Budget 2025: Roadmap to Economic Stability and Growth
Sri Lanka’s Budget 2025, the first budget of the new government under President Anura Kumara Dissanayake, targets economy stabilisation, debt management, and inclusive growth. The budget envisions revenue mobilisation, improved tax administration, and digitalisation for expanding the tax base and strengthening compliance
A key focus is on sustainability, achieved through management of deficits, lowering debt and raising revenue.
The main aim is on sustainability, achieved through deficit control, debt reduction, and revenue growth, officials said.
The government prioritises equitable economic distribution, infrastructure development, public sector reforms, and alignment with IMF policies. Preference is also accorded to exports, the digital economy, small and medium enterprises (SMEs), education, and sustainable development as drivers of economic growth.
The Treasury will still maintain state expenditure at 20 per cent of GDP from 2025 and onwards through prudent fiscal management while optimising resource allocation for maximum public good.
The second phase of economic transformation will be initiated, such as trade and investment reforms to improve the ease of doing business. These reforms are necessary in drawing non-debt-creating flows and long-term debt sustainability.
The government acknowledges the value of broad economic participation and is implementing legislative and institutional reform to promote fiscal prudence, transparency, and good governance.
The 2025 budget is devised to reach grassroots levels with urban-based economic advantages so that benefits can be equally distributed among all the provinces.
Additionally, improvements in public transportation, decentralised funding mechanisms, and welfare distribution strategies will support vulnerable communities more effectively.
A new ‘Tariff Policy’ will aim at tax reductions or exemptions on production inputs to protect industries domestically.
The budget allocates Rs.97.5 billion for public sector salary increments of up to Rs.7,500 per month, subject to financial constraints. Any additional increase will be determined by President Dissanayake in his capacity as Minister of Finance.
The Public Services Trade Union Federation has asked for a minimum salary of Rs.50,000 for private sector and semi-government staff and a rise in salary of a minimum of Rs.20,000 for public sector staff. It has also asked for the reintroduction of the state sector pension scheme, which was taken away in 2016.
A comprehensive fiscal roadmap will be introduced, including stable tax policies, digitised tax administration, automated tax audits, and linked tax files through digital IDs. Additional measures include eliminating para tariffs, streamlining trade through a national single window, expanding broadband access, and introducing unique digital IDs for SMEs and agriculture. Plans also include training 200,000 IT professionals by 2023 and enforcing cyber security laws.
Total state expenditure for 2025 is estimated at Rs.4,218 billion, of which Rs.2,898 billion is allocated for recurrent expenses and Rs. 1,320 billion for capital investments. Debt servicing remains a significant component, with Rs.4,617 billion allocated from the Consolidated Fund.
Revenue Generation: Aim to increase revenue to 15.1 per cent of GDP of, approximately Rs. 3.9 -4.1 trillion. Expenditure Management: Cap expenditures at 2 per cent of GDP, around Rs.4.2 trillion.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!