President reveals how Govt “managed to stabilise the economy within a short period”

March 30, 2025 at 5:42 PM

  • The government ensures that every rupee of taxpayers’ money is spent Prudently for the benefit of the people
  • A significant investment has been allocated this time for village development.
  • Grant political authority to the Pradeshiya Sabha for this purpose.

President Anura Kumara Disanayake stated that the present government ensures every rupee of taxpayers’ money is spent prudently for the benefit of the people.

The President made these remarks while attending a public gathering held yesterday (29) in the Tissamaharama area of the Hambantota District, as part of the victorious people’s rally series, “Jaya Niyathai Gama Apitai” (“Victory is Certain – The Village is Ours.”)

Addressing the gathering, President Disanayake further stated;

“Tissamaharama has always brought us great victories. We have no doubt about Tissa. Now, we have initiated a significant transformation in Sri Lankan politics. Power has shifted from the old faction, which governed the country for a long time, to a new group representing the common people. This is not an ordinary occurrence. The first step in this shift was taken during the last presidential election. In the general election, we secured the highest number of parliamentary seats in Sri Lanka’s history. We are confident that we will receive an even greater mandate in the local government elections. We believe that the people will not allow this transformation to be reversed. Moving forward with this change is the only path for the people of our country.

When we assumed power, our country was not economically stable. Just two and a half years ago, Sri Lanka was in a state of severe bankruptcy. Due to the weaknesses of the previous rulers who governed the country for a long time, we faced the worst crisis a nation could endure. The most devastating economic downfall for a country is bankruptcy. We became a nation isolated from the world, unable to repay our debts. Even a hundred years from now, when books are written about Sri Lanka’s economy, the economic crisis of 2021-2023 will be recorded in history. It will be remembered as a time when the state was unable to repay its debts, unable to secure dollars to import fuel, unable to find funds to import medicines and faced a shortage of funds to import gas. It was a period when the people took to the streets and ousted the rulers and the head of state had to flee for safety.

When a country goes bankrupt, it typically takes around ten years to recover. Many nations that have faced such crises have taken a similar duration to regain stability. However, we have managed to stabilise the economy within a short period.

Investors need confidence to come to Sri Lanka. Over the past five years, investors have stayed away from the country. At present, investors are engaging in discussions with the government.

We are currently in talks regarding the Hambantota oil refinery project, the largest investment in Sri Lanka, which is now in its final stages. On the 5th, with the participation of the Indian Prime Minister, the foundation stone will be laid for a power plant in Sampur. Investments have already begun to flow in. A 100-megawatt solar power plant is planned in Siyambalanduwa. Investments have also been made for a wind power plant in Mannar. A new storage terminal is planned for construction in Kerawalapitiya. Land suitable for investment in Colombo is being identified and will soon be publicly announced for investors. Step by step, investors have started focusing on Sri Lanka again.

During the economic crisis, investors who were constructing the Katunayake airport expansion abandoned the project. Now, within the next two months, we will complete that project. The investors who were developing the Kadawatha-Mirigama expressway also withdrew, but we have now resumed construction. The government has successfully restarted abandoned projects and investments. The current administration has managed to stabilise the exchange rate at LKR 300 per US dollar. Previously, the exchange rate fluctuated overnight. Interest rates have been stabilised, and the stock market has seen significant growth, indicating economic stability. Following debt restructuring, we have already repaid over USD 500 million without affecting the exchange rate.

For over five years, vehicle imports were banned. The vehicle market has now been gradually reopened. All these developments signal positive economic prospects. Over the past six months, the government has been able to stabilise the economy. Moving forward, we cannot afford to foster mistrust in the government.

The financial stability we have regained is now being redirected to benefit the people. For nearly four to five years, no new employees were recruited into the public sector. We have now decided to recruit 30,000 new employees into the public service. Funds have been allocated in this year’s budget for this purpose. At present, 15,700 vacancies have been identified and a committee has been appointed to identify the remaining vacancies. There is a shortage of Technical Officers (TOs) in local councils, causing difficulties in road construction due to technical issues. The economic stability we have achieved is now being translated into benefits for the people. Therefore, after five years of no recruitment, we are resuming hiring for the public service this year.

The basic salaries of public sector employees have been significantly increased, with LKR 110 billion allocated to cover the increased wages. It is essential to safeguard our professionals. Pensioners have also been granted salary increments. Fertiliser subsidies provided to paddy farmers have now been extended to farmers cultivating other crops, with cabinet approval. For the first time in Sri Lanka’s history, financial assistance has been provided to schoolchildren for purchasing school supplies. This government ensures that funds are safeguarded and utilised for the benefit of the people.

Allowances for kidney patients have been increased, Mahapola scholarships have been raised, and funds allocated for school meal programmes have been expanded. The government is taking all necessary measures to support the people. Unemployment allowances have been increased, and from June onwards, financial assistance will be provided to 400,000 individuals who currently do not receive unemployment benefits but are in need. Every schoolgirl will receive eight sanitary napkins per month, with funds allocated for this initiative. Our welfare programmes have been further strengthened.

This government is committed to ensuring that the benefits of economic recovery reach the people and that all citizens receive the support they need.

Plans have been formulated to develop the transport system. There are proposals to integrate both state-owned and private bus services. A standardisation initiative for buses is being introduced, with LKR 3 billion allocated for the importation of buses meeting the new standards. Efforts are being made to establish a comfortable and efficient public transport service.

A budget allocation of LKR 650 billion has been set aside for the healthcare sector. These funds will be used to procure equipment, import medicines and construct buildings. Every family should have access to a designated family doctor and a pilot project is being developed to facilitate this. This initiative will eliminate the need for individuals to visit multiple hospitals and doctors. A structured programme will be established to ensure that patients follow the recommendations of their family doctor.

A new curriculum is set to be introduced for education in 2026. After completing their Grade 9 examination, students will receive guidance on the best career paths based on their abilities. The financial burden on families for healthcare, education and transport will be reduced, with the government assuming responsibility for these costs. The money saved by families can then be used for other purposes, such as leisure activities or travel.

No previous government has taken responsibility for incarcerated individuals. Consequently, a programme has been developed to assess their vocational skills and provide them with vocational training certificates, thereby facilitating employment opportunities. Children in orphanages will receive a monthly allowance of LKR 5,000, with LKR 3,000 of this amount being mandatorily allocated to a fixed deposit. Additionally, every child who gets married will receive LKR 1 million from the government for housing construction. This administration is committed to ensuring that no individual is left behind and is dedicated to enhancing public services.

Special attention is being given to the tourism sector. The year 2025 is expected to witness the highest number of tourist arrivals in Sri Lanka. Plans are in place to improve the necessary infrastructure and expand tourist destinations. The goal is to make tourism a continually growing sector that significantly contributes to economic development. This year is also projected to record the highest exports of goods and services. It is anticipated that foreign remittances from Sri Lankan migrant workers will reach an all-time high in 2025. Additionally, this year is expected to generate the highest state revenue, with the Inland Revenue Department exceeding its monthly targets. Citizens are becoming more accustomed to paying taxes, and every rupee collected will be meticulously spent for the benefit of the public. This is the correct approach to nation-building, and the country is on a path of rapid progress.

The current administration has eliminated corruption and ensured justice is served. The legal and judicial systems, including the Criminal Investigation Department and the Attorney General’s Department, are functioning effectively. Presently, three ministers and a police chief are in remand custody, while another minister and a police chief, who were previously in hiding, have re-emerged. Investigations are progressing efficiently, and legal proceedings are being conducted systematically to ensure successful prosecutions. All inquiries, including those into high-profile corruption cases, are advancing without obstruction. Only a government driven by national integrity can effectively combat corruption and uphold justice.

A total of LKR 1.4 trillion has been allocated as capital expenditure for the construction of roads for the benefit of the public. The allocated funds must be utilised correctly and the projects completed within the next eight months. In the past, there was a lack of funds for development; however, today, while funds are available, there is a shortage of workers. To address this, financial provisions have been made for new recruitments into the public sector. Additionally, funds have been allocated for the completion of partially constructed expressways. Surplus funds will be redirected for the benefit of the people. The public sector must improve efficiency and deliver services effectively.

For the successful execution of these projects, strong political leadership is essential at the local level. Just as the President and Parliament govern at the national level, local government authorities must oversee regional projects. A local government body that collaborates with the central government is crucial. Without this coordination, progress will be hindered, akin to a cart being pulled in opposite directions by two oxen. Leadership at the village level is essential for implementing grassroots initiatives.

In June, proposals will be gathered for the upcoming budget, which is set to be presented to Parliament in November. To strengthen this process, granting local government power to the National People’s Power (NPP) will ensure the effective formulation of budget proposals. By supporting the NPP, citizens will not only contribute to the party’s success but also play a role in achieving national progress.”