LIVE UPDATES: President Ranil delivers 2024 Budget Speech

- “We want to create a green economy that protects trees and greens, environment..!” – President 

He said Sri Lanka is working hard to develop renewable energy sources including green hydrogen, green ammonia, and solar and wind. “We are working to establish a climate change commission soon.”

He said they have allocated 600 acres of land beyond the Kothmale Reservoir to establish an International Climate Change University 

“We need to create a green economy in Sri Lanka to face the future with strength. The climate resilience plan is the basis for the future vision of the sustainable development agenda,” he said.

- There are more than 720 government-owned resorts and tourist bungalows that can provide approximately 3,750 rooms, the President said. He also proposed to prepare a program to attract local and foreign tourists by modernizing the government resorts and using them to promote tourism. He proposed to allocate Rs. 600 million for these development activities.

- He said that research and development, technological advancement and innovation, play an important role as a catalyst in promoting economic growth and supporting economic progress and social well-being. He proposed to formulate a national research policy based on those facts to allocate Rs. 8 billion for this purpose.

- He also proposed to establish a technological innovation council to encourage technological innovation in coordination with the public sector, expert institutions and civil society. 

Also, steps will be taken to establish a National Center for Artificial Intelligence to ensure an economic and social transformation, based on the latest trends in digital technology, and artificial intelligence, he said. An amount of Rs. 3 billion is allocated to implement these activities for the next year. 

A critical backbone for this infrastructure will be the development of Sri Lanka’s digital identity. Steps have been taken to reach this goal and it is expected to be completed in the year 2024, the President added.

- President proposed to establish new investment zones centered in Hambantota, Jaffna, Trincomalee, Bingiriya and Kandy. He also proposed to control these specific investment promotion zones through the Infrastructure Corporation.

- Steps will be taken to further modernize the customs laws to prepare the customs laws of Sri Lanka according to global best practices, he said.

- As a primary step to improving Sri Lanka’s deeper connectivity with foreign trade and global markets, we are taking steps to eliminate non-tariff import taxes, including import CESS, Port, and Airport Levy, he said, adding that the easing of these taxes will be phased out through 3 to 5 years.

- President proposed to establish a new revenue authority. Further, it is proposed to establish a special project team under the Ministry of Finance to coordinate the establishment of this revenue authority. He proposed to establish a special project committee to coordinate matters in relation to the establishment of the revenue authority.

- He said budget allocations are needed to settle the existing debt and the borrowing limit needs to be increased. Accordingly, he proposed to increase the borrowing limit by Rs. 3,450 billion from Rs. 3,900 billion to Rs. 7,350 billion.

- He proposed to allocate Rs.3,000 billion through this budget for the implementation of foreign debt restructuring and settlement of International Sovereign Bonds under foreign debt restructuring.

- Under the debt restructuring supported by the IMF, Sri Lanka’s public debt as a percentage of GDP is expected to be reduced from 128% in 2022 to 95% in 2032. People will get the benefits of these savings, he said.

- President said the Gin Ganga water management programme should be implemented as a measure to prevent floods in Galle District and that it is the government’s expectation to implement this as a medium-term programme. He proposed to allocate Rs. 250 million for its basic work.

- Wickremesinghe said that as soon as the foreign debt restructuring process is completed, the second phase of the Central Expressway, i.e. the section from Kadawatha to Mirigama, will be started jointly with China. 

He said they hope to get the support of Japan for the construction of the section from Kurunegala to Galagedara. “We are planning to find out whether it is possible to build the highway up to Katugastota,” he said. 

- The President said that the construction of the Hingurakgoda International Airport has not been implemented despite discussions on various scales for some time and therefore, for its basic activities Rs. 2 billion will be allocated for 2024. 

- President proposed to allocate Rs. 700 million to establish the National Janasabha Secretariat. 

- A pilot project of running 200 electric buses will be started jointly with the Sri Lanka Transport Board (SLTB) in the Western Province.

- The Department of Motor Traffic to be digitized in 2024.

- The President acknowledged that cricket in Sri Lanka is currently facing an institutional crisis and a shortage of talent. He said Rs. 1.5 billion will be allocated from this budget for the development of school cricket and for providing necessary facilities to cricket players at the provincial level. 

He said schools and provinces with less facilities are given priority in providing this allocation.

- President proposed to establish Maha Vihara University incorporating all the aspects of Mahavihara’s history and roles. It is expected to complete the initial work on this during the next decade. 

A Performance committee will be appointed under the Presidential secretariat in order to commence the work within a six-month period while Rs. 400 million will be allocated for the initial works of this programme.

- He said that Rs. 500 million will be provided for the development of Punareen City, which is a very important town for tourism, located near the Sangupiddy Bridge on the Jaffna - Mannar main road. 

- On the serious issues regarding drinking water in Jaffna, he said the best solution is to implement the Pali-Aru water project. Wickremesinghe said they expect to commence the initial work of this project in the first half of 2024 and that Rs. 250 million will be granted for the year 2024 for the preliminary activities of this programme.

- He said that compensations have been provided for 181 missing persons and victims affected by the internal conflict in the Northern and Eastern Provinces, and that compensations will be provided to another 170 by the end of 2023. 

He said preliminary work has been completed for more than 5,300 incidents out of the submitted requests, and Rs. 1,500 million has already been allocated by the Appropriation Act. He proposed to allocate Rs. 1,000 million to expedite the payment of these compensations.

- He said that although 14 years have passed since the end of internal conflict in the North and Eastern provinces, some families are still homeless in those areas. 

He said Rs. 2,000 million has been allocated from this year’s Budget to meet the needs of resettling these people. However, he propose to allocate Rs. 500 million as an additional provision to speed up the housing programme and provide essential relief to the families that remain homeless.

- He also proposed to allocate Rs. 300 million to implement a special programme for economic empowerment of women and youth engaged in the handloom industry.

- President proposed to introduce gender-based budgeting and make related legislation. We are also working to introduce laws for the empowerment of women, he said.

- He said the capacity of the Colombo Port will improve after the construction of the West Terminal and the expected Colombo North Port after the year 2030. Trincomalee port will also be developed, he said. 

- “We expect to initiate land connectivity between Sri Lanka and India. We expect to utilize Colombo Port to meet the supply needs of South West India and Trincomalee Port to meet the supply needs of South East India,” the President said.

- Rs. 100 million to be allocated to implement national branding efforts by re-engaging with government agencies, businesses, citizens, cultural institutions and international organizations to realign Sri Lanka’s direction and reclaim the country’s status as a top tourist destination and attractive investment hub. 

- President proposed to remove legal impediments to grow other crops in bare uncultivated land and to allocate 300,000 acres from government lands including State Plantation Corporation, Mahaweli A and B Zones, and Land Reform Commission for large scale agriculture activities.

- He said that all Agrarian Service Centers will be upgraded as Agriculture Modernization Centers. For this purpose, a joint programme consisting of the movement, private sector, farmers and agronomists will be implemented from the 2023 /24 Maha season. For these activities, he proposed to allocate Rs. 2,500 million. 

- In order to provide local and Ayurvedic wellness to tourists, a plan will be launched to establish wellness centers in tourist hotels and resorts in accordance under the concept of “Sri Lankan Wellness”. Rs. 100 million will be allocated for this purpose, he said.

- President said that the government will take action to strengthen and popularize indigenous medicine.

- The strengthening of the infrastructure and laboratory facilities of the Medical Research Institute is being implemented in several phases, the President said. For this, for the year 2024, Rs.75 million will be allocated. 

- He also proposed to allocate Rs. 25 million for the next year under a three-year plan to upgrade the facilities of the National Drugs Quality Assurance Laboratory.

- “We want to fast track the journey towards a production economy. Therefore, SMEs should be further strengthened, encouraged and facilitated. For this purpose, we are introducing a concessionary loan scheme of around Rs. 30 billion with the support of the Asian Development Bank.”

Accordingly, the total amount allocated for the development of SMEs is Rs. 50 billion. As a result a financial space worth around Rs. 250 billion is created, the President said.

- An additional allocation of Rs. 55 billion will be directed towards completing projects that were temporarily halted due to the economic crisis, the President said while delivering the budget speech. 

- President said it is necessary to develop a national programme to enhance English literacy in Sri Lanka. The aim of this programme is to provide English literacy to all by 2034, he said, adding that Rs. 500 million will be allocated to start this ten-year programme.

- A new Technology University to be established in Kandy under the guidance of IIT University in Chennai, India. India will fully support us in this endeavor, he said.

-  President proposed to establish an Education University focused on education by integrating 19 Colleges of Education. 

- President said that steps will be taken to establish four new universities considering the current trends for the technical sector. 

1. Seethawaka Science and Technology University (Lalith Athulathmudali Post Graduate Institute will be incorporated to this University) 
2. Kurunegala Technology University under the Kothalawala Defence University. 
3. Management and Technology University 
4. International University of Climate Change

- President said that laws will be introduced to recognize the private higher education institutions NSBM, SLIIT, Horizon Campus and Royal Institute as private universities. 

- Wickremesinghe said several key institutions will be established under the proposed education reforms. These are the Higher National Council on Education, National Higher Education Commission and the National Skills Commission.

- He said that Rs. 200 million will be allocated to develop the freshwater fish industry in the country. 

- President proposed to allocate Rs. 10 billion for the year 2024 for the renovation of rural roads which have become dilapidated.

- Roads and bridges were damaged due to floods and landslides, the President said. “I allocate Rs. 2,000 million to rehabilitate damaged rural roads.”

- President said that a monthly allowance of Rs. 4,500 will be provided for pregnant women and that Rs. 02 billion will be allocated for this purpose. 

- President Wickremesinghe announced that estate workers will be granted land rights and build houses for them. As the initial step, he said they expect to allocate Rs. 4 billion for this.

- President said that the collection of rent from houses provided on an interest basis to urban low-income families will be entirely halted, and that efforts will be made to transfer ownership of these houses to the occupants. In 2024, nearly 5O000 families will be given the ownership of these houses.

- The monthly Cost of Living allowance for pensioners will be increased by Rs. 2,500 to Rs. 6,025 and will be paid from April 2024. 

- President said the monthly allowance for people with disabilities and kidney patients will be increased by 50% (from Rs. 5,000 to Rs. 7,500) while the allowance for senior citizens will be increased from Rs. 2,000 to Rs. 3,000. This will come into effect from January 2024. 

- The Cost of Living Allowance provided to public sector employees will be increased by Rs. 10,000 effective from January 2024. However, it will be added to their salaries from April 2024, he said. Accordingly the allowance will increase from Rs. 7,800 to Rs. 17,800.

- President Wickremesinghe highlighted that the government allocates Rs. 383 billion monthly for three primary expenditures. This includes Rs. 93 billion for public sector salaries, Rs. 30 billion for ‘Aswasuma’ benefits, medicines and pension payments and Rs. 220 billion to cover loan interest payments.

- The President highlighted the removal of legal obstacles hindering the integration of large-scale, low-cost renewable energy into the primary electricity grid. 

Additionally, he noted on-going efforts to formulate rules and regulations for restructuring the inefficient CEB into a more streamlined and efficient institution 

- The President acknowledged the consistent borrowing from state banks to offset the losses incurred by financially struggling state entities like the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC). 

He underscored the necessity of utilizing taxpayers’ money to safeguard the stability of banks, preventing their weakening and potential collapse.

- During the presentation of the 2024 budget, President Wickremesinghe highlighted the prevention of hyperinflation, attributing the country’s rescue to the successful reduction of the inflation rate to a single digit.

- Unveiling the 2024 budget, President Wickremesinghe pledged his commitment to humbly identify the shortcomings encountered in the journey thus far and rectify them

- The President affirmed that persisting on the challenging course would lead to the creation of a more favourable economic environment. Reflecting on the past year, he expressed absolute confidence that the country is unequivocally on the correct trajectory.

- Presenting the 2024 budget, President Ranil Wickremesinghe urged a cessation of spreading political illusions. 

He called upon everyone to wholeheartedly commit to the country’s betterment, emphasizing a shift from political considerations to a sincere focus on the nation’s well-being.

- Emphasizing the challenging nature of revitalizing a financially troubled nation, President Ranil Wickremesinghe cautioned against constructing ambitious projects solely for political gain. He underscored that pursuing dream palaces for short-term political objectives might risk pushing the country back into bankruptcy

- Highlighting the success of the on-going journey, President Ranil Wickremesinghe attributed it to the government’s economic reform programme. 

He emphasized that this initiative has established a foundation for progress, steering clear of the economic challenges experienced in 2022 .

- Regrettably, some factions within the nation have yet to grasp the gravity of this situation, he said.

- He underscored that the prolonged reliance on election promises by political parties has historically led to the economic bankruptcy of the country. 

- Highlighting a pragmatic perspective, President emphasized that advancing a nation requires more than mere fairy tales. 

- Despite the collective efforts of hardworking individuals, there were others who attempted to hinder the nation’s progress, he charged. 

- Delivering the 2024 Budget Speech, President Ranil Wickremesinghe asserted that Sri Lanka’s economy, which had faced setbacks, successfully regained momentum in the previous year. 

 

---

President Ranil Wickremesinghe, who arrived in Parliament a short while ago, commenced the 2024 Budget Speech in the House. 

The Cabinet of Ministers approved the 2024 Budget proposals during the Cabinet meeting held this morning (13 Nov.).

Accordingly, the Second Reading of Appropriation Bill for the fiscal year 2024, the country’s 78th Budget Speech, is being delivered by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, commencing from 12 noon today.

Thereafter, the Second Reading debate of the 2024 Budget will be held for seven days from November 14 to 21, excluding Sundays.

Furthermore, the vote for the Second Reading of the Budget is scheduled to be held on November 21 at 6.00 p.m.  

According to the Appropriation Act of 2024, the total government expenditure is approximately Rs. 7,833 billion, of which Rs. 3,861 billion has been allocated for Government Service Expenditure.

Moreover, to authorize the receipt of funds from within or outside of Sri Lanka during the financial year 2024, the limit of the amount of loan taken should not exceed 3,900 billion rupees pertaining to the 2024 fiscal year.

Post submitting this Appropriation Bill to the Parliament (first reading), it was submitted to the Committee on Public Finance of Parliament for which the related approval was received on November 09.

Tune into TV Derana and Ada Derana 24 to watch the live telecast of the 2024 Budget Speech.