In response to criticism by opposition groups on the new Economic Transformation Bill, State Minister for Finance Shehan Semasinghe outlined several key areas the government hopes to address with the new legislation.
1. Debt burden against GDP
The bill proposes reducing the country’s debt burden from 128% of the Gross Domestic Product in 2022 to 95% by 2032. Similarly, the government’s gross money supply, which was 34.6% in 2022, should be reduced to 13% by 2032. The foreign debt servicing ratio, 9.6% in 2022, is targeted to drop to 4.5% by 2027. The government is committed to embedding these goals into the country’s legal framework to establish a sustainable economy.
2. Economic growth projections
The bill aims to achieve an economic growth rate exceeding 5% after 2027, recovering from a decline to -7.8% in 2022.
3. Unemployment
Unemployment which was 4.7% in 2022, is expected to be maintained below 5% by 2025.
4. Labour force participation of women
In 2022, the labour force participation rate for women was 32.1%. The government’s goal is to increase this to at least 40% by 2030 and 50% by 2040.
5. Foreign Direct Investment (FDI)
Foreign Direct Investment, which was 1.6% in 2022, is expected to reach at least 5% by 2030. The government aims to make direct investment account for 40% of the country’s exports of goods and services by 2030. (Newswire)
