LIVE UPDATES: 2025 Budget Speech
February 17, 2025 10:39 am
In his concluding remarks during the Budget Speech, the President said that never has Sri Lanka had a chance like this to catch up with the modern world.
“I see a chance for united Sri Lanka, for a clean Sri Lanka, for a prosperous Sri Lanka, to surpass everyone’s expectations,” he stressed.
“To the Sri Lankan Expatriates, those with Sri Lankan roots, whether you were born in Sri Lanka or heard of your motherland from your parents, know that to us, you are all Sri Lankans. Your country is proud of your success. We understand why you may have lost faith in our motherland. Know that I am grateful for every effort that any of you take, even from afar, to help our country.”
“We invite you, one and all, to come back and see for yourself how much Sri Lanka has changed. We invite you to contribute your expertise, your talent and your perspective to our island nation, whether in the private, public or non-profit sectors. Join us, and work with us to accomplish a level of success that we can only all achieve together.”
“Majority of our citizens voted last year to chart a new course, to unite to rebuild our country and reach the full potential of our citizenry. For the first time in history, all of Sri Lanka, from north to south, and east to west, have united behind a common purpose. Religion, race, gender, class and age no longer divide us.”
“That is one thing I can promise about the people of Sri Lanka: The people will never again be divided against each other. The people will never again be fooled by those who seek to turn us against each other for their own political or personal gain,” he said.
Public Representatives and officials of the Government all have a common objective, the President said, adding that similarly the thousands of hardworking, dedicated, and patriotic public servants who have joined them to make a difference also have a collective objective.
“We will never tire. We will never waver. We will not compromise on 57 our principles. We will never ever let you down. We will lead by example, and raise all Sri Lankans up together. Together we will all prosper. We will all be proud of each other and of the beautiful, sacred island we call home,” he said.
Concluding his Budget Speech, President Dissanayake expressed his gratitude to the officials at the Ministry of Finance, especially the Secretary to the Treasury Mahinda Siriwardana, who he said worked tirelessly for weeks to finalize the budget.
The President said he expects further cooperation from the officials at the Treasury to successfully implement the budget proposals in time to take forward the economic programme of the Government.
The Government has decided to provide a concessionary ‘Seasonal Food Package’ by allowing public to purchase essential food items at affordable prices as a supportive measure to reduce the increased cost of living.
Accordingly, it is proposed to provide a Dry Food Ration including rice, canned fish, dhal, onions, potatoes, and dried fish at a concessionary rate through Lanka Sathosa Ltd, during the upcoming New Year season.
President proposed to allocate Rs. 1,000 million to finance these rations.
President proposed to enable a more generous duty-free allowance for Sri Lanka’s migrant workers as they return to the country.
The criteria and basis for the allowance will be determined and publicized following a detailed study of options, he said.
Special Interest Scheme for Senior Citizens:
President proposed to implement a Special Interest Scheme for Senior Citizens.
Under this scheme, individuals above 60 years of age will be eligible for one-year fixed deposits of up to Rs. 1 million with an annual additional interest rate of 3 percent, above the prevailing interest rates in the market for ensuring their financial stability.
To implement the scheme, he proposed to allocate Rs. 15,000 million to subsidize the 3 percent additional interest to be paid for the senior citizens.
This scheme will be implemented from July 2025.
Creating a Drug-Free Society:
President said that drug addiction is a significant concern in Sri Lanka, affecting various segments of society and therefore, the Government has recognized the importance of creating a drug-free society through multifaceted approaches that go beyond punishment.
Accordingly, he proposed to prepare a comprehensive programme incorporating awareness campaigns, rehabilitation including counseling, social empowerment and integration, and law enforcement.
Accordingly, he proposed to allocate Rs. 500 million to implement a compressive program to create drug-free society.
Bus Service Modernization:
As an initial step towards enhancing public sector transportation, a modern and comfortable fleet of technologically advanced buses will be introduced on a pilot basis.
Accordingly, 100 air-suspension, low-floor, comfortable buses will be deployed along three main road corridors within Colombo city.
He proposed to allocate Rs. 3,000 million for the procurement of 100 low-floor buses.
In addition to that SLTB will add 200 low-bed passenger buses for its fleet through its own funds.
These buses will be operated under newly established companies collectively known as Metro Bus Companies (MBC). Proposed bus companies will operate on a fully digitized platform.
Railway Sector:
Rs. 500 million allocated to rehabilitate old railway passenger coaches targeting to rehabilitate passenger coaches to enhance the efficiency of services and cater the growing passenger demand.
President proposed to allocate Rs. 250 million for 2025 to the Department of Railways to initiate building new coaches aiming at fulfilling new passenger coach requirements within the country.
Proposal to extend the Kelani Valley Railway Line, which currently operates up to Avissawella, beyond Avissawella in phases. An allocation of Rs. 250 million will be made through the 2025 budget to begin the initial work related to this.
The Government will implement a joint time table in all bus routes after discussing with CTB and private bus operators.
The Government will continue to invest in the Kandy multi-modal transport terminal development project which would have important spill-over effects in terms of regional development.
Plans to upgrade the Thambuththegama Railway Station by incorporating loading docks with storage facilities upon the recommendation of the study. To support this initiative, he proposed an allocation of Rs. 100 million for the feasibility study as the initial step.
Uplifting the Living Standards of Malayagam Tamil People:
Accordingly, Rs. 7,583 million has already been allocated to support the following initiatives.
- Rs. 4,267 million is allocated for development of estate housing and infrastructure development.
- Rs. 2,450 million is allocated for Vocational training, Livelihood development and Infrastructure Development of Malayagam Tamil youth
- Rs. 866 million is allocated for smart class rooms for schools in Malayagam Tamil community.
Industrial Zone dedicated for Chemical Manufacturing in Paranthan, Northern Province.
There will be 5 Industrial parks such as KKS, Maankulam, Iranawila, Galle and Trincomalee. He proposed to allocate Rs. 500 million for this purpose.
Industrial Zone dedicated for Automobile and Rubber products manufacturing.
President proposed to manage the requirement for this purpose within the already allocated budgetary provisions of Rs. 1,500 million under the Ministry of Industry for this purpose.
Rs. 750 million allocated for a waste disposal facility in Anuradhapura municipal area.
An additional Rs. 240 million allocated as compensation for victims of elephant-human conflicts, bringing the total budget for mitigating the elephant-human conflict to Rs. 640 million.
Rs. 1,050 million has been allocated to promote natural regeneration and address deforestation.
Sri Lanka Day
The President said that the Government policy framework, “A Thriving Nation – A Beautiful Life” articulates a vision for a reconciled Sri Lanka, committed to bridging gaps between communities.
Therefore, he proposed to hold a “National Cultural Festival”, which will be initiated in November and launched in December when Sri Lanka has the highest number of tourist arrivals.
This festival will be organized with the participation of the private sector. Accordingly, he proposed to allocate Rs. 300 million for this purpose.
Rs. 1,000 million allocated for essential maintenance of the apartment complexes constructed by the Central Government.
President Dissanayake stated that with the assistance of the Chinese Government, 1996 housing units are being constructed.
Within this, an apartment complex comprising 108 housing units will be reserved from the Palathuruwatta area in Kottawa for artists and journalists who make special contributions to the cultural enrichment of our society.
President proposes to utilize the already allocated Rs 2,000 million in the budget estimates under the Department of Community Water Supply for the year 2025 to complete the community water supply schemes which have already been started and to commence new community water supply schemes.
Govt to implement a strategic recruitment plan to hire 30,000 individuals in essential public service roles, strictly according to cadre vacancies starting from this year.
Accordingly, the President proposes to allocate Rs 10,000 million for this purpose in 2025.
The Employers’ Associations have already agreed to increase the monthly Minimum Wage to the Private Sector workers from Rs. 21,000 to Rs. 27,000 in April 2025 and to Rs. 30,000 from 2026, the President said.
In addition to the programmes focused on the development of plantation sector, the Government will intervene to increase the daily wages of the workers to Rs. 1,700, according to the President.
Betting and Gaming Levy:
The Gross Collection Levy to be increased to 18%.
Casino Entrance Levy to be increased from USD 50 to USD 100.
Proposed Legal Reforms:
The President said that the Government will introduce a number of legal reforms in the coming year to establish sound legal provisions aimed at fostering rapid economic development, good governance, and effective public service delivery.
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.
Health Sector:
Rs. 604 billion will be allocated for the health sector through the 2025 Budget.
Rs. 7.5 billion to be allocated to supply nutrition packs for pregnant mothers.
Rs 5 billion allocated for the Thriposha programme.
Budget Proposals for Education:
Grade 5 scholarship allowance for students from low-income families will be increased from Rs 750 to Rs 1,500.
Rs. 1 billion will be allocated to supply meals for school children.
Over Rs. 1,000 million will be allocated through 2025 Budget to uplift school infrastructure.
Rs. 135 billion allocated for the development of the university system.
Mahapola Scholarship allowance will be increased from Rs. 5,000 to Rs. 7,500.
The breakfast meal allowance for pre-school students will be increased from Rs. 60 to Rs. 100.
Rs. 100 million will be allocated to increase the salaries of preschool teachers.
Pre-school teachers to receive an increased allowance of Rs. 1,000 from July.
Vehicle permits will not be issued for MPs, and funds will not be allocated for new vehicles for MPs this year.
All luxury vehicles belonging to the government will be auctioned off.
A new development bank for the SME sector will be established under the existing state banking system.
The new Digital ID will be introduced rapidly, says President AKD.
A new Digital Economic Authority will be established, says President Dissanayake.
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 morning (17).
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