. 500 million to support the initial development of the
National Single Window System, Truck Appointment System, E-Cargo Tracking
System and Port Community System.
Modernizing infrastructure and incorporating cutting-edge technology is crucial
for improving cargo movement. Outdated scanning systems are causing delays
in the whole supply chain. Therefore, we propose to allocate Rs. 1,000 million to
support the initial development and establishments of advanced scanning
systems for Port of Colombo and Bandaranayake International Airport.
4. Digital Economy Advancement
Accelerating the development of Sri Lanka’s Digital Economy is one of the most
important pillars of our Economic Development strategy. Digital Transformation
will uplift economic growth through enhancing productivity across industrial
and service sectors, advancing economic opportunity, improving public service
delivery and improving transparency in governance and public finance.
Introduction of Sri Lanka Unique Digital Identification (SL-UDI) for all citizens is
a key priority. SL-UDI is a foundational Digital Public Infrastructure (DPI)
essential for the development of a digital economy. Steps have already begun
towards this process and it is expected that this process will be expedited.
Public and Institutional Trust in the Safety and Integrity of Digital Services and
Systems is critical for the success and sustainability of Digital Transformation. Sri
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Lanka’s Digital Economy will be governed and protected through the creation of
new legislation and the strengthening of existing legislation. We will also focus
on strengthening the related institutional framework. We will enact new
Legislation to further accelerate the Digital Economy and to empower an Apex
Digital Economy Authority as well as other subject specific agencies in the Digital
Eco-System. We will also strengthen legislation and institutions related to Cyber
Security, Data Privacy and Data Protection.
Digital Payment Infrastructure is another foundational component of Sri Lanka’s
Digital Economy Framework. The accelerated adoption of digital payments
flowing between Government, Business and Citizens will be key accelerator of
the Digital Economy. The recently launched GovPay system is an example of one
such Digital Payment channel. It is necessary to gradually shift away from a cashbased economy. It would be implemented in a carefully phased process with clear
communication.
The Government will facilitate a conducive investment environment to attract
Private Capital and Partnerships across all segments of the Digital Economy. This
will also support to attracting investments towards innovations in artificial
intelligence, robotics, FinTech, and other emerging technologies.
Our aim is to grow Sri Lanka’s Digital Economy to a level in excess of USD 15 Bn
or 12 percent of the National Economy over the next 5 years. In achieving this
ambition, the Government aims to facilitate an increase in the ICT industry’s
annual export revenue to USD 5 billion.
Accordingly, we propose to allocate Rs. 3,000 million to bolster the acceleration
of Digital Economy Development through the initiatives described.
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5. Tourism Sector
It is necessary to ensure that we focus on the value generated from tourism
instead of simply focusing on the number of arrivals.
Towards this end, steps will be taken to develop local destinations so as to
optimize value generation from each destination with local branding of
destinations to reflect the unique cultural value proposition of that destination
with required infrastructure facilities. After identification, the required critical
infrastructure development activities will be carried out on a priority basis during
the 2 year period, 2025-2026. This infrastructure development will be supported
by an integrated city branding and promotion campaign for these developed
destinations. For this purpose, we propose to allocate Rs. 500 million for year
2025.
The Government will facilitate training youth in communication and other skills,
in the tourism sector.
Developing and promoting new tourist destinations to expand the moving
capacity of tourists will be a priority agenda of the Government.
In parallel, a digital ticketing system will be introduced to address issues of overcrowding and improve capacity of the sector.
Bandaranaike International Airport Terminal 2 will be expanded with the
support of Japanese investments.
The Government will improve tourist safety and facilities through a combination
of technology based solutions linking the tourist police, Government agencies
and civic organizations to provide information on tourist attractions, receive
security alerts, feedback on tourist experience and monitor complaints to law
enforcement authorities.
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6. SMEs as the Backbone of Economic Development
The development of small and medium enterprises and entrepreneurship is a key
objective of the Government. Access to finance has long been one of the biggest
challenges facing the SME sector and rural entrepreneurs. The financial culture in
this country has been one of collateral based lending which has led to a great deal
of financial exclusion. Whilst banks must protect the interests of depositors and
ensure prudence in their lending practices, there also needs to be a solution for
SMEs and new entrepreneurs as well.
Towards this end, the Government is working towards setting up a development
bank. As a first step, the function of a development bank through a new
administrative structure will be established through the existing state bank
mechanism. The Government will support this task through the National Credit
Guarantee Institution (NCGI).
7. Fostering Innovation & Entrepreneurship
R&D projects will be aligned with the industry needs in collaboration and
consultation with diverse stakeholders including research institutions,
universities, Government agencies and private sector and National Intellectual
Property Organization (NIPO).
Priority for R&D initiatives will be on following areas;
i. Providing co-financing for selected R&D initiatives.
ii. Coordinate linkages between public R&D institutions and relevant
universities with Sri Lanka’s diaspora engaged in similar fields globally.
iii. Facilitate exporters to receive trademark protection globally through
accession to the Madrid Protocol.
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It is reported that 272 patent registrations were in 2020 and out of them, 223
patents were Non-Resident registrations and we ranked as the 61st country in
2019 in terms of patent application submission. We observe that there are a
number of research findings which have not been commercialized and utilized
for the benefit of the economy, and reaping the investment opportunities. For this
purpose, we propose to allocate Rs. 1,000 million to create an Innovation
Invention Fund for commercialization of Research Findings.
8. Expenditure Management
The Government will continue efforts to streamline state expenditure. The entire
ecosystem of allowances and benefits provided to public representatives is being
reviewed. Through such interventions, it would be possible to free up valuable
resources that are tied up in depreciating assets and deploy them in far more
productive uses.
To set an example on the side of the political leadership on expenditure
management, the number of Ministers is limited 21. Ministers’ and Deputy
Ministers’ expenditure has been rationalized reducing the public expenditure for
the Government.
Public resources such as mansions allocated for the President, Prime Minister and
Ministers have been redirected to effective public use. A Committee is appointed
to recommend the best use of such properties in economically viable projects and
the public interest.
All luxury vehicles that require heavy running & maintenance expenses will be
auctioned.
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● Minimizing state expenditure on vehicles.
Vehicles assigned as official vehicles to Government officials have high
fuel consumption and are of significant value. These vehicles incur high
maintenance costs. Hence, the Government has decided to minimize heavy
expenditure on vehicles by encouraging selected officers through an
additional financial benefit.
● Rationalisation of State Agencies
Over the years, the Government mechanism has enlarged into an unwieldy
structure. Several agencies have been set up without appropriate study or reason.
This has resulted in duplication, wastage, and a hindrance to the effective
delivery of Government services. In order to remedy this situation, a Committee
under the Prime Minister’s Secretary has already been appointed to review the
functions and utility of a plethora of Government agencies. It would be possible
to determine which agencies need to continue, which need to be amalgamated
with other agencies, and which agencies need to be discontinued, which need to
change their objectives. This exercise is expected to deliver substantial gains in
terms of improved efficiency in delivery of public services.
● Institutional Governance of State-Owned Enterprises
A key requirement to reduce future financial risk emanating from SOEs is to
improve SOE governance. Towards this end, a Holding Company under the full
control of the Government will be established under which selected SOEs are held
as subsidiaries with a view to improve governance, financial discipline and
operational efficiency.
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9. Supporting Women’s Economic Participation
Programs for women’s affairs are implemented at the line ministry as well as the
provincial council level. In that, a monthly assistance is given for providing
nutritious food especially for pregnant mother, for which Rs. 7,500 million has
been earmarked. Also, for the Triposha program for the nutrition of mothers and
children, Rs. 5,000 million has been allocated.
For programs to prevent child and women violence, empower women and save
women, Rs. 120 million has also been allocated. In order to maintain the network
spread across the island for the implementation of programs aimed at women Rs.
720 million will be incurred.
10. Towards a Healthy Society
i. Digitalization of the Health system
Digitalization within Sri Lanka’s health system has been minimal compared to
the other countries in the region. Accordingly, new initiatives and interventions
will be carried out from 2025 to enhance the digitalization of healthcare delivery.
This will include digitalization of functions of National Medicines Regulatory
Authority (NMRA), State Pharmaceuticals Corporation (SPC), and improvement
and expansion of the “Swastha” system.
ii. Improving Rural-level Primary Health Care
Efforts are being made to improve the service delivery at over 1,000 Primary
Medical Care Units (PMCUs) and Divisional hospitals with the focus on noncommunicable disease control and prevention. Furthermore, palliative and
geriatric care services will be available at selected PMCUs in each district,
especially considering the ageing population.
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iii. Estate Health
Actions will be taken to expedite the process of strengthening estate level health
care service through Public Private Partnership (PPP) with Regional Plantation
Companies. Required human resources, necessary equipment and
pharmaceuticals for estate hospitals will be provided by the Government.
iv. Pandemic Preparedness
National capacity for pandemic prevention, preparedness, and response will be
improved with the assistance of development partners over the next three years.
Additionally, surveillance and early warning capacity against all potential health
hazards will be strengthened.
A healthy population is also essential for human capital development, as it
directly contributes to increased productivity, better educational outcomes,
enhanced workforce participation, innovation and skill development. It also
promotes social stability, improve quality of life, and drive economic growth and
stability. Accordingly, Government health budget for 2025 has significantly
increased to an allocation of Rs. 604,000 million.
In order to ensure the supply of pharmaceuticals and medical supplies, Rs.
185,000 million is allocated in 2025 budget. The Government will take necessary
actions through the Ministry of Health to ensure the procurement and
distribution of quality pharmaceuticals and medical supplies without any
interruption and minimize wastages while optimizing procurement processes
and full utilization of funds.
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v. Provision of healthcare treatment for Children with Neurodevelopmental
Disabilities, including Autism
Sri Lanka has seen a rise in the number of children diagnosed with neurodevelopmental disabilities, including autism over the past decade.
To address these challenges, it is proposed to implement a 5-year national
program to improve health, education and service facilities for children with
neurodevelopmental disabilities, including autism across all 25 districts of Sri
Lanka. As an initial step, we propose to allocate Rs. 200 million for 2025 to
establish a treatment center for children with neurodevelopmental disabilities
with international standards at the Lady Ridgeway Children’s Hospital (LRH).
Further, efforts will be made to establish similar kind of treatment centers in every
district with the necessary human resources within the next five years.
vi. Inclusive Early Childhood Development for Children with
Neurodevelopmental Disabilities, including Autism
Currently, the Pre-schools and Day-care services are provided by the private
sector. Pre-schools and Day-care facilities for children with Autism are limited.
This is mainly due to the lack of awareness and capacity among preschool
teachers and caregivers on inclusive education and early childhood development
for children with Neurodevelopmental Disabilities, including Autism.
Accordingly, we propose allocating Rs. 250 million for developing a model
daycare center.
11. Education Opportunities for Everyone
Due to economic challenges that prevailed in the country, renovations of school
infrastructure have not been done since 2019. Therefore, over Rs. 10,000 million
has already been allocated from the 2025 budget to upgrade school infrastructure.
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Rs. 135,000 million has already been allocated to improve the quality of the
university system.
● Pre-school Nutrition Programme.
We propose to increase the payment per meal per student for pre-school morning
meal programme from Rs. 60 to Rs. 100 and a provision of Rs. 1,000 million has
already been made in 2025 budget estimates for this purpose.
An allocation of Rs. 80 million has been made in the 2025 budget estimates to
construct a model early childhood education center laying a foundation for
lifelong learning.
Recognizing pre- school teachers as key players in human resource development,
in order to enhance the quality of preschool education and acknowledge their
valuable contribution, we propose to increase their monthly allowance by Rs.
1,000 starting from June this year. Accordingly, we propose to allocate Rs. 100
million for this purpose.
● Modernization of school Education
The Government’s policy is to develop a primary school within 3 kilometers
radius, where children’s residence or their parent’s place of work. At present,
there are 10,126 Government schools island wide. Of them, 3,946 are primary
schools, and approximately 634,094 children enrolled in these schools. There are
more than 3,000 schools having fewer than 100 students, 1,471 schools have fewer
than 50 students. Most of these schools are in rural and remote areas. This has led
to a great disparity between schools. Accordingly, it is proposed to review the
school system to prepare a national plan to relocate schools. Accordingly, we
propose to allocate Rs. 500 million to implement this programme.
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● Student Scholarships
a. We propose to increase monthly scholarship amount from Rs. 750 to Rs.
1,500 to Students who qualified grade 5 scholarship examination in lowincome families. Accordingly, we propose to allocate Rs. 1,000 million for
this purpose.
b. Nutritious Food Allowance has been supported for students in sports
schools to obtain a nutritious diet. Hence, we propose to double the
monthly Nutritious Food Allowance from Rs. 5,000 to Rs. 10,000 per
student. Budgetary provision has been already made in 2025 budget
estimate for this purpose.
c. We propose to increase this stipend from 4,000 to Rs. 5,000 per month for
students in vocational Education. Budgetary provision has already been
made in 2025 budget estimate for this purpose, in addition to which we
propose to allocate a further Rs. 200 million for the same.
d. We propose to increase monthly Mahapola scholarship from Rs. 5,000 to
Rs. 7,500 and monthly Bursary payments from 4,000 to Rs 6,500. A
provision of Rs. 4,600 million has already been made in 2025 budget
estimates.
All of these payments will be made from April, 2025.
● Scholarship for Pursuing Undergraduate Courses at High-ranking
Universities
We propose to create a programme to offer scholarships for students who show
outstanding performance in G.C.E. A/L examination to study undergraduate
degree programmes at high-ranking universities and return to Sri Lanka to apply
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their acquired knowledge and skills to the country. For this purpose, we propose
to allocate Rs. 200 million to initiate this programme in 2025.
● Development of Sports Schools
In this regard, we propose to develop specialized sports schools in five provinces;
Western, Northern, Central, Uva, and North Central, and the schools will be
selected based on the records of the past or present students accomplished in the
local and international competitions. Accordingly, we propose to allocate Rs. 500
million for the development of sports schools in five provinces.
● Improvement of Jaffna and other Regional Libraries
A large number of readers, including school students from Jaffna and nearby
islands, use the Jaffna Library. However, the infrastructure has not been
adequately developed for the benefit of these readers. Therefore, we propose to
allocate Rs. 100 million from this budget to provide computers and other essential
facilities for this library. In addition to that, we propose to allocate another Rs.
200 million under this budget for the development of other regional libraries.
12. Energy Sector
The energy sector is vital for the country’s economic development. We will focus
on diversifying energy sources with more weight on renewable energy and
modernizing infrastructure. Government will continue to invest in the energy
sector while welcoming local and foreign investors who could provide the best
tariff advantage to Sri Lanka. Necessary reforms to the regulatory framework will
be prioritized to facilitate internal restructuring with the new Act to be passed
soon.
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We awarded a tender to a 50MW wind power project at USD 4.65 cents for a unit
of electricity. In that context, awarding projects at an excessive tariff around USD
8.26 cents cannot be justified. To provide energy at a competitive cost to
industries, exporters, and consumers, we will welcome energy investments based
on the lowest tariffs and we will not provide preferential treatment purely on the
company or the country of origin.
When we exclude the oil tanks given CPC and IOC, there are 61 more oil tanks
in the Trincomalee oil tank complex which has 99 tanks of 10,000 Metric Ton
capacity. Considering the strategic location of these tanks, there is high potential
to access international markets. We expect to develop these tanks collaborating
with internationally recognized companies.
13. Agriculture and Food Security
The agriculture sector provides employment to approximately 30 percent of the
country’s labour force and is the backbone of the rural economy. Therefore,
enhancing the potential of the agriculture sector is a key requirement in terms of
improving economic opportunities for the vast majority of Sri Lankans.
The Government policy on agriculture sector is aimed at increasing its
productivity, competitiveness and resilience. The fertilizer subsidy for paddy
farmers will be continued, for which the Government has already allocated Rs.
35,000 million for 2025. The development of quality seeds, cascade management,
efficient use of water in agriculture has been identified as priority areas and are
expected to be supported by the budgetary allocation.
● Maintaining a Healthy buffer Stock: A sufficient buffer stock starting from this
Maha 2024/25 is proposed to be maintained as a resilience measure to bridge
the demand and supply of rice in the market while avoiding haphazard price
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volatility. We propose to allocate Rs. 5,000 million for this purpose for Maha
2024/25.
● Information System: The agriculture sector lacks a sound data and information
system for timely decision making. Therefore, action will be taken to establish
a sound data and information system covering the entire value chain from
the point of production up to the point of consumption under the ongoing
Asian Development Bank funded “Food Security Livelihood Emergency
Assistance Project” and will be expanded with the funds coming from the
new World Bank Project; Integrated Rurban Development and Climate
Resilience Project.
● Production Increase of Other Field Crops (OFCs): In addition to paddy, the
production of green gram, black gram, chillie, red-onion, cowpea, soya,
maize, potatoes and other selected cereals as well as tuber crops will be
increased through an accelerated programme over the medium term 2025-
2027. For this purpose, we propose to allocate Rs. 500 million for 2025, in
addition to the funds given for the Ministry of Agriculture for 2025.
It is appropriate to develop a regulatory framework to regulate the collection and
storage of paddy and rice stock in the market. Accordingly, it is proposed to
amend the Paddy Marketing Board Act for vesting the powers with them to
regulate the collection and storage of paddy and rice.
● Bringing Land into Production
Some of the lands presently managed by LRC, RPCs, SLSPC, JEDB and under
utilized will be identified and brought in for private investment including SMEs
taking the suitability of the land into consideration. We propose to allocate Rs.
250 million to undertake initial activities in this regard.
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● Youth Entrepreneurs and Producer Cooperatives
At present, there are many global examples of successful producer cooperative
arrangements. Fonterra a New Zealand dairy cooperative, Amul, Indian Dairy
Farmers Cooperative and Mondragon Workers Cooperative of Spain are a few of
the best global examples.
We too propose to adopt an alternative production approach where the
cooperative mechanism. The Government will support these cooperative
mechanisms through provision of land, agricultural extension services, and other
support. To further strengthen the legal empowerment and to provide the
necessary infrastructure facilities and financial incentives, we propose to allocate
Rs. 100 million for this initiative for 2025.
● Youth Entrepreneurship Development in Agriculture
The youth entrepreneurs in agro-based SMEs, particularly for those who expect
to scale-up or willing to engage in startups, will be targeted through this
initiative. We propose to allocate Rs. 500 million for this purpose.
● Dairy Production
At present, the domestic milk production is sufficient only to cater to around 45
percent of the local demand. In order to increase the dairy production, Rs. 2,500
million is proposed to be invested during 2025-26 for the improvement of Dairy
Value Chains and to enhance dairy farming productivity through the ongoing
Inclusive Connectivity Development Project.
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● Irrigation Sector Development
Sri Lanka’s agriculture-based economy is very significant with about 75 percent
of the population living and working in the rural sector. The total public sector
investment for irrigation sector development for 2025 is estimated at Rs. 78,000
million.
The new water resources development projects, including Malwathu Oya, Gin
Nilwala, Maduru Oya Right Bank development, Mundeni Aru project will
gradually be brought into implementation over the medium term, considering
the priority within the available fiscal space.
In order to rehabilitate down-stream development of Galoya, Rajanganaya,
Minneriya and Hurulu Wewa schemes, an allocation of Rs. 2,000 million is
proposed to be provided in 2025.
14. Plantations and other export crops
● Increasing Coconut Production
The global demand for coconut products is continuously increasing, and as
predicted by the industry, total nut requirement of the country would be 4,500
million nuts in 2030, where 1,800 million nuts are expected to be used for home
consumption, and the balance 2,700 million nuts can be absorbed for industry
purposes.
Therefore, we propose to allocate Rs. 500 million for high-yielding coconut
seedlings to the growers in the Northern region for planting 16,000 acres of new
coconut land in established Northern Coconut Triangle based on CRI
recommendation.
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● Other Export Crops – Spices
Measures will be taken to expand value addition in traditional exports such as
Cinnamon. Marketing and promotion of these products will be enhanced through
Sri Lanka’s embassies. The Government will provide technical assistance to
farmers in order to improve supply quality and facilitate linkage with value
added exporters, including through international joint ventures.
In order to link to the global value chain, we propose to allocate Rs. 250 million
to implement an integrated product development and trade promotion
programme on Ceylon cinnamon and other export crops.
15. Fisheries & Aquaculture
Limited availability of freshwater prawn seeds is identified as a major constraint
to further develop the freshwater prawn farming industry in Sri Lanka. In order
to promote the stocking of freshwater prawn in tanks and non-traditional
aquaculture, and enhance the future production towards export economy, we
propose to empower farming community/fisheries societies and local
communities and establishment of freshwater prawn hatcheries under Public
Private Partnership (PPP) arrangements, farmer cooperatives and marketing
networks and facilitate farmer societies to link with such marketing networks as
well. For this purpose, we propose to allocate Rs. 200 million.
16. Social Protection
Increasing ageing population, low female labour force participation, and
shrinking labour market have created a challenging situation in the country.
Furthermore, it is observed that inequality and vulnerability persist particularly
among certain segments; including children, disadvantaged women, the elderly,
the poor, and the differently-abled. Therefore, the Government’s responsibility is
to protect and to empower them to integrate into society as productive and equal
partners.
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● “Aswesuma” benefit enhancement
In order to ease the burden of vulnerable communities, the Government will take
necessary steps to safeguard them by enhancing the cash grants for those in the
social registry. Accordingly, the Government has increased social protection
programme net spending to Rs. 232.5 billion in 2025. The increase in the monthly
benefit allowance paid to the two social groups; the poor and the extremely poor,
from Rs. 8,500 to Rs. 10,000 and from Rs. 15,000 to Rs. 17,500, respectively, has
already been implemented with effect from January 2025. We propose to extend
the benefit payment period for transitional social groups whose payments were
set to end on March 31, 2025, until April 30, 2025. Further, for those eligible for
Aswesuma to enter the scheme, yet not included it is expected to finish
enumeration in May 2025, providing another opportunity for them to enter the
programme.
● Increase of the Kidney Patients /Disability/ Elderly Allowance
We propose to increase the monthly allowances for kidney patients and people
with disabilities from Rs. 7,500 to Rs. 10,000 and monthly allowances for elderly
persons from Rs. 3,000 to Rs. 5,000 with effect from April 2025.
● Empowering the “Aswesuma” beneficiaries for sustainable change
According to Government policy, 1.2 million “Aswesuma” beneficiaries will be
empowered using Government funds and foreign funds. Around 25,000 families
have been selected to be empowered under the pilot programme with the
assistance of the Asian Development Bank and the World Bank funded projects.
The remaining number of potential/ eligible families are expected to be
empowered gradually using the local funds. Accordingly, we propose to enhance
the empowerment programme by Rs. 500 million.
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The Government has already announced and implemented several other relief
measures such as the Rs. 6,000 payment for each student from low income groups
to support purchase of education related stationary and books. The Government
has also already provided a kerosene subsidy amounting to a total of Rs. 3 billion
during the period October 2024 up to March 2025 to support the livelihoods of
the fishing community, particularly to help them withstand the lingering impacts
of the economic crisis.
● Enhancing the Welfare of Children Placed in Probation – Renovation of
Certified Schools/Remand Homes and Childcare Institutions
At present, 379 certified schools/detention homes/children’s homes are being
operated. Out of these, 47 institutions are operated by the Government. The
facilities in these homes are at a very low level and it is observed that security is
not adequate in some places. Some buildings need repairs and the buildings in
some districts do not have sufficient space. Therefore, we propose to improve the
capacity of child care centers in the areas of physical and human resource
development. For this purpose, we propose to allocate Rs. 500 million.
● Establishing a child-friendly transport system for institutionalized children
to and from courts – transportation of child convicts
We observe that children in institutionalized homes are most vulnerable for many
reasons including due to inadequate transport facilities. Accordingly, we propose
to allocate Rs. 250 million in 2025 to purchase the necessary vehicles for this
purpose.
● Enhanced Social Security for Orphaned Children and Youth
In line with our manifesto and the Government’s commitment to ensuring that
every citizen is given the opportunity to lead a dignified and secure life, we
propose social security and housing to orphaned children. This initiative will
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provide them with long-term support, skills development, and financial security,
ensuring their well-being and integration into society as empowered individuals
who can positively contribute to the economy.
The 2025 Budget has presented proposals for the welfare of children in
Government institutions and detention homes. When implementing these
proposals, relevant institutions should prioritize the following matters:
i. A monthly allowance of Rs. 5,000 for institutionalized children and
orphans will be provided. We propose that Rs. 2,000 be deposited into a
minor’s account, and the remaining Rs. 3,000 be given to their legal
guardians under Government supervision for the children’s expenses. We
propose to allocate Rs. 1,000 million from the 2025 Budget for this purpose.
ii. Most of these children lack a family background or supportive system to
help them to start their lives with housing and security. Therefore, these
vulnerable communities are postponing marriage due to the inability to
afford housing, which leads to social stress, and economic disparities.
While their bank savings provide a foundation, it is often insufficient to
cover the cost of building a house. Considering this reality, we propose a
Rs. 1 million housing grant, to build a stable and secure house. To
implement this, the Government proposes to allocate Rs. 1,000 million in
the 2025 budget.
iii. Ensuring opportunities for children in care homes and Government
rehabilitation centers to enroll in the nearest national or Provincial Council
school with proper educational facilities when providing school education.
iv. Following rehabilitation methodologies that provide NVQ level 3 or 4
quality vocational/skills training for youth being rehabilitated in
rehabilitation centers, enabling them to join society as good, and
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productive citizens with a profession or livelihood upon release.
Developing a methodology for issuing Police/Grama Seva certificates in a
way that doesn’t hinder those who have been rehabilitated and
demonstrate good conduct from obtaining suitable employment.
v. Giving priority based on qualifications for Government housing
assistance, training, and employment recruitment when institutionalized
children are reintegrated into society after turning 18 and when such
children marry (especially for females).
vi. Amending relevant laws to allow individuals to continue residing in these
institutions under certain conditions when institutionalized children who
turn 18 are not in a suitable position to reintegrate into society, with the
aim of preventing their abuse and exploitation by various persons.
● Database on People with Disabilities
A significant number of the population suffers with one or many disabilities. We
observe that there is no reliable data base about their distribution, difficulties,
educational level, abilities to engage in economic activities and employment.
Therefore, we propose to allocate Rs 100 million to establish a comprehensive
database on the people with disabilities under the Secretariat for Persons with
Disabilities in collaboration with the Department of Census and Statistics in the
year 2025.
● Disaster Relief
A compensation of Rs. 250,000 is currently being paid to the people who lose their
lives and those who get permanently disabled due to disasters. Accordingly,
actions have been taken to increase this compensation to Rs. 1,000,000 for death
or permanent disabilities caused by all factors, including natural disasters and
damages caused due to wildlife.
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Further, the payment of compensation of Rs 2.5 million has been already
introduced for property damages that were not yet been compensated
particularly for children’s homes, elderly homes and residential centers for
persons with disabilities, which are affected by disaster.
● Mental Health
We are experiencing many unfortunate incidents of suicides among adolescents.
The Government has recognized the severity of this issue as a social problem.
Therefore, we propose to allocate Rs. 250 million for 2025 to implement a
medium-term programme to expand the awareness and counselling services for
students and adolescents by the Ministry of Health in collaboration with the
Ministry of Education.
● Manufacturing of Assistive Devices Locally
Assistive devices are crucial for people with disabilities and they are considered
as a part of their body. I observe that a comprehensive programme is required to
expand locally manufacturing facilities of these devices in all provinces.
Therefore, we propose to allocate Rs. 500 million for this purpose in 2025. Initially,
the assistive device manufacturing facility at the Rheumatology and
Rehabilitation Hospital, Ragama will be expanded as the national center and
regional manufacturing centers will be established as necessary.
● Providing essential foods at a concessionary price during the New Year
period
The Government has decided to provide a concessionary ‘Seasonal Food Package’
by allowing them to purchase essential food items at affordable prices as a
supportive measure to reduce the increased cost of living. Accordingly, it is
proposed to provide a Dry Food Ration including rice, canned fish, dhal, onions,
potatoes, and dried fish at a concessionary rate through Lanka Sathosa Ltd,
during the upcoming New Year season. We propose to allocate Rs. 1,000 million
to finance these rations.
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17. Sri Lankan Expatriates
Sri Lanka’s migrant workers play an important role in the country’s development,
both in terms of foreign exchange remittances and skills they bring back to the
homeland, following their work overseas. We are exploring ways of encouraging
and rewarding this important community of Sri Lankans. As a first step, we
propose to enable a more generous duty-free allowance for Sri Lanka’s migrant
workers as they return to the country. The criteria and basis for the allowance will
be determined and publicized following a detailed study of options.
18. Special Interest Scheme for Senior Citizens
We propose to implement a Special Interest Scheme for Senior Citizens. Under
this scheme, individuals above 60 years of age will be eligible for one-year fixed
deposits of up to Rs. 1 million with an annual additional interest rate of 3 percent,
above the prevailing interest rates in the market for ensuring their financial
stability. To implement the scheme, we propose to allocate Rs. 15,000 million to
subsidize the 3 percent additional interest to be paid for the senior citizens.
This scheme will be implemented from July 2025.
19. Creating a Drug – Free Society
Drug addiction is a significant concern in Sri Lanka, affecting various segments
of society. Therefore, the Government has recognized the importance of creating
a drug-free society through multifaceted approaches that go beyond punishment.
Accordingly, we propose to prepare a comprehensive programme incorporating
awareness campaigns, rehabilitation including counseling, social empowerment
and integration, and law enforcement. Accordingly, we propose to allocate Rs.
500 million to implement a compressive program to create drug-free society.
20. Skills Development Programme for Convicted Prisoners
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At present, there are around 30,000 prisoners in 37 prisons located island wide.
One third of them are convicted prisoners and others are remand prisoners.
Overcrowding of prisons results in degraded living conditions in the prison
which violates the notion that prisoners are also human beings.
Around 65 percent of the prisoners are in the peak of their working age; below
40. Accordingly, we propose to conduct employable and marketable skill
development courses together with vocational training institutions and award
relevant vocational qualifications. For this purpose, we propose to increase
existing allocation by Rs. 100 million to implement this programme.
21. Public Transport Modernization
An efficient public transport system is a crucial element of enhancing people’s
access to meaningful economic engagement and mobility.
Therefore, it is essential to enhance existing public transport systems with new
technologies and introduce new transport modes to meet the increasing
passenger demand, especially in urban and suburban areas. Accordingly, it is a
timely requirement to upgrade and modernize both road and rail transportation
systems.
● Bus Sector Modernization
As an initial step towards enhancing public sector transportation, a modern and
comfortable fleet of technologically advanced buses will be introduced on a pilot
basis. Accordingly, 100 air-suspension, low-floor, comfortable buses will be
deployed along three main road corridors within Colombo city. We propose to
allocate Rs. 3,000 million for the procurement of 100 low floor buses. In addition
to that SLTB will add 200 low-bed passenger buses for its fleet through its own
funds.
These buses will be operated under newly established companies collectively
known as Metro Bus Companies (MBC). Proposed bus companies will operate on
a fully digitized platform.
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● Railway Sector Modernization
Rail based public transportation is highly important in long distance as well as
the urban and sub-urban areas. However, the poor condition of the coaches
negatively impacts passenger safety, comfort, and train speed. Further, it is
important to establish the railway system as an industry while focusing on
repairing and building new coaches within the country.
Accordingly, as a first step, we propose to allocate Rs. 500 million to rehabilitate
old railway passenger coaches targeting to rehabilitate passenger coaches to
enhance the efficiency of services and cater the growing passenger demand.
We propose to allocate Rs. 250 million for 2025 to the Department of Railways to
initiate building new coaches aiming at fulfilling new passenger coach
requirements within the country.
In order to provide an efficient railway service and improve public transportation
facilities, we propose to extend the Kelani Valley Railway Line, which currently
operates up to Avissawella, beyond Avissawella in phases. An allocation of Rs.
250 million will be made through the 2025 budget to begin the initial work related
to this.
The Government will implement a joint time table in all bus routes after
discussing with CTB and private bus operators. The Government will continue to
invest in the Kandy multi-modal transport terminal development project which
would have important spill-over effects in terms of regional development.
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● Rail Transport for Agricultural Products
Transporting agricultural goods over the road network remains a major
challenge due to high costs, post-harvest loses during transportation, road
congestion, and environmental concerns. To address this, we propose to
introduce a dedicated rail-based transportation of agriculture products from
production centers to destinations.
We plan to upgrade the Thambuththegama Railway Station by incorporating
loading docks with storage facilities upon the recommendation of the study. To
support this initiative, we propose an allocation of Rs. 100 million for the
feasibility study as the initial step.
● SriLankan Airlines Legacy Debt Settlement
SriLankan Airlines (SLA) performs a leading service in the transportation of
passengers and cargo by air. Furthermore, previous Governments’ attempts to
divest state ownership and attract private investment have also been
unsuccessful.
In light of this, the Government would sign an agreement with those banks and
set aside Rs. 10,000 million for loan capital repayment in 2025 as well as Rs. 10,000
million for interest payments. The Airline would be fully responsible for ensuring
operating profitability once these legacy debt service costs are settled by the
Government. A new medium term strategic plan is being devised by the company
towards this end. Accordingly, we propose to allocate Rs. 20,000 million for this
purpose.
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• Enhancing Road Infrastructure
A robust road network is a critical component of the infrastructure necessary to
connect citizens with markets and public spaces.
As such, we propose an allocation of Rs. 3,000 million for improvement and
rehabilitation of rural roads, giving priority to roads that connect less developed
rural villages, tourist destinations, industrial estates and economically significant
places/areas in addition to the already allocated amount of Rs. 26,680 million for
the development of the rural roads island wide.
Aiming at ensure safe and reliable mobility to all users, we propose Rs.1,000
million allocation to rehabilitation of rural bridges in addition to the already
allocated amount of Rs 1,000 million for the development of the rural bridges
island wide.
● Rural roads and bridges in Northern Province
It has been observed that the Northern province has been largely isolated from
mainstream development. However, it holds tremendous potential to contribute
significantly to our economy. As such, focusing at the rehabilitation of basic
infrastructure needs, we propose to allocate Rs. 5,000 million for the rehabilitation
and improvement of rural roads and bridges in the Northern Province.
● Construction of Vadduvakal Bridge in Mullaitivu
The Vadduvakal causeway is a narrow bridge over the mouth of the Nandikadal
lagoon in Mullaitivu, which is the main artery connecting Mullaitivu,
Pudukkudiyiruppu, and Jaffna. This bridge is in a dilapidated condition which
creates risks to commuters. Therefore, we propose to build Vadduvakal bridge
aligned with the developmental needs of the Mullaitivu District. We propose to
allocate Rs. 1,000 million under this budget to commence work accordingly.
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22. Regional Development
The Decentralize Budget Programme 2025 is being implemented focusing on
building a production economy. For this purpose, we propose that each MP is to
be allocated Rs. 10 million for 2025 utilizing Rs. 2,250 million from the already
allocated budgetary provisions of Rs. 11,250 million to minimize the regional
disparities. The remaining Rs. 9,000 million will be allocated for the essential
development activities.
23. District Development Programme
As we understand, there are unanswered issues in many districts in spite of the
huge investment made by the Government annually through the budget on
various programmes. The particular issues may be related to infrastructure
development, enhancing localized production, effective service delivery, trade
and marketing, institutional improvements etc. In order to reach at an inclusive
and sustainable development, those untouched gaps and emerging needs in
districts are required to be addressed. This will catalyse the private sector to bring
investment for economic development and also will enable the local community
to enhance their decent living. In this context, we propose to allocate Rs. 2,000
million in the budget 2025 to address these emerging issues at district level.
24. Eastern Province Development
Eastern Province is one of the provinces with a huge potential for economic
development. Therefore, we propose to implement a comprehensive
development programme in the Eastern Province with the Indian Multi-sectoral
Grant Assistance to support infrastructure and livelihood development, focusing
mainly on education, health, agriculture, fisheries, tourism and community
empowerment sectors.
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25. Programmes to Uplift the Living Standards of Malayagam Tamil People
The Malayagam people are a part of the Sri Lankan nation and have been living
with significant difficulties over a long period of time. However, the livelihoods
of this community still remain below standards to have a dignified life.
Accordingly, Rs. 7,583 million has already been allocated to support the following
initiatives.
i. Rs. 4,267 million is allocated for development of estate housing and
infrastructure development.
ii. Rs. 2,450 million is allocated for Vocational training, Livelihood
development and Infrastructure Development of Malayagam Tamil youth
iii. Rs. 866 million is allocated for smart class rooms for schools in Malayagam
Tamil community.
26. Industrial Development
The industrial sector in Sri Lanka plays a crucial role in its economy
predominantly in providing employment opportunities, increasing income,
fostering innovation, and driving exports. Accordingly, the following proposals
are to be introduced.
• Industrial Zone dedicated for Chemical Manufacturing
With the aim of improving value addition to Sri Lanka’s extensive mineral
resources and providing essential industrial inputs for domestic manufacturing,
it is proposed to establish an Industrial Estate in Paranthan, Northern Province
dedicated for chemical product manufacturing including acids and alkalis. There
will be 5 Industrial parks such as KKS, Maankulam, Iranawila, Galle and
Tincomalee. We propose to allocate Rs. 500 million for this purpose.
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● Industrial Zone dedicated for Automobile and Rubber products
manufacturing
A significant level of investment in the domestically value-added automobile
manufacturing/assembly industry and rubber product manufacturing is an
important factor to cater to the demand required by the components
manufacturing industry to become competitive in the export market.
With this purpose, it is proposed to establish an Industrial Estate dedicated for
Automobile components and rubber manufacturing. We propose to manage the
requirement for this purpose within the already allocated budgetary provisions
of Rs. 1,500 million under the Ministry of Industry for this purpose.
27. Clean Sri Lanka
The Clean Sri Lanka Program is a massive program implemented through the
three main pillars of social development, environmental development and ethical
development to sustainably elevate Sri Lanka and the entire Sri Lankan society to
a higher level. For this, the entire public, the state sector, entrepreneurs,
businessmen including the private sector, national and international nongovernmental organizations, the Sri Lankan community abroad, international
donor agencies, various professionals and experts, are being planned and
implemented with the support of all.
Under this, It is expected to conduct a cultural festival where all sections of the
community can enjoy together promoting inter-ethnic, inter-religious and intercommunal ties in Sri Lankan society, mutual understanding and cooperation,
create facilities for the differently-abled people of our country which constitute a
significant percentage of the population, promote the ethics and capacity building
of facilitators such as three-wheelers, taxi drivers and tour guides for the tourism
industry, renovate several selected cities with ancient heritage with their ancient
43
identity, renovating buildings, repairing school equipment and improving
sanitation facilities for selected provincial schools with less facilities, building a
high-quality learning environment with the participation of the private sector for
early childhood development, promoting sanitation facilities in urban areas,
promoting road safety, drug prevention, managing stray animals, assisting
relevant agencies on managing solid waste, making the coastline attractive and
environmentally sustainable, carry out conservation of watersheds and
promotion of water quality in rivers, making public service efficient, creating high
resource utilization and building a corruption free public service and promotion
and dissemination of the Clean Sri Lanka concept.
For this, we propose to allocate Rs. 5,000 million from the state budget for the year
2025 in addition to the financial contribution of the donors.
28. Solid Waste Management
There is a growing issue of solid waste management in many areas of the country.
Anuradhapura, a city with significant historical and cultural value, is one such
example. With the Anuradhapura Teaching Hospital and a growing population,
managing both general and hospital waste has become a challenge, threatening
public health and the environment. To tackle this, we propose to allocate Rs. 750
million for a waste disposal facility. This initiative will improve cleanliness,
protect the environment, and promote sustainable development in
Anuradhapura municipal area.
29. Mitigating Elephant-Human Conflict and Conservation of Forests
To minimize crop damage, property destruction, and loss of life caused by wild
elephants, several measures have been implemented. These include the
improvement of approximately 5,611 km of electric fencing, with 1,456 km
identified for refurbishment. Additionally, guard posts along the fence will be
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constructed, necessary equipment will be procured, and elephant habitats will be
improved through invasive plant removal, better grassland management, and
enhanced water sources. A budget of Rs. 300 million has been allocated for these
efforts.
Furthermore, Rs. 100 million has been allocated to enhance the capacity of 270
offices, including wildlife zonal offices, guard offices, and Bittu officers. These
funds will support electric fence maintenance, vehicle and boat maintenance,
wildlife crime prevention, and overall efforts to reduce the human-elephant
conflict. An additional Rs. 240 million has been allocated as compensation for
victims of such conflicts, bringing the total budget for mitigating the elephanthuman conflict to Rs. 640 million.
Moreover, Rs. 1,050 million has been allocated to promote natural regeneration
and address deforestation. This funding will support reforestation efforts, forest
conservation initiatives, commercial forestry expansion, environmental
protection, and mangrove management. It will also facilitate eco-friendly
tourism, increase forest cover, minimize forest fires, and prevent forest-related
crimes.
30. Sustainable Financing
The Government will leverage opportunities in sustainable financing to foster a
vibrant ecosystem of Environmental Social and Governance (ESG) based
financing. The Ministry of Environment will work in coordination with the
Ministry of Finance and Central Bank, to access globally available pools of
sustainable financing linked to climate change initiatives and related endeavours.
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31. Developing Financial Markets
As Sri Lanka emerges from the economic crisis, the financial sector is also
recovering from a period of stress. It is not appropriate to focus on developing
the financial market of the country in order to position them to support growth
of the real economy. Capital markets need to be deepened and evolved in terms
of sophistication. The government will actively encourage private and
appropriate state entities to raise funds through listed equity and debt capital
markets.
As bank interest rates decline, it becomes all the more important for retail
investors to have access to well-regulated financial products that provide a
reasonable return. Unit Trusts, investment funds, and other collective investment
schemes will be important in filling this gap in the market. It is important for the
sector to explore innovations and more complex transitions whilst ensuring due
diligence and all necessary safeguards, amidst an effective regulatory
environment.
32. Governance Reforms
Corruption has been identified as a major impediment to economic progress.
Hence, there is an urgent need in addressing the rampant corruption that hinders
the country’s sustainable economic development as a collective effort. In this
context, it is not only the Government officials but also the private actors and the
entire citizenry should acknowledge their role in perpetuating corruption. In this
regard, the necessary legal framework will be strengthened further. The
enactment of the Proceeds of Crime bill and further strengthening of the
Commission to Investigate Allegations of Bribery and Corruption (CIABOC) will
be expedited with the increased financial and other support with the assistance
of the international institutions to drive anti-corruption initiatives towards
strengthening governance, transparency and accountability in Sri Lanka.
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Moreover, the Government will review and implement Proceeds of Crime
legislation which is now in draft stage following a collaborative drafting process.
33. Sri Lanka Day
The Government policy framework, “A Thriving Nation – A Beautiful Life”
articulates a vision for a reconciled Sri Lanka, committed to bridging gaps
between communities. Therefore, I propose to hold a “National Cultural
Festival”. This festival will be initiated in November and launched in December
which we have the highest number of tourist arrivals to our country. This festival
will be organized with the participation of the private sector. Accordingly, we
propose to allocate Rs. 300 million for this purpose.
34. Housing for Internally Displaced People
With the reconciliation initiatives and release of lands, the internally displaced
people (IDPs) are being resettled and refugees are returning to the Northern and
Eastern Provinces for resettlement after the conflict. However, the basic
infrastructure facilities and utilities of the resettle families are yet to be fulfilled.
Accordingly, we propose to initiate a multi-pronged strategy to address the key
issues faced by people in the North and the East. In the 2025 Budget, Rs.1,500
million has been allocated to meet the needs of resettling these people and speed
up the housing programme and provide essential relief to the families remaining
homeless based on the current requirement.
35. Essential Maintenance of Housing Schemes Constructed by Government
The physical condition of the public housing schemes provided by the
Government has been poor due to lack of maintenance and deficiencies in usage.
Many physical defects such as cracking, spalling, corrosion and water seepage
were observed at the external side of all these buildings. Accordingly, we propose
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to allocate Rs. 1,000 million for essential maintenance of the apartment complexes
constructed by the Central Government.
36. Housing for Artists/Journalists
With the assistance of the Government of the People’s Republic of China, 1996
housing units are being constructed. Within this, an apartment complex
comprising 108 housing units will be reserved from the Kottawa, Palathuruwatta
area for artists and journalists who make special contributions to the cultural
enrichment of our society.
37. Drinking Water Sector
● Expeditious completion of ongoing large-scale water schemes and
community water projects
The pipe-borne drinking water coverage by the National Water Supply and
Drainage Board and the Community Water Supply Department, is around 62
percent of the country’s population. Identifying the national importance of
ensuring safe water delivery, the Government has committed to provide
budgetary support to expedite the completion of Gampaha, Attanagalle, and
Minuwangoda integrated water supply project, Aluthgama, Mathugama and
Agalawatta integrated water supply project, Polgahawela, Allawwa and
Pothuhara integrated water supply project and Thabutthegama water supply
project where the completion has been delayed due to the economic crisis and
the suspension of credit facilities by the respective lenders. The Government
will provide the funding requirement of Rs. 41,234 million in a span of two
years with available fiscal space. Accordingly, Rs. 20,000 million is included
in the national budget for the year 2025 to facilitate the completion of the
above priority projects as “equity” contribution of the Government.
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● Extension of Community water supply scheme
We have realized the necessity of implementing the community-based water
supply schemes specifically in rural areas where the pipe-borne water
coverage is limited. To enhance the quality of rural life by eradicating
vulnerabilities in water stressed areas, including the Northern region and
CKDu affected areas, we recognize the importance of extending the
community-based rural water supply schemes in such areas to deliver fully
treated drinking water.
Accordingly, we propose to utilize the already allocated Rs 2,000 million in
the budget estimates under the Department of Community Water Supply for
the year 2025 to complete the community water supply schemes which have
already been started and to commence new community water supply
schemes.
● Re-initiating of Giribawa- Eppawala Water Supply Scheme
Giribawa and Eppawala areas being in a dry zone under North Central province
face difficulties in terms of access to quality drinking water, creating various risks
to the population of that region. We recognize the importance of providing
drinking water from surface water sources to the area of Giribawa and Eppawala
preferably by Rajanganaya Tank which is fed by Kalawewa through Kala Oya.
For this purpose, we proposed to allocate Rs. 1,000 million for re- initiating of
initial works in Giribawa- Eppawala Water Supply Scheme to provide pipe-borne
water to the area.
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38. Filling Essential Vacancies in the Public Service
We have stopped the past practice of filling the public service with the supporters
of politicians. Aligned with the Government’s vision, recruitment, promotions,
and transfers in the public service will be based on qualifications and skills, free
from political influence.
Due to the challenges posed by the COVID-19 pandemic, economic downturn,
and political instability, there is a large number of unemployed graduates and
youth. We will implement a strategic recruitment plan to hire 30,000 individuals
in essential public service roles, strictly according to cadre vacancies starting from
this year. Accordingly, we propose to allocate Rs 10,000 million for this purpose
in 2025.
39. Public Service Salary Increase
Given that nearly a decade has passed since the last basic salary revision, it is now
time to revise the salary structure having evaluated all factors in a holistic
manner. It is necessary to provide a decent living standard for public sector
employees, enabling the Government to attract talent and skilled workers, whilst
at the same time avoiding an excessive burden on the budget.
Accordingly, we propose to increase the minimum monthly basic salary from
Rs.24,250 to Rs.40,000 by Rs.15,750. The current ad-hoc interim allowance and
special allowance will be integrated into the basic salary giving a net increase of
Rs.8,250 in the minimum salary.
The proposed minimum monthly basic salary increase of Rs. 15,750 will also be
applicable to judicial services, public corporations, statutory boards, university
staff, and officers of tri-forces on the same basis in line with the minimum basic
salary increase for public sector employees.
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In addition to a minimum monthly basic salary increase of Rs.15,750, it is
proposed to raise the value of the annual salary increment by 80 percent.
Consequently, the minimum annual salary increment of Rs. 250 will be increased
to Rs. 450. It is also proposed to adjust annual salary increments for all public
sector employees to the same percentage.
The total estimated cost of this salary increase is expected to be Rs.325 billion.
Considering present fiscal constraints, it is proposed that this salary increase be
implemented in phases. Of the total net salary increase, Rs.5,000 and 30 percent
of the balance amount will be paid starting from April 2025, with the remaining
70 percent being paid in equal portions beginning in January 2026 and January
2027.
Therefore, it is proposed that Rs.110 billion be allocated for the proposed salary
increase in 2025.
As part of this salary increase, it is proposed that the retirement benefits for
officers retiring on or after 01.01. 2025 be calculated based on the new salary
structure, ensuring that they receive retirement benefits under the proposed 2025
salary scheme.
Considering the increase in the minimum basic salary of state employees, the
limit on distress loans for public servants which is currently set at Rs. 250,000 will
also be increased to Rs. 400,000. Further details of the salary increase are given in
the Technical Note in Annexure V.
40. Private Sector Minimum Wage Increase
The Employers’ Associations have already agreed to increase the monthly
Minimum Wage to the Private Sector workers from Rs. 21,000 to Rs. 27,000 in
April 2025 and to Rs. 30,000 from 2026.
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41. Reconsideration of the Wage of Plantation Workers
There are nearly 1.5 million plantation workers engaged in the sector, mainly in
tea, rubber and coconut. The Government is of the view that their living standards
need to be improved. In addition to the programmes focused on the development
of plantation sector, the Government will intervene to increase the daily wages of
the workers to Rs. 1,700.
42. Public Sector Pensions
Further, by considering salaries and benefits entitled to them, a monthly increase
of Rs. 3,000 was implemented immediately after the Presidential election thus
resolving the Pension Anomalies of Pensioners who retired before 01st January
2020.
We observe that there will be a pension anomaly created by revising the pensions
of the Government employees who retired from 2016 – 2020 only, based on the
salary scale of the fifth phase related to the year 2020, since all the pensioners who
retired till 31.12.2017 are on the same salary scale.
As this issue remains unresolved for a long time, we believe that it has to be
resolved in a phased manner within the existing limited fiscal space. Therefore,
we propose to revise the pensions of all pensioners who retired before 01.01.2020
in three phases, corresponding to the salary scales applicable to the year 2020 as
per the Public Administration Circular No. 03/2016.
As the first phase, the pensions of all pensioners who retired before 01.01.2018
will be revised in line with the third stage salary scales relevant to the year 2018
in the Public Administration Circular No. 03/2016 and to be implemented from
July 2025. For this phase, we propose to allocate Rs. 10,000 million through the
Budget 2025.
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Furthermore, we also propose to implement the pension conversions related to
the fourth and fifth stages of the salary conversion from July 2026 and July 2027,
respectively.
43. Legal Reforms
The Government will introduce a number of legal reforms in the coming year to
establish sound legal provisions aimed at fostering rapid economic development,
good governance, and effective public service delivery. These laws include
legislation to improve governance of state owned enterprises, creating a legal
framework for public-private partnerships, enhancing governance around
procurement, public asset management, statistics, data exchange, valuation, asset
management, microfinance and credit and anti-money laundering and terrorist
financing. More details on these laws are available in the Annexure VIII of the
budget.
44. Revenue Measures
Sri Lanka’s economic reform programme is based on a foundation of revenue
based fiscal consolidation. This is reflective of the fact that leading up to the
economic crisis, Sri Lanka had one of the world’s lowest Government tax revenue
levels of 7.3 percent of GDP in 2022.
For the year 2025, the bulk of revenue gains is expected to be delivered by the
liberalisation of motor vehicle imports that took place on 1st February 2025. This
process is being carefully monitored to ensure that import of vehicles does not
result in undue negative impacts on external sector stability. Other key revenue
measures which have already been announced in Parliament previously in
December 2024 include the increase of tax-free threshold for personal income tax,
further adjustments to the second income tax slab, removal of VAT on fresh milk
and yoghurt. The Government also decided to not pursue this year the Imputed
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Rental Income Tax that had been agreed by the previous administration. To
compensate for any revenue losses, the Government already presented in
Parliament measures including the introduction of VAT on digital services, the
imposition of corporate income tax on export of services, and an increase in the
corporate tax on cigarettes/liquor, and gaming.
The tax policy measures outlined here are expected to deliver the required
revenue to enable Sri Lanka to meet the revenue targets of 15.1 percent of GDP in
2025. Nonetheless, in parallel, the Government is taking concerted efforts to
improve tax administration and compliance. In fact, Sri Lanka’s revenue strategy
for the upcoming budget aims to enhance fiscal sustainability by strengthening
tax administration, improving compliance, improve institutional strength
through enhanced digitalization and rigorous monitoring mechanisms; while
providing relief to the most vulnerable groups of the society. Efforts will be
directed toward digitalizing tax systems to reduce leakages and enhance
transparency while minimizing human interactions in tax administration.
Sri Lanka is moving towards a cashless economy as a part of its broader
digitalization agenda to formalize the economy and improve revenue collection.
The use of Point-of-Sale (POS) machines across businesses, especially in VATregistered enterprises, will be implemented as a key initiative to facilitate digital
transactions and reduce cash dependency. A cashless economy will not only curb
tax evasion and illicit financial activities but also enhance fiscal efficiency,
contributing to Sri Lanka’s economic stability and growth.
Digitalisation of revenue agencies and the overall digital economy drive is
expected to provide significant impetus to the revenue enhancing efforts.
However, it is not just the tax collection authorities that have a responsibility in
this regard. Several other stakeholders, including audit firms and tax accountants,
have a responsibility to discharge their duties in a socially responsible manner
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such that the Government is not deprived of due tax revenue. Appropriate
measures will be taken to ensure compliance with the regulatory and legal
framework in this regard as well.
We are confident that these tax administration and tax compliance enhancement
measures will enable Sri Lanka to surpass revenue targets beyond 2025. At that
point, it will be possible to provide further relief to the public in a manner that
does not jeopardize the achievement of revenue targets and ensure the country’s
fiscal and economic stability.
45. Borrowing Limit
The Borrowing Limit for the Appropriation Bill for the financial year 2025 is
presented in Annexure II. In addition, the Technical Note on expenditure and
revenue measures is given in Annexure III and Annexure IV, respectively.
Further, the documents, which have to be submitted along with the Second
Reading of the Budget under the Public Financial Management Act, No. 44 of
2024, are also tabled.
Conclusion
While the policies that I outlined today reflect the vision upon which I was elected
to this office, I did not come up with them alone. These policies are the result of
an incredible effort, born out of the dedication and collective action of a Cabinet,
most of whom have never served in a Parliament but have vast experience and
practical knowledge. They were born from the experience of many dedicated and
devoted civil servants and policymakers who finally have a voice in shaping the
destiny of our country. And they were born from the confidence and courage of
the many renowned, patriotic professionals who have distinguished themselves
in their careers, and for the first time had the confidence that they could
contribute to a truly clean, truly functional and truly compassionate Government.
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If you look in the ranks of this Government, you will see a mix of some of the
most passionate and disciplined politicians, and some of the most accomplished
academics and professionals who have sacrificed their careers, time with their
families and even their business legacies to put their country before profit.
Together, we have begun a monumental effort. We have brought down costs of
living. We have begun restoring confidence in our justice system. And we have
for the first time banished not just corruption but even the appearance of
corruption from the highest echelons of power.
For many years now, those who felt moved to invest in Sri Lanka found that in
order to get anything done, they would first have to invest in middlemen. That
era is over. I can assure you that no elected or appointed official in this
Government will seek bribes or favours in return for doing or not doing their jobs.
However, in the very unlikely event that anyone among us does bend or break
the law, I can promise that whoever is responsible will be investigated and
prosecuted to the full extent of the law. This Government will never, ever, tolerate
corruption among its ranks. From here on, those who attempt to receive bribes
should be afraid. One should not be afraid of not paying the bribe.
Our judiciary has never been more free or independent. Our police force has
never been more empowered or independent. They will enforce the law without
fear or favour. However, many who have left Sri Lanka and live overseas know
that elimination of corruption is about more than just enforcing the law. It is about
modernizing the way Government functions, making the state machinery
function more efficiently, and function more transparently. This will address the
root cause of corruption by making it harder to take bribes, and less attractive to
pay them.
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Never has Sri Lanka had a chance like this to catch up with the modern world. I
see a chance for united Sri Lanka, for a clean Sri Lanka, for a prosperous Sri Lanka,
to surpass everyone’s expectations.
To the Sri Lankan Expatriates, those with Sri Lankan roots, whether you were
born in Sri Lanka or heard of your motherland from your parents, know that to
us, you are all Sri Lankans.
Your country is proud of your success. We understand why you may have lost
faith in our motherland. Know that I am grateful for every effort that any of you
take, even from afar, to help our country.
We invite you, one and all, to come back and see for yourself how much Sri Lanka
has changed. We invite you to contribute your expertise, your talent and your
perspective to our island nation, whether in the private, public or non-profit
sectors. Join us, and work with us to accomplish a level of success that we can
only all achieve together.
Majority of our citizens voted last year to chart a new course, to unite to rebuild
our country and reach the full potential of our citizenry. For the first time in
history, all of Sri Lanka, from north to south, and east to west, have united behind
a common purpose. Religion, race, gender, class and age no longer divide us. That
is one thing I can promise about the people of Sri Lanka: The people will never
again be divided against each other. The people will never again be fooled by
those who seek to turn us against each other for their own political or personal
gain.
Public Representatives and officials of our Government all have a common
objective. Similarly the thousands of hardworking, dedicated, and patriotic
public servants who have joined us to make a difference also have a collective
objective. We will never tire. We will never waver. We will not compromise on
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our principles. We will never ever let you down. We will lead by example, and
raise all Sri Lankans up together. Together we will all prosper. We will all be
proud of each other and of the beautiful, sacred island we call home.
Finally, I want to express my gratitude to the officials at the Ministry of Finance,
especially the Secretary to the Treasury Mahinda Siriwardana, who worked
tirelessly for weeks to finalize the budget. I expect further cooperation from the
officials at the Treasury to successfully implement the budget proposals in time
to take forward the economic programme of the Government.