Highlights of the annual budget presented by Sri Lanka vpresudent Anura Kumara Dussanayake on Monday,Feb.1
Legal Reforms:
A new Act on the “Exchange of Information between State Institutions” is set to be introduced to enhance the efficiency of public services and ensure the proper collection of state revenues.
New legislation to be introduced to safeguard the rights of the investors and provide a conducive environment for foreign investment.
A new legal framework to be introduced to ensure the effective management of state-owned business enterprises, thereby creating those enterprises free from political influence and enable them to operate as commercially driven institutions that provide high-quality goods and services to the public.
Public–Private Partnership Investment Management Act to be introduced, intended to encourage foreign and domestic private investments in collaboration with the public sector.
A new Statistics Act will be introduced to replace the long-standing legislation governing population statistics and Census in Sri Lanka, incorporating updated methodologies and concepts.
New legislation for management of Government Valuation Department.
Government to introduce new legislation for non-financial asset management.
Govt to introduce a public procurement law as a timely necessity.
The government to introduce a new law, “Micro Finance and Credit Regulatory Authority Act,” to address shortcomings of existing Micro Finance Act No. 6 of 2006.
Government to amend the Paddy Marketing Act.
Rs. 750 million allocated for waste management programmes.
Rs. 5 billion allocated for the development of rural roads and bridges in the Northern Province.
Public sector salary increase:
Pensions for all pensioners who retired before 01.01.2020 will be revised in three phases, based on the salary scales applicable for the year 2020, as per Public Administration Circular No. 03/2016.
The minimum monthly basic salary of government employees to be increased by Rs. 15,750, from Rs. 24,250 to Rs. 40,000.
The existing 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 minimum annual salary increment for the public sector will be increased from Rs. 250 to Rs. 450.
The total cost for the increment is estimated at Rs.325 billion while this is expected to be implemented in stages from 2025 to 2027.
Rs. 5 billion to be allocated for the government’s “Clean Sri Lanka” programme.
Rs. 4,268 million to be allocated to develop estate sector housing.
Transport:
Measures to introduce a coordinated scheduled for SLTB and private buses.
100 new luxury buses to be imported and deployed for passenger transport under a new entity called ‘Metro’.
Rs. 20 billion to be allocated for the repayment of SriLankan Airlines’ debt and interest in 2025.
The compensation provided for the loss of life due to natural disasters will be increased from Rs. 250,000 to Rs. 1 million.
Rs 100 million to be allocated for the development of the Jaffna Library including computer facilities. Rs 200 for the development of other public libraries.
Apart from the oil storage tanks given to the Ceylon Petroleum Corporation (CPC) and Lanka IOC, 61 oil storage tanks in the Trincomalee tank farm will be developed as a joint venture with international firms, aimed at entering the international fuel market.
Govt to allocate Rs. 232.5 billion for ‘Aswesuma’ welfare benefits.
The senior citizens’ allowance to be increased from Rs. 3,000 to Rs. 5,000 and to be implemented from April 2025.
The allowance for kidney patients and disabled patients to be increased from Rs. 7,000 to Rs. 10,000.
President announces that an Rs. 5,000 allowance will be provided for orphaned children.
Rs. 05 billion to be allocated for the purchase of paddy in the Maha season.
Paddy Marketing Board Act to be amended.
Rs. 500 million to be allocated to cultivate 16,000 acres of coconut within the northern coconut triangle.
Rs. 2.5 billion to be allocated for the development of the dairy industry.
He also said that a new legal framework for digital payments will be introduced.
Rs. 3,000 million will be allocated for digital development.
A digital ticketing system for tourists will be introduced.
Govt hoping to achieve a primary surplus of 2.3% in 2025.
USD 19 Billion expected from export of goods and services in 2025.
The Economic Transformation Act will be amended.
2025 Budget Proposals on expanding export of goods and services:
– National Tariff Policy and a new Customs Act will be introduced.
– A national export development plan will be implemented from 2025 to 2029.
President AKD said that 4% of the GDP will be allocated for capital expenditure and funds will be allocated to senior citizens’ interest rates.
Budget allocations for health and education will receive significant increases, says the President.
He said the government aims to develop the country in a way that enables it to repay debt when repayment commences in 2028.
President Dissanayake stated that the GDP growth for the year 2025 is expected to be approximately 5%.
He stated that by the end of 2024, the new government was able to maintain the foreign exchange reserves at USD 6.1 billion even after making payments related to the debt restructuring.
Commencing his inaugural Budget Speech, President Dissanayake said that in 2022 Sri Lanka faced its worst and most complex social, economic and political crisis in history since the independence which reached its peak in 2022. The reasons for the crisis are historical and structural, he said.
President Anura Kumara Dissanayake commenced delivering the 2025 Budget Speech in the parliament, a short while ago.
The Cabinet of Ministers had granted approval for the Budget 2025 to be presented to the Parliament during the Cabinet meeting held this Monday morning Feb. (17)
