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President Anura Kumara Dissanayake’s 2025 budget lays out a bold and ambitious framework for economic stability, social welfare, and national development. With a keen focus on prudent financial management, strategic investments, and long-term sustainability, the budget aims to address pressing issues while paving the way for a stronger economic future.
Strengthening the Economy with Fiscal Discipline
One of the core principles emphasized in the budget is the responsible management of limited tax revenues. The government has pledged to prioritize spending, reduce corruption, and ensure economic stability. With a target of 5% economic growth in 2025, the administration seeks to continue strengthening the rupee against the US dollar while building investor confidence. A key highlight in this regard is the amendment of the Economic Transformation Act and the introduction of a new Public-Private Partnership Act to attract more investments.
Investments in Education and Research
Recognizing education as a fundamental pillar for national progress, the government has made the highest-ever allocation for the sector. A significant Rs. 135 billion has been earmarked for university development, while Rs. 500 million has been set aside to review and enhance the school system. Additionally, Mahapola scholarship installments will increase from Rs. 5,000 to Rs. 7,500, providing much-needed financial relief to students. In a move to encourage innovation, Rs. 1 billion has been allocated for the commercialization of research and new innovations.
Healthcare: A Historic Commitment
The budget allocates an unprecedented Rs. 604 billion to the health sector. Key initiatives include Rs. 185 billion for the procurement of drugs and medical equipment, Rs. 200 million for the establishment of an autism treatment center at Ridgeway Hospital, and Rs. 1,000 million for enhancing scanning services at major ports and airports. In an effort to combat malnutrition, Rs. 7,500 million will be spent on nutrition packs for pregnant mothers, while Rs. 5,000 million has been designated for the distribution of Thriposha.
Social Welfare and Women’s Empowerment
A total of Rs. 120 million has been allocated to support women’s empowerment programs. This reflects the government’s commitment to gender inclusivity and the creation of equal opportunities in various sectors. Additionally, Rs. 1,000 million has been allocated for school meal programs to ensure children receive adequate nutrition.
Infrastructure and Digital Transformation
The government has placed significant emphasis on infrastructure development and digital transformation. Rs. 100 million will be allocated for the Jaffna Library’s infrastructure, alongside Rs. 200 million for other libraries across the country. A substantial Rs. 500 million has been set aside for developing tourist attractions in Anuradhapura and Yapahuwa, and digital ticketing will be introduced to boost tourism efficiency.
On the digital front, the government will allocate Rs. 3,000 million to strengthen the digital economy and improve public services. Efforts to reduce the circulation of physical currency and strengthen data protection laws signal a shift toward a modernized financial ecosystem.
Economic and Industrial Reforms
A simplified tariff framework will be introduced to ensure easier access to high-quality raw materials, while a new Customs Act will be enacted to facilitate trade. The Bimsaviya Program will be expedited to streamline land ownership processes, and state-owned lands will be leased for productive economic activities.
The government also plans to auction luxury government vehicles in March and will not allocate funds for new MPs’ vehicles this year. This move highlights the administration’s focus on reducing unnecessary expenditures and directing funds toward critical sectors.
Sports and Youth Development
With a vision to promote sports and youth engagement, Rs. 500 million has been allocated for the development of sports schools across five provinces. This investment aims to enhance Sri Lanka’s sports infrastructure and create more opportunities for young athletes.
A Promising Road Ahead
Sri Lanka’s 2025 budget presents a roadmap for economic stability, social upliftment, and sustainable development. By prioritizing education, healthcare, digital transformation, and infrastructure, the government is taking significant steps toward long-term national progress. The commitment to reducing corruption, maintaining fiscal discipline, and ensuring economic stability further solidifies the vision for a prosperous Sri Lanka in the years to come.
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