Budget 2025 : Live updates

Budget Summary –

Total revenue & grants – Rs. 4,990 billion

Total expenditure – Rs. 7,190 billion

Budget deficit – Rs. 2,200 billion

Concluding his budget speech, President Anura Kumara Dissanayake said the government will ensure justice for every rupee of taxpayers and vowed to create a society where everyone is afraid to take bribes.

Emphasizing that this Government will not tolerate corruption among its ranks, the President said those who attempt to receive bribes should be afraid.

The President says the liberalization of motor vehicle imports, which opened on 01 February 2025, is expected to deliver a bulk of the revenue gains for the year 2025.

President Anura Kumara Dissanayake has announced that the government has decided not to pursue the Imputed Rental Income Tax agreed by the previous administration.

The President says the use of Point-of-Sale (POS) machines across businesses, especially in VAT-registered enterprises, will be implemented as a key initiative to facilitate digital transactions and reduce cash dependency.

President Anura Kumara Dissanayake says the tax policy measures are expected to enable Sri Lanka to meet the revenue targets of 15.1 per cent of GDP in 2025.

He further said steps will be taken toward digitalizing tax systems to reduce leakages and enhance transparency while minimizing human interactions in tax administration.

The President says pension increases for all retirees who retired before 01 January 2020, will be implemented in three phases.

President Anura Kumara Dissanayake announced that the government will intervene to increase the daily wages of plantation workers to Rs. 1,700.

The President says Employers’ Associations have already agreed to increase the monthly Minimum Wage for Private Sector workers from Rs. 21,000 to Rs. 27,000 in April 2025.

He further said the wages will be increased to Rs. 30,000/- from 2026.

President Anura Kumara Dissanayake announced that the government had decided to increase the salary for public sector employees, raising the basic salary from Rs. 24,250 to Rs. 40,000.

He said the salary hike will be implemented in three phases.

President Anura Kumara Dissanayake says recruitment, promotions, and transfers in the public service will be strictly based on qualifications and skills, devoid of political influence.

Announcing that Rs 10,000 million has been allocated to fill essential vacancies in Public Service, he said the government will implement a strategic recruitment plan to hire 30,000 individuals in essential public service roles starting this year.

The government has allocated Rs. 1,000 million for the renovation of housing schemes for low-income families.

The President says Rs. 1,500 million will be allocated for resettlement.

He further said a housing scheme will be constructed in Kottawa, with funds from the Chinese government, for artists and journalists making special contributions to the country.

The President says a “National Cultural Festival” will be initiated in November and launched in December.

The festival aims to attract the highest number of tourist arrivals to Sri Lanka and will be organized with the assistance of the private sector.

The Government has allocated Rs. 640 million to address the elephant-human conflict. The President says Rs. 300 million is allocated for the improvement of approximately 5,611 km of electric fencing, with 1,456 km identified for refurbishment.

He further said Rs. 240 million has been allocated as compensation for victims of the elephant-human conflict.

President Anura Kumara Dissanayake says Rs. 5,000 million will be allocated for the Clean Sri Lanka program.

The government has allocated Rs. 4,267 million for the development of estate housing and infrastructure development.

The President says an additional Rs. 2,450 million is allocated for Vocational training, Livelihood Development and Infrastructure Development of the Malayagam Tamil youth and Rs. 866 million for smart classrooms for schools in the estate community.

The President says Rs. 3,000 million will be allocated for the procurement of 100 low-floor buses.

He further said a modern and comfortable fleet of technologically advanced buses will be introduced on a pilot basis.

He added that 100 air-suspension, low-floor, comfortable buses will be deployed along three main routes within Colombo city.

In addition to that SLTB will add 200 low-bed passenger buses for its fleet through its own funds, under the initiative ‘Metro’.

The President says Rs. 500 million will be allocated to rehabilitate old railway passenger coaches.

Rs. 250 million will be allocated for 2025 to the Department of Railways to initiate building new coaches.

The President says national carrier, SriLankan Airlines will receive Rs. 20 billion for Debt Settlement.

He said the Government would sign an agreement with 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 President said SriLankan Airlines would be fully responsible for ensuring operating profitability once these legacy debt service costs are settled by the Government.

President Anura Kumara Dissanayake says Rs 15 billion is to be allocated to offer higher interest rates for senior citizens.

Individuals above 60 years will be eligible for one-year fixed deposits of up to Rs. 1 million with an annual additional interest rate of 3 per cent, above the prevailing interest rates in the market.

The President says Rs. 1,000 million will be allocated to supply packages of dry rations through Sathosa outlets for the April festive season.

The government has proposed a more generous duty-free allowance for Sri Lanka’s migrant workers as they return to the country.

Taking into consideration the high rate of suicides among young persons, President Anura Kumara Dissanayake says Rs. 250 million will be allocated to implement a medium-term programme to expand the awareness and counselling services for students and adolescents.

He further said the programme will be conducted by the Ministry of Health in collaboration with the Ministry of Education

The President says the compensation given to victims of natural disasters will be increased from Rs. 250,000 to Rs. 1 million.

President Anura Kumara Dissanayake says the monthly allowance for kidney patients will be increased from Rs. 7,500 to Rs. 10,000.

He further said the allowance for low-income senior citizens will be increased from Rs. 3,000 to Rs. 5,000 and will be implemented from April this year.

The President says Rs. 2,500 million will be invested for the development of the dairy sector in the country.

Stating that the Northern Coconut Triangle has been identified, the President says Rs. 500 million will be allocated to cultivate 16,000 acres of coconut within the Northern Coconut Triangle.

The President has announced that Rs. 232.5 billion will be set aside for Social Welfare (Aswesuma).

The government has decided to develop sixty-one oil tanks in Trincomalee in collaboration with international partners.

The President says, apart from the oil tanks given to the Ceylon Petroleum Corporation (CPC), 61 oil storage tanks will be developed as a joint venture with international firms, aimed at entering the international fuel market.

The President says the Paddy Marketing Board Act will be amended to regulate paddy and rice.

Rs. 5000 million has been allocated to purchase paddy during the Maha season.

President Anura Kumara Dissanayake says the proposed Sri Lanka Electricity (Amendment) Act will be introduced soon.

Students from low-income families who have passed the Grade 5 Scholarship examination will receive an increased allowance of Rs. 1,500 from the existing Rs. 750.

President Anura Kumara Dissanayake says Rs. 100 million has been allocated for upgrades to the Jaffna Public Library.

Rs. 200 million will be allocated for the development of libraries in other parts of the country.

The Government has allocated Rs. 500 million for the development of sports schools in five provinces.

President Anura Kumara Dissanayake says the Mahapola Scholarship allowance will be increased to Rs. 7500 from the existing Rs. 5000.

The President says Rs. 135 billion has been allocated for the development of Sri Lanka’s university system.

The Government has allocated Rs 185 billion for the purchase of drugs and medical equipment.

Rs. 200 million has been allocated to establish a care and treatment centre at the Lady Ridgeway Hospital for Children (LRH) for children with neurodevelopment disorders including autism.

The President says Rs. 7,500 million will be allocated to provide Nutritional Support for Pregnant Mothers.

President Anura Kumara Dissanayake says Rs. 604 billion will be allocated for the Health Sector in 2025.

The President says Rs. 1,000 million will be allocated to Improve School Infrastructure.

Rs. 500 million has been allocated for the project to review the school system.

President Anura Kumara Dissanayake says Parliamentarians will not be provided with vehicles this year as money has not been allocated for this purpose.He further said MPs will also not be granted vehicle permits this year.

The President says all luxury vehicles belonging to the government will be auctioned in March this year.

President Anura Kumara Dissanayake says a State Development Bank will be established for the benefit of the Small and Medium-scale Enterprises (SMEs) under the existing state banking system.

The President says the government will promote new tourism destinations in Sri Lanka.

He said Rs. 500 million will be allocated to develop attractions like Anuradhapura and Yapahuwa, while these sites will be branded and marketed as key cultural and historic destinations.

The President further said a digital ticket system will be introduced for tourist attractions.

President Anura Kumara Dissanayake says the Sri Lanka Unique Identity Project (Digital ID) will be a key part of the country’s economic digital development.

Stating that ensuring the security and trustworthiness of digital systems will be a priority, he further said new laws will be introduced, and existing ones will be strengthened to certify data privacy.

The President says a Digital Economic Authority will be established as Sri Lanka transitions toward a phased cashless economy.

He further said Rs. 3000 million will be allocated for digital development.

President Anura Kumara Dissanayake says the government is working on a long-term solution to port congestion.

Stating that a national quality management system is required in the country, he said the government was allocating Rs. 750 million this year to achieve this goal.

The President says the government will allocate Rs. 1,000 million to upgrade scanning services at the Colombo Port and Bandaranaike International Airport in Katunayake.

President Anura Kumara Dissanayake says government-owned lands will be leased for productive economic activities.

The President says Public, private, and privately managed economic zones will be established to attract more investments in Sri Lanka.

He further said the Economic Transformation Act will be amended to encourage budding investors.

President Anura Kumara Dissanayake says a National Tariff Policy will be introduced.

He said the new tariff structures will be established to create a simple, transparent, and predictable tariff framework.

The President says the government will introduce a new Customs Act by amending the existing legislation.

President Anura Kumara Dissanayake says the 2025 – 2029 National Export Development Plan will be introduced.

He further said the government will focus on Economic Diplomacy.

The President says the government projects goods and services exports to reach US$19 billion in 2025, supporting economic growth.

President Anura Kumara Dissanayake says Sri Lanka will focus on transforming the economy and prepare to resume debt repayments from 2028.

The President says the government’s intention is to manage the limited tax funds prudently and responsibly.

The President says the highest allocation ever has been made for the education and health sectors.

He said 4% of the GDP will be allocated for capital expenditure and money will be allocated for Senior Citizen’s interest.

Assuring that steps will be taken to ensure economic stability for the public, the President says Financial Allocations have been prioritized in the 2025 Budget and Public Funds will be used in a manner that will benefit the public.

President Anura Kumara Dissanayake says a 5% Economic Growth is expected for 2025.

He further said the government has been able to maintain the foreign reserve at USD 6.1 Billion at the end of 2024 even after servicing debt of USD 570 million, with respect to the debt restructuring.

President Anura Kumara Dissanayake has commenced presenting the Appropriation Bill for the 2025 financial year to Parliament today, making his inaugural budget speech.

The Appropriation Bill for the 2025 financial year outlines the government’s proposed expenditure for the year from 01 January 2025 to 31 December 2025.

The total estimated government expenditure for the said period for 2025 has been set at Rs. 4,218 billion.