• Claims no other prog./plan rivals efficacy of current one or offers viable alternative
• No Govt. revenue growth to address salary revisions, reconsideration next yr. is ‘realistic possibility’
• New Econ. Comm. & new consolidated law for investments within May, int’l trade institute due 

President and Minister of Finance, Economic Stabilisation and National Policies Ranil Wickremesinghe said that since there exists no alternative path to reconstructing our economy and since no other programme or plan rivals the efficacy of the one currently in place nor offers a viable alternative, this underscores the critical need for a unified agreement and consensus on our economic reform programme. 

Achieving this consensus extends beyond the representatives within the House of the Parliament as it necessitates a unified consensus which is not solely the responsibility of the public representatives in the Parliament, but also falls upon religious leaders, trade unions, professionals, the business community, non-governmental organisations, various opinion leaders, individuals with social influence, and every citizen, he added.

President Wickremesinghe made these remarks while delivering a special statement in the Parliament yesterday (9).

“We anticipate economic growth of at least 3% this year,” he further added. 

Regarding debt restructuring, he noted that the second phase focused on restructuring loans obtained through official agreements with foreign countries, where the next step involves signing a memorandum of understanding with the creditor countries to finalise the process. 

“The Government is presently in discussions regarding the draft with the Official Creditors Committee. Additionally, negotiations are underway with China's Export-Import Bank. The third phase identified for restructuring is commercial debt. The consulting Firms Lazard and Clifford Chance, representing the Government, are currently engaged in negotiations with the Creditors' Committee. Negotiations are progressing positively, with both parties considering the proposals. We aim to conclude these discussions by the middle of this year. The overarching objective of debt restructuring is to decrease our total debt to 95% of the gross domestic product by 2032, maintain the Government's gross financial requirement at 13% annually, and limit external debt servicing to 4.5% annually,” he went on to say.

On granting relief for economically disadvantaged groups including kidney patients, the elderly and individuals with disabilities, in 2024, a total of Rs. 205 billion will be spent for these relief programmes, he noted. “The Government intends to continue supporting those in need in the future.” 

Despite receiving numerous requests for salary revisions, there is currently no Government revenue growth allocated to address this in 2024, the President noted, adding: “Based on the trajectory of economic growth in 2024 and the corresponding increase in Government revenue, the reconsideration of public sector salaries next year (2025) is a realistic possibility.”

“We have not yet begun repaying our foreign debt. At the conclusion of the debt restructuring process, we will be required to settle these debts. To do so, it is essential to increase Government revenue. Also, it requires building up our foreign exchange reserves. We must avoid further contributing to uncertainty by continually taking on foreign loans.

“We must pay more attention to exports. Additionally, we must focus on transitioning towards a green economy while safeguarding the environment. New technical dimensions, including information technology (IT), must be incorporated into economic tasks. Establishing a social-market economic foundation and ensuring the equitable distribution of benefits from economic reforms across all parts, are crucial. Our economy cannot sustainably support loss making State enterprises that weigh heavily on the people. The Government has presented an alternative procedure to address this issue. 

“If private sector intervention can effectively manage Government enterprises, those entities burdening the people with taxes and losses should be re-evaluated. A significant portion of the country's land is presently under Government control, lacking proper utilisation and burdening the public. Therefore, we have initiated steps to establish a commercial export oriented agricultural economy, with active involvement from local private entities focused on commercial exports, to address the said issue. Also, maximising the utilisation of existing agricultural land to its fullest potential is paramount. Accordingly, an initiative for agricultural modernisation has been initiated to enhance agricultural productivity. 

“Empowering farmers through modern technology is one of the key objectives of this process. Currently, this initiative has been implemented in 26 Divisional Secretariat (DS) Divisions. Plans are underway to extend its reach to an additional 75 DS Divisions in the coming months. The economic crisis has forced many small and medium scale enterprises to halt operations. A programme has been formulated to restore these businesses to their former vitality. Tourism has emerged as a rapidly growing sector in our economy. In comparison to the first four months of last year (2023), there has been a remarkable growth of over 75% in tourist arrivals during the corresponding period in 2024. To date, nearly 800,000 tourists have visited Sri Lanka this year. Both the government and the private sector are actively engaged in implementing a comprehensive programme aimed at enhancing the infrastructure necessary for the tourism industry. Enhancing our foreign investment sector is pivotal for long term economic growth. 

“The establishment of formal laws and a modern institutional framework is imperative to attract foreign investments. To this end, we anticipate the establishment of a new Economic Commission through the amalgamation of various existing outdated institutions. Furthermore, a new consolidated law has been drafted to supersede outdated legislation pertaining to investments. It is anticipated that the requisite procedures will be undertaken within this month (May). Numerous sectors necessitate modernisation to facilitate rapid economic growth and these include education, healthcare, transportation, vocational training, urban development, defence, IT, foreign relations, supply chains, export industries and the workforce. An approach has been adopted to enact reforms aimed at fostering holistic growth across the power sector. We anticipate sustaining our foreign relations network grounded in economic activities. Initial groundwork for establishing an international trade institute within the Ministry of Foreign Affairs has been completed, with a new law also prepared for this purpose. In the past two years, over 30 new laws and amendments have been enacted in this Parliament with the objective of economic reforms. Additionally, several similar laws are anticipated to be presented to this House in the near future. 

“Notably, the Economic Transformation Bill, the Public Finance Bill and the Public Debt Management Bill are among the prominent Legislations slated for submission. The Economic Transformation Bill encompasses provisions for the establishment of key entities such as the Sri Lanka Economic Commission, the Investment Infrastructure Corporation, the International Trade Institute, the National Productivity Commission and the Sri Lanka Economic and Trade Institute. The Economic Transformation Bill incorporates a range of measures intended to guide the Government's actions over the long term. Irrespective of which Government assumes power in the future, it is imperative that the provisions outlined in the Act are upheld to prevent the economy from descending into turmoil once more. It is noteworthy that the Opposition has provided crucial support for the economic reforms that we have undertaken thus far.”