President Anura Kumara Dissanayake unveils Sri Lanka’s Budget 2025

By  News On Air   Feb 17, 2025

President Anura Kumara Dissanayake unveiled Sri Lanka’s Budget 2025, focusing on economic recovery, fiscal discipline, and social welfare. The government targets a 5% GDP growth rate, aiming to stabilize the economy after the 2022 financial crisis.

Sri Lanka is aiming for tax revenues of 4,590 billion rupees equivalent to 13.9 percent of GDP in 2025 up from 3,705 billion rupees which was at 12.3 percent in 2024. President Dissanayake mentioned that no new taxes are proposed in the 2025 Budget. For 2025, significant revenue gains are anticipated from the liberalisation of motor vehicle imports, effective from this month.

The budget expects a primary surplus of 2.3% of GDP, while Budget Deficit is expected to be 6.7%. The budget allocates 604 billion lankan rupees to Health sector while social security programmes like Aswesuma have been allocated 232 billion rupees.

Public sector salaries will see an increase with minimum salaries increasing by about 15750 rupees, addressing inflationary pressures and improving living standards. The budget also has targeted Foreign investments with projects including the development of an oil tank farm at Trincomalee.

With Sri Lanka still recovering from its 2022 financial crisis, the budget speech mentioned that a structured plan will be prepared to resume debt repayments by 2028 which includes negotiating with international creditors to restructure its obligations.