Full Interim Budget Speech – 2022

The interim budget was presented to Parliament this afternoon by President Ranil Wickremesinghe in his capacity as the Finance Minister. The full speech is as follows: 

Honorable Speaker,

The Interim Budget is being presented today to the Parliament, in order to prepare 
the basic foundation for changing the economic trajectory of our country. This is 
basic to the formulation of a national economic policy in accordance with the new 
world order. Based on this foundation, the Budget for the year 2023, will initiate 
the process of creating a new economy. For the process of creating a new economy, 
I plan to present a comprehensive set of proposals in the Budget 2023. 
In presenting the Interim Budget, I wish to draw your attention to four aspects.
1. Economic Crisis
1.1 On many occasions, I have pointed out the extent and depth of the economic 
crisis that we are facing. We have not fallen into such an economic abyss in 
our recent history. Some people in our country do not yet have a real 
understanding of its severity. When pointing out the difficulties and 
hardships, they are viewed with sarcasm. They think like crabs that happily 
lay in the water that is on the fire, until it reaches boiling point. However, 
there are also those among us who think in a more responsible manner, 
having understood the gravity of this situation, and resolutely seek to battle 
in dousing the fire. 
2. Causes of the Economic Crisis
2.1 It is a widespread slogan these days to claim that the country has deteriorated 
for 74 years after independence. Those who engage in chanting these slogans, 
earlier said that it was the colonial rulers who destroyed the country. This is 
the reality of slogan-led politics, they put forward slogans at different points 
in time for their own benefit. Engaging in rhetoric and politicalized economic 
2
policies for their own benefit rather than the country, are the main reasons for 
the collapse of our economy.
2.2 Due to these short-sighted economic practices, the country’s progress has 
been hampered from time to time. Many of those setbacks occurred in the 
name of the citizens who also accepted those policies without any criticism.
2.3 From the time the Government nationalized businesses, most of the tax 
revenue of our country has been spent to cover their losses. Funds which have 
to be utilized for the necessities of the community, are being wasted on 
keeping these companies afloat. Government should be formulating policies 
and implementing them. However, presently the Government does 
everything and the people also expect such from the country’s administration.
2.4 We have not been following appropriate policies, not only in relation to state 
enterprises, but also in attracting foreign investments. Continuously there has 
been no proper use of the nation’s resources, that too in the guise of seeking 
to protect state assets. 
3. Solution to the Economic Crisis
3.1 In order to solve this economic crisis, one of the basic tasks that we need is to 
extricate from our traditional political perspectives and impartially appraise 
the reality of the ground situation in the context of the global environment.
3.2 I wish to quote a recent statement made by Mr. Sunil Handunneththi of the 
JVP “The Government should make policies. The Government does not have 
a role to engage in commercial ventures.”
3.3 If we can nourish our minds with creative thoughts, according to the current 
trends of the modern world, then we can solve the economic crisis.
3
4. Method of Solving the Crisis
4.1 This crisis will not be solved by accusing one another, nor by faulting the past. 
It can only be solved by adopting short- and long-term plans.
4.2 In this context, we are now adopting the short-term measures. Negotiations 
with the International Monetary Fund (IMF) have successfully reached its 
final stage. Discussions on debt restructuring will be held with the main 
countries that provide loan assistance to our country. The United Nations in 
collaboration with leading international organizations, is launching a 
programme to ensure food security. The process of providing daily needs like 
gas, electricity and fuel without a shortage has been initiated. Schools have 
opened, and the universities are commencing their academic activities. 
4.3 All this reflects that, we are on the correct course in the short term for 
recovery.
4.4 However, we cannot be complacent. We should prepare a National Economic 
Policy for implementation continuously at least over a period of 25 years. As 
I mentioned at the beginning, this Interim Budget forms the basic foundation 
for the National Economic Policy, which is envisaged to be established 
through the 2023 Budget.
4.5 This Interim Budget speech, the IMF agreement and the Budget 2023 will 
set the framework for Economic Stabilization and Revival. Within it, we 
will set the Road Map. 
4.6 Once the discussions with the IMF are concluded, I expect to provide the 
information on the same to the Parliament. 
4.7 We briefly discussed the economic crisis, the cause of the economic crisis, the 
solution to the economic crisis and the method of solving the economic crisis. 
Now, I would like to present the Interim Budget and its proposals for your 
attention.
4
5. Macro-fiscal Framework
5.1 Our fiscal stabilisation programme envisages government revenue increasing 
to around 15 percent of GDP by 2025 from the 8.2 percent of GDP as at end 
2021. 
5.2 The government is targeting a primary surplus more than 2 percent of GDP 
in 2025 and expects to improve upon this level thereafter. 
5.3 We aim to reduce public sector debt from around 110 percent of GDP as at 
end 2021, to no more than 100 percent of GDP in the medium term.
5.4 It is expected that inflation will be brought back under control to a mid-single 
digit level in the medium term. 
5.5 In line with this, interest rates are also expected to reach a moderate level 
gradually.
5.6 Once macroeconomic confidence is re-established and foreign exchange 
reserves are replenished through foreign financing, the adverse pressure on 
the exchange rate is also expected to abate.
5.7 With the implementation of a series of growth enhancing structural reforms, 
the medium-term economic growth is expected to return towards 5 percent.
6. Main items in the Interim Budget
6.1 The Interim Budget includes the provisions to accommodate the policy 
package introduced in January 2022, provisions for strengthening social
safety net programmes, additional cost due to increased interest payments in 
2022, receipts of foreign assistance through repurposed projects by the World 
Bank and the Asian Development Bank (ADB), provisions for financing 
obtained through the Indian Line of Credit and increased cost of fertilizer 
subsidy, among others. 
6.2 As I promised earlier, we have directed around Rs. 300 billion out of capital 
expenditure and less priority spending allocated in the original budget 2022 
for above purposes, including the provision of relief to those who are affected 
by the economic crisis. 
5
7. Revenue Proposals
7.1 A number of tax reforms pertaining to Income Tax, Value Added Tax (VAT), 
Telecommunication Levy and Betting and Gaming Levy have been already 
approved to be implemented. Some of these tax proposals have already been 
implemented.
7.2 In addition, the VAT rate will be increased to 15 percent from the current rate 
of 12 percent with effect from 1st September 2022.
7.3 Most revenue proposals introduced in May 2022 will be effective from 1st
October 2022. 
7.4 The implementation of these proposals will help increase the revenue. It will 
enable to gradually reduce the quantum of monetary financing for 
government expenditure. 
7.5 The revenue from the above proposals is also included under the revenue 
estimates presented in the amendments to the 2021 Appropriation Act. 
7.6 In addition, it is expected to present new revenue enhancing proposals aiming 
at Budget 2023.
8. Tax Administration
8.1 In our efforts to increase the revenue, tax administration must play a pivotal 
role in enhancing the tax collection efficiency, strengthening tax compliance 
and preventing tax avoidance.
8.2 In addition to the already existing requirements, I propose to introduce 
compulsory tax registration for all residents who are above 18 years of age 
without considering their annual income and tax-free thresholds. 
8.3 The government is committed to implement the recommendations in the 
Final Report of the “Presidential Commission of Inquiry into Sri Lanka Customs”. 
This will strengthen corporate, administrative, and operational processes of 
Sri Lanka Customs to discharge its responsibilities effectively and efficiently. 
6
9. Non-Tax Revenue
9.1 Measures will be taken to enhance non-tax revenue, including royalties
received for government assets. I also propose to take actions to attract foreign 
investors and/or technology holders to establish joint ventures with Sri 
Lankan partners for industrial investments with advanced technologies to 
ensure better utilization of our mineral resources and increase value addition 
without jeopardizing the interests of the national economy and the 
sustainable use of resources. 
10. Expenditure Management
10.1 At present, measures are being taken to develop a more prudent and 
evidence-based prioritisation mechanism for capital expenditure projects. 
Funding will be channelled to priority sectors such as education, healthcare, 
public transport, public service digitisation, and social protection.
10.2 The effective expenditure management needs better and strong supervision 
as well. Hence, I propose to introduce required laws to establish a system like 
Inspector General (IG) in the USA, tasked with making sure government
expenditure system is working well and in the way it is intended. The IG will 
be strongly empowered and will actively engage in protecting the integrity of 
the government by detecting and preventing fraud, waste, and abuse in 
government institutions. 
10.3 A comprehensive study of movable and immovable properties, including 
government owned buildings, lands and vehicles will be conducted with a 
view to optimise the utilisation and to identify potential real estate for income 
generating activities. 
10.4 Consolidation of identified Local Government Authorities
• There are 341 Local Government Authorities currently operating in the 
country consisting of 24 Municipal Councils, 41 Urban Councils and 276 
Pradeshiya Sabhas. While there are local government authorities which have 
ample revenue streams, there are also local government authorities which do 
not have sufficient sources of revenue. Therefore, in order to provide a more 
7
efficient public service and to facilitate efficacies in administration, I propose 
to merge selected Pradeshiya Sabhas with a Municipal Council or an Urban 
Council adjacent to them. 22 Pradeshiya Sabhas have been selected for this 
programme as the initial step. Details are given in the Annexure VII.
• In order to making services to be efficient and easier to the public, all the local 
government authorities should arrange to offer online services to collect the 
related revenues without any delay. Accordingly, the online revenue 
collection programme should be implemented in all local government
authorities before the end of 2022. 
10.5 It is important to review the activities of the project offices and project units 
that have been established for various purposes as these involve significant 
number of staff and high amounts of payments. Hence, I propose to appoint 
a committee to review whether the intended purposes of such offices and 
units have been met and whether it is necessary to continue such entities and 
submit recommendations to the Cabinet of Ministers within a period of 3 
months.
11. Public Sector Reforms
11.1 As a part of efficient expenditure management, I propose to rationalize the 
number of government employees. Already, we have allowed those who are 
willing to take no pay leave for 5 years or so and go abroad or engage in 
educational activities in the country. 
11.2 It has been observed that there has been increasing unrest among 
unemployed youth as the government had decided to raise the mandatory
retirement age of public sector employees to 65 years and that of semigovernmental employees to 62 years. Besides, it has also been reported that
the increase in the retirement age has restricted the promotional opportunities
available for many public sector and semi-governmental employees. 
• Accordingly, it is proposed to reduce the retirement age of public sector and 
semi-governmental employees to 60 years. Those who have been employed 
beyond 60 years of age at present in the government and semi government 
sectors will be retired as of 31.12.2022.
8
11.3 The Director General of Management Services will be tasked to conduct a 
work study covering the entire public service for the purpose of optimally 
obtaining services of the primary level employees in the government entities
and to submit the report to the Cabinet of Ministers within three months. 
11.4 The purchase of fossil fuel-based vehicles for public sector will be suspended 
from hereafter as a government policy.
• As per this policy, only electric-powered vehicles will be purchased for the 
use of the public sector in the future and the private sector will also be 
encouraged to use electric vehicles. 
• In purchasing vehicles for the public sector, suitable categories of vehicles are 
decided on the basis of the efficiency and prices of the vehicles. This proposal 
will be implemented step by step and will be completed by 01st January 2026.
12. National Security - 2030
12.1 As a geo-politically important country, Sri Lanka should work with everyone 
and design our defence policies accordingly to face the emerging realities. 
12.2 Hence, I propose to have a review on our defence strategy called “National 
Security - 2030” to achieve these objectives and to develop capabilities and 
knowledge of our security forces that would be required in the modern and 
evolving world. 
13. State Owned Enterprises
13.1 Another critical area of reform is the management of state-owned enterprises 
(SOEs). The major fiscal risks arise from a few key SOEs, particularly in the 
transportation (SriLankan Airlines) and energy sector (CEB and CPC). These 
entities face significant losses, negative equity (SLA/CPC), and large volumes 
of debt that is predominantly owed to the state banks, creating significant 
financial sector risk. 
9
13.2 Some of the state-owned enterprises have been making losses on continuous 
basis due to issues of structural nature existed for some time. As these losses 
cannot be met endlessly from the General Treasury, attention should be paid
to find alternative mechanism make them effective. Accordingly, it is 
proposed to establish the “State-Owned Enterprise Restructuring Unit” to 
facilitate restructuring of government owned business entities. I propose to 
allocate Rs. 200 million to implement this proposal.
13.3 In addition, I propose to re-activate the Statement of Corporate Intent (SCI) 
process for key 50 SOEs, excluding CEB, CPC and Sri Lankan Airlines, as they 
are under different efforts to restructure, to closely monitor the set targets. 
13.4 These difficult but necessary measures pertaining to SOEs will no doubt be 
challenging to address, but failing to do so would create catastrophic risks, 
particularly for financial sector stability, and will entail even higher taxation 
burdens on the public in the future.
14. Fiscal legislative/oversight framework
14.1 The fiscal reforms that have been set out are not alien to us. These issues have 
long been recognized and until 2019, Sri Lanka was embarking on a path of 
fiscal stabilisation where many of these reforms were put in place. 
Unfortunately, these reforms were rolled back, putting the economy on a 
downward spiral to where we are today. We don’t have any alternative. We 
must undertake these reforms for the benefit of the future and the betterment 
of the presently young people. 
14.2 Therefore, it is essential that whatever reforms we put in place today are 
shielded from myopic and stubborn decision making that derails the 
economic recovery that we all hope to see. Towards this end, we will 
introduce new legislation under a Public Finance Management Act (PFM Act) 
that will include stronger Fiscal Rules. 
14.3 A “Parliamentary Committee on Ways and Means” will be established to closely 
deal with issues and make proposals in raising government revenue.
10
15. Disposal of scrap materials accumulated in public sector institutions 
• It is found that a large amount of scrap material are piled up in many 
government institutions due to non-removal/disposal of the same for a long 
time. Besides, the government is losing a lot of revenue that could be obtained 
by selling the scrap material. 
• Accordingly, a committee consisting of three government officials including 
Comptroller General of the General Treasury, will be appointed to supervise 
and implement the entire process of the disposal of scrap.
16. Establishment of a National Debt Management Agency (NDMA)
• The government debt management related activities are carried out by the 
Central Bank of Sri Lanka, External Resources Department, National Budget 
Department and the Treasury Operations Department at present. As it is 
important to pay special attention to the management of public debt, an 
independent National Debt Management Agency (NDMA) will be set up 
under the General Treasury in lieu of current arrangement in this respect.
17. Establishment of National Agency for Public Private Partnership (NAPPP)
• A national agency will be established for the purpose of identifying and 
facilitating investment to be undertaken in partnership with the public and 
private sector. I propose to allocate Rs. 250 million for the implementation of 
this proposal.
18. Monetary and financial sector 
18.1 The new Central Bank Act will be implemented as a key legislation to 
strengthen the monetary sector in the country. This legislation would provide 
the framework for effective implementation of inflation targeting and prevent 
monetary financing of the budget deficit - what is commonly known as money 
printing. 
11
• The new law insulates the Central Bank of Sri Lanka from politicisation of 
monetary policy decisions. 
• Given the weak government revenue and lack of net foreign financing of the 
budget, it is inevitable that a limited level of monetary financing would 
continue until tax policy measures help improve the government cash flow 
and the IMF programme unlocks foreign financing for the budget. 
18.2 Allotment of 20 percent shareholding in state banks to the depositors and staff 
of those banks
• In order to meet recapitalization requirement borne out due to increase in 
interest rates, rising NPLs, loan settlement issues faced by businesses due to 
economic crisis, and liquidity issues faced by the state banks, it is proposed to 
allow 20 percent of shareholding of the Bank of Ceylon and People’s Bank by 
their depositors and staff. 
• It is noted that government’s ability to provide additional capital at this stage 
to the state banks is very limited given the lack of fiscal space. 
19. Social welfare 
19.1 The Welfare Benefits Act became law in 2002, but it has not properly 
implemented thus far. The Welfare Benefits Board has now been activated 
and the data collection to establish the database or the social registry is 
progressing. A new mechanism for identifying beneficiaries through 
objective and verifiable criteria has also been established. It will ensure that 
transparent laws and systems are in place. With the completion of this work, 
the welfare programmes will be better targeted and cash transfers will be 
made directly to bank accounts of beneficiaries.
19.2 I am well aware of the difficulties faced by many due to the ongoing crisis. 
That’s why I decided to cut some of the capital expenditure and find room to 
provide enhanced support for vulnerable communities. 
19.3 As you are aware, the government spent additional amount of about Rs. 
31,000 million approximately from May to July 2022 to provide an additional 
monthly allowance as urgent assistance to those who have affected due to loss 
12
of employment, decline in agriculture output and inability to cultivate due to 
many reasons.
• I propose to continue this programme for further four months to reduce the 
pressure of the economic crisis on the affected people mentioned above.
• I also propose to provide additional monthly allowance of Rs. 2,500 for 
pregnant mothers in addition to Rs. 20,000 already provided for them. 
• It has been reported that there are about 61,000 food insecure families, which 
need urgent assistance. I will provide Rs. 10,000 per family for a period of 
further four months.
19.4 For all the above programmes, I will allocate Rs. 46,600 million for a period of 
4 months.
19.5 The recent increase in the kerosene prices has created difficulties for the 
owners of small boats which are used for fishing industry and for those who 
in the plantation areas that has no electricity services. I will provide a subsidy 
for these areas.
19.6 Rs. 133 billion has been allocated under the World Bank loan assistance for 
the implementation of programs with the view of reducing the impact of the 
current economic crisis and restoring social stability. 
• Accordingly, I have obtained approval through the Supplementary Estimate 
presented to Parliament before presenting this budget to provide immediate 
relief to around 3.2 million people affected by the current economic situation. 
• Under this, monthly Samurdhi allowance has been increased to an amount 
ranging between Rs. 5,000 to Rs. 7,500 per month for approximately 1.7 
million currently Samurdhi receiving families. Apart from that, an assistance 
of Rs. 5,000 was provided per month temporarily to around 726,000 families 
who were in the waiting list for expecting Samurdhi benefits. 
• Also, the allowance paid for the elderly, disabled, and kidney patients was 
increased to an amount ranging between Rs. 5,000 to Rs. 7,500. Further, the 
temporary assistance of Rs. 5,000 was arranged for the people who are in the 
waiting lists in anticipation of receiving this assistance.
13
• In addition to the above concessions provided under this project, US dollars 
110 million (Rs. 40 billion) has been allocated for the import of Urea required 
for paddy cultivation in the 2022/2023 “Maha” season, and fertilizer 
procurement is already underway. I believe that this will enable the paddy 
farmers to get a good harvest in the coming season and thus will be able to 
get rice at a reasonable price for the rice consumers.
• Further, under this loan facility, domestic cooking gas was imported and 
distributed in the country during a short time duration to overcome the 
domestic gas shortage that had arisen in the country due to the current 
shortage of foreign exchange. Also, we are working to meet the domestic gas 
requirement without shortage in the future as well. It is intended to spend 
about US dollars 70 million (Rs. 25 billion) from this loan assistance for that.
• That is in addition to the concessions mentioned in Section 19.3 above.
20. Introduction of new laws / revision of laws
20.1 In order to stabilize the economy and facilitate the growth process, it is 
proposed to make appropriate revisions and introduce new laws to make 
reforms expeditiously in a short period of time as given below.
(a) New Laws
i. Food Security Bill
ii. Public Asset Management Bill
iii. Economic Stabilisation Bill
iv. Offshore Economic Management Bill
v. Public Service Employment Bill
vi. Public Finance Management Bill 
vii. The Recovery of Possession of the Premises Given on Lease (Special
Provisions) Bill
viii. Contributory National Pension Fund Bill
ix. Agency for Overseas Sri Lankans Bill
14
(b). Revision of Laws
i. Amendments to Agrarian Development Act
ii. Amendments to Excise Ordinance
iii. Amendments to Finance Act
iv. Amendments to Foreign Exchange Act
20.2 We will discuss with all stakeholders to introduce a more realistic mechanism 
than Termination of Employment of Workman Act (TEWA) to handle 
employees who lose their jobs due to the crisis.
20.3 Chapter 11 of the Bankruptcy Code of the United States and introduction 
of similar provisions to Sri Lanka 
Chapter 11 of the US bankruptcy Code of the United States contains 
provisions on how to reorganize businesses in distress due to indebtedness. 
Bankruptcy alone is not a reason to close the business and there are ways to 
reorganize the business by restructuring the assets and liabilities and by 
getting rid of the indebtedness while staying alive in the business. New laws 
in similar lines should be enacted for Sri Lanka as well.
21. Agriculture 
21.1 The number of paddy farmers with 2 hectares or less who are in repayment 
arrears of cultivation loans given by the state banks as of 31.05.2022 due to the 
decrease in harvest, lack of fertilizers, agro-chemicals and inputs, 
abandonment of cultivation, etc., was 28,259. Aimed at strengthening of the 
farmers and freeing them from debt burden, actions are being taken to write 
off the outstanding loan amounting to Rs. 688 million (excluding interest) 
which is currently in default to the state banks. The money to be writing off 
will be paid back to the respective banks in two years in a phased manner so 
as not to put added pressure on the cash flow of the General Treasury. 
Accordingly, the respective banks should arrange to write off the interest 
15
relating to such loans. I propose to allocate Rs. 350 million for the 
implementation of this proposal.
21.2 We must ensure that agriculture and entrepreneurship are fused together. We
should make sure we understand problems and rethink to promote our 
agriculture. The youth are quick to adopt new technologies. They can use 
innovative tools and improve efficiency across the value chain. In this context, 
I propose to establish Youth Agriculture Companies and link them with 331
Divisional Federation of Youth Clubs to get maximum results. Rs. 250 million 
will be allocated for this proposal.
21.3 It is important to develop agriculture value chains as well. For this purpose, I 
propose to strengthen the Domestic Agriculture Development (DAD) Value 
Chain Programme. The DAD pilot phase (DAD PP) is being implemented by 
CBSL with its own funds (Rs. 1 billion) and it is expected to expand the 
program in 2023 with the assistance of the development partners, while 
encouraging the production for the overseas market.
21.4 There is a strong need to enhance domestic dairy production. Therefore, it is 
prudent to implement a National Programme with the support of all 
stakeholders through a project that will be funded by government or a 
development partner. Since the productivity in the highland climate is higher, 
the unutilized or low productivity lands of plantations could also be utilized 
for this project. I propose to allocate Rs. 200 million for this initially.
21.5 Since there is a shortage of seeds and planting material due to the decrease in 
the cultivated area and yield in the past, the Department of Agriculture and 
government farms should implement an urgent programme to supply the 
necessary seeds and planting material to the farmers. Accordingly, I propose
to allocate Rs. 400 million to the Department of Agriculture to produce the 
necessary seeds and planting materials.
16
21.6 Utilizing unemployed youth for the productive use of the existing 
government lands.
• With the aim of efficiently and productively using government land for 
agriculture and livestock under the strategy for encouraging export-oriented
agriculture, the government lands will be used efficiently and unemployed 
youth will be directed for that purpose. 
• Accordingly, it is expected that 20 acres of land will be allotted to currently 
unemployed youth groups (groups of about 10 members) in the area where 
the identified lands are located for the purpose. 
• I propose to allocate Rs. 50 million to implement this proposal. 
21.7 I also propose to introduce a “National Food Security Programme” covering 
broad areas, including the enhancement of production, collection, storage,
and distribution of food, as well the provision of food to those who do not 
have the capacity, to ensure food security and implement the same as a 
national priority.
21.8 Revision of Agricultural Insurance Programme
• Although the farmers have actively contributed to the program by providing 
insurance premiums from the beginning of the implementation of the 
agricultural insurance program, it appears that the government currently 
bears all the funds related to this insurance. 
• Accordingly, it should be reviewed whether it is necessary to continue the 
present system or whether it is possible to provide the relevant facilities to the 
farmers under another convenient system.
22. Research and Development (R&D)
• Improving R&D is important to improve Sri Lanka’s global competitive 
ranking in order to be successful.
17
• I propose Rs. 100 million to establish a mechanism to promote R&D and 
commercialize the same, particularly with the startup culture, with the 
assistance of local universities and technological institutes.

Promotion of local packaging products
• There is a need to reduce wastage of agricultural produce by way of 
improving the marketing and storage time. Therefore, food packaging 
industries using local raw materials should also be promoted to preservation 
and marketing of agricultural produce. 
• Accordingly, 50 percent import duty concession is offered on import of 
advanced new technology equipment/accessories for food packaging. Apart 
from this, the Palmyra Development Board, National Design Center and 
Export Development Board should jointly introduce new packaging 
programme and contribute to the promotion of the export market through 
innovative packaging. 
• I propose to allocate Rs. 250 million to implement this proposal.
24. Promotion of tourism industry 
24.1 In order to attract more tourists from September this year, the Ministry of 
Tourism should organize special programmes with the support of the Tourist 
Board and other institutions related to the tourism industry. Here, it is 
necessary to target the cultural /religious events that are unique to different 
races to be held in Sri Lanka in the future. Considering the importance of this 
industry, by the end of 2023, the number of tourist arrivals per year should be 
increased to more than 25 lakhs as the target. 
• In addition, special attention should be paid to attract high-end tourists.
• Also, a five-member committee, representing various sectors, should be 
appointed to present a report focusing on the identification of new places of 
tourist attractions and the improvement of related facilities and a report 
18
containing their recommendations to be presented in a month for onward 
actions. I propose to allocate Rs. 300 million to implement these proposals.
25. Facilities from the Climate Fund 
25.1 As there is a trend of increasing accidents, disasters and property damage due 
to weather and climate related effects in Sri Lanka, suitable measures should 
be taken urgently to reduce the climate effects. 
25.2 For that, the Ministry in charge of the subject of environment should prepare 
a suitable program and obtain necessary support from the Climate Fund and 
implement a mitigation program accordingly.
26. Expanding higher education opportunities
26.1 Many countries in the world have opened educational opportunities to 
foreign students in a manner to build their foreign reserves. In the South 
Asian region, Bangladesh, India and Nepal have already opened up their 
countries to foreign students to build up their foreign reserves. Accordingly, 
Sri Lanka also needs to encourage private investment to provide educational 
opportunities to foreign students.
• Hence, I propose to facilitate the establishment of branch campuses in Sri 
Lanka, particularly focusing on Science, Technology, Engineering and 
Mathematics (STEM) subjects as well as finance, information technology and 
medicine. For this purpose, the government will provide all facilities through 
the Board of Investment (BOI) to establish such branch campuses as per the 
provision laid down in the Companies Act and Universities Act and other 
applicable legal provisions subject to amend them when and where necessary.
• The creation of space for private investment in higher education will free up 
government resources that will enable the state to ensure that free education 
is preserved and in fact expanded beyond present levels. Scholarships will 
also be provided to Sri Lankan students to study in these universities.
19
26.2 I also propose to open a branch campus of the Kotalawala Defence University 
(KDU) in Kurunegala. 
27. Facilitating new jobs based on skills
27.1 In the Sri Lankan labor market, there are a large number of people who are 
employed without any previous training and are employed by getting skills 
through work. 
27.2 There is a need to provide more training and qualification to this group, 
including relevant theoretical knowledge. Through this, the productivity of 
work will grow, and businesses will be able to gain a competitive position in 
the global context by having skilled staff. Also, the job seekers will be able to 
find more effective employment opportunities as well as foreign employment 
opportunities. 
27.3 As a result of the negative impact of the COVID-19 pandemic and the 
economic recession, there are people who are losing their jobs, so there is a 
need to train them for new job opportunities. Support level staff working in 
free trade zone factories from rural areas tend to return to the countryside 
after working for about five years. Here, women often lose job opportunities 
and men are engaged in informal jobs. 
27.4 Accordingly, it is necessary to provide further training to be able to get a new 
job based on the skills acquired in the jobs engaged in free trade zones.
27.5 Accordingly, it will be possible under this system to train and provide NVQ 
certificates from the selected vocational training institutes (Youth Corps, 
VTA, NAITA,) and TVEC, which is the regulatory body in the vocational 
training sector. 
27.6 I propose to allocate Rs. 200 million to implement this proposal.
20
28. Ensuring the employment security of the community engaged in Microscale self-employment / Livelihood occupations
28.1 Many people in the community living in urban and rural areas are engaged 
in micro-scale self-employment / livelihood occupations. By providing parttime or short-term formal training in technology and innovation for life 
occupations to this community, the productivity, safety and health of those 
jobs will increase, and the quality of products will also improve. For this 
purpose, it is proposed to establish a community unit in every Vocational 
Training Center operating under the government to empower the community 
and the technical services that are not available in the training center will be 
obtained from outside and training facilities will be provided to the 
community. 
28.2 Accordingly, work is being done to provide formal training in food and 
beverage preparation, fish drying and vegetable dehydrating, sewing 
knitting, beeralu weaving, brass industry and Black Smithing as livelihood 
around the training center, online self-employments based on the Gig 
economy and other life occupations. After the training, a certificate is also 
being provided.
28.3 After formal training, the currently engaged profession can be done 
effectively and efficiently, so food and other products can be provided in 
quality. Through that, it is possible to confirm their job security and improve 
their businesses.
28.4 I will allocate Rs. 200 million to implement this proposal.
29. Use of railway facilities for vegetable and fruit transportation to make the 
supply chain more efficient.
29.1 The transport of vegetables, fruits, flowers and tea products from the upland 
areas to Colombo and urban areas is important to the farmer, the producer, 
the trading community as well as the consumer while preserving the 
freshness. Hence, it is necessary to encourage the transportation of these 
21
goods by railway. Through this, waste, delays and costs can be minimized 
and an additional revenue will come to the Sri Lanka Railways. 
29.2 As a starting point, a train with relevant facilities should be deployed to 
transport vegetables, fruits and other products from Hali Ela Railway Station 
to Colombo Fort Railway Station. Cargo loading facilities should be improved 
in relevant railway stations for this purpose, a system should be implemented 
with the participation of cooperatives and private entrepreneurs to establish 
cargo collection centers and provide transport facilities from those centers to 
the respective railway stations. 
29.3 Sri Lanka Railways should work to implement a suitable program to 
encourage wholesalers to transport goods from Colombo to Badulla.
29.4 I propose to allocate Rs. 200 million to implement this proposal.
30. Private investment to improve quality and efficiency of the railway 
30.1 Since providing efficient and high-quality transport service to the people is a 
priority task of the government, it is expected that private sector investments 
will be used for the development of the railway transport service using the 
existing infrastructure under this program. 
30.2 Accordingly, it is expected to develop the Kelaniweli train service as a pilot 
project. The selection of investor/s will be based on competitive bidding 
process.
31. Trade and investment 
31.1 The government’s macroeconomic reform programme will focus on reengaging with the global economy to tap into regional and global value chains 
to enhance exports and export oriented FDI. 
31.2 Accordingly, the government will gradually phase out the high trade barriers 
in the form of para-tariffs. This will be done in conjunction with a Trade 
Adjustment Programme to support industries and workers adversely affected 
by such tariff liberalization. 
22
31.3 The government will provide renewed support to the National Export
Strategy, a well thought out framework of export support that was developed 
through broad stakeholder consensus in 2018. 
31.4 We will resume efforts towards engaging broader regional trade agreements 
in order to link into regional value chains which have been the driver of 
export growth in the South East Asian region in particular. 
31.5 The Government will facilitate the expansion of renewable energy sources to 
enhance availability and reduce the cost of energy generation in Sri Lanka by 
allocation of necessary land and through the necessary operational 
restructuring of the CEB.
31.6 The government being the owner of around 80 percent of land will take 
measures to facilitate access to land with suitable utilities for domestic and 
foreign investment. We will implement a programme to award title deeds for 
lands previously handed over under numerous grants.
31.7 I also like to propose to establish an “Office for Overseas Sri Lankans”, which 
will act as a central point of coordination to obtain the support of Sri Lankans 
who are living abroad to the country. This office will encompass various 
organisations of the Sri Lankans across the globe and focus mainly on 
attracting investments, promoting tourism and similar matters. In order to
support this, an “Overseas Sri Lankan’s Fund” will also be established. It is 
expected to get the support of all Sinhala, Tamil, Muslim, Burgher and other 
Sri Lankans who live abroad for this programme.
32. Manufacture of electric bicycles
• Manufacturing of electric bicycles should be encouraged as a local industry 
with a view to reducing fossil fuel consumption. 
• Therefore, tax concessions will be provided for imported accessories/parts 
required in the manufacture of electric bicycles locally with more than 50 
percent value addition.
23
33. Strengthening governance and fighting corruption
• A comprehensive legal framework will be established to strengthen 
governance and fight corruption. This framework will strengthen the asset 
declaration system and increase independence of the Commission to 
Investigate Allegations of Bribery or Corruption. Further, I propose to 
promote technology infused systems to eliminate grounds for corruption and 
create transparency. 
34. The End
34.1 We will prepare the foundation for the journey of creating a revitalized 
economy through these proposals. I would like to draw your attention to 
another particular issue.
34.2 As I have mentioned on several previous occasions, our aim is to create a 
surplus in the primary budget by the year 2025. Our effort is to stabilize the 
economic growth rate. Our aspiration is to establish a solid economic 
foundation by the year 2026. As at end 2021, public debt is about 110 percent 
of the Gross Domestic Product (GDP). Our target is to bring this down to less 
than 100 percent in the medium term.
34.3 If we build the nation and its populace based on the National Economic 
Policy, we would be able to become a fully developed country by the year 
2048, when we celebrate the 100th anniversary of independence.
34.4 We can no longer be a nation dependent on loan assistance. We can also no 
longer be used as a tool of interference by other countries with strong 
economies. All of our collective vision should be to make our country strong 
and stable, in order to stand independently. We must strive to bring business 
entities of our country to a competitive level in the global market. We must 
pursue to capture a share of the global market on agricultural exports. We 
should seek to create a disciplined, knowledgeable society, that provides right 
opportunities to maintain social justice. 
24
34.5 All this can be achieved, only if we work together in unity with common 
consent. I reiterate the invitation to all the parties represented in this 
Parliament to join an All-Party Government, since this unprecedented 
situation is the responsibility of us all, and therefore need to prioritize the 
necessities of the country and the nation.
34.6 Some parties say that they will not join an All-Party Government due to action 
by the Government which they cannot condone. Others express a reluctance 
to join due to their opposition to the policies. In this instance, I wish to 
emphasize that, I am not the person who decides the actions or policies of an 
All-Party Government. It is not an administration of a single person or a single 
party, and will be established according to the consent of all stakeholders of 
the government. Therefore, I reiterate that, if there are policies or practices 
which you do not condone, then you have the right and mandate to change 
them within an All-Party Government.
34.7 Therefore, I request all of you in this House and all the citizens of the country, 
to put aside your personal political goals and unite in the context of the 
national cause of rebuilding the country and the nation. If we all come 
together, we will be able to uplift our Motherland, and create a nation that 
competes and moves forward with the ever-changing world. If we miss these 
opportunities, we will be marginalized globally.
34.8 I would like to remind you, the line of the lyrics ‘Aaji Thapara Lahila’ written 
by Bandara Eheliyagoda for a teledrama produced for the Mahapola 
Scholarship Fund.
‘Apa pamanada ekathena karakenne – Apa thanikara lokaya diva yanne'
34.9 So, let's get together for the country, without spinning in one place anymore. 
Let's create a knowledgeable society with a strong economy that can run 
forward together with the world.

Thank you