President Anura Kumara Dissanayake says due to the mismanagement of public finances by previous administrations, the country had fallen into bankruptcy and is currently operating under a probationary period of the International Monetary Fund (IMF) program.
Given this situation, he emphasized that the 2025 Budget has taken the initial steps towards building a strong and stable economy.
The President made these remarks while participating in the Post-Budget Forum 2025 organized by the University of Colombo Master of Business Administration (MBA) Alumni Association held in Colombo today (Feb 19).
President Anura Kumara Dissanayake stated that the government aims to utilize the three-year debt moratorium granted through debt restructuring effectively and implement proper economic management to regain debt repayment capacity by 2028.
The President further noted that while many countries in the world have taken decades to recover after facing bankruptcy, Sri Lanka is expected to recover in a significantly shorter period.
Highlighting that this year’s budget proposes to increase government revenue to 15.1% of the Gross Domestic Product (GDP), the President emphasized the government’s commitment to prioritizing expenditures based on identified national priorities.
The President noted that this year’s budget focuses on expanding the economy by driving economic activities to rural areas and integrating citizens as stakeholders in the economy, expressing confidence that this approach would enhance the economic benefits available to the people.
“The government plans to reintegrate marginalized groups into the economy by establishing small economic units at the village level. As a result, the country aims to foster a surge in Small and Medium-scale Enterprises (SMEs),” he said.
Highlighting the government’s commitment to supporting industries, the President noted that reducing production costs would ultimately provide relief to consumers.
“To uplift the nation from rural poverty, the highest budget allocation this year has been directed towards education. This investment aims to restructure both human and physical resources within the school system, transitioning from a linear education model to a more diversified, multi-directional approach.
“The budget also prioritizes public expenditure management. Given the high costs associated with delivering public services, the government intends to conduct a comprehensive review of state institution expenditures,” he said.
President Dissanayake stressed the importance of maintaining a corruption-free political authority and underscored that fostering a culture where bribery is rejected is a collective responsibility of the citizens.
“To establish an export-driven economy, the government plans to sign new trade agreements and anticipates higher export earnings this year. Additionally, the current administration is focused on developing a port-centric economy. The budget has placed special attention on establishing an efficient transhipment hub.
“Tourism promotion initiatives will be further strengthened through City Branding programs, with plans to develop key cities such as Anuradhapura, Yapahuwa, and Jaffna as major tourist destinations,” he explained.
President Anura Kumara Dissanayake also emphasized the need to leverage the country’s diplomatic service to expand economic opportunities for Sri Lanka.
The event was attended by the Chairman of the Ceylon Chamber of Commerce & Senior Adviser to the President on Economic Affairs and Finance, Duminda Hulangamuwa, the President of the University of Colombo Master of MBA Alumni Association Suraj Radampola, along with several experts from academia and the business sector. (Newswire)