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Rs. 10 bn. allocated for future elections  – Siyambalapitiya

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State Minister for Plantations, Enterprise Reforms and Finance, Mr. Ranjith Siyambalapitiya, has announced that a dedicated allocation of Rs. 10 billion has been reserved for potential future elections. This provision, while not explicitly outlined in the budget proposals, has been included in the estimates.

Furthermore, the State Minister has conveyed that the Executive Committee of the International Monetary Fund (IMF) is scheduled to deliberate on the release of the second instalment of the extended credit facility to Sri Lanka on December 6th.

State Minister for Plantations, Enterprise Reforms and Finance, Mr. Ranjith Siyambalapitiya, made these remarks during his participation in a press briefing held at the Presidential Media Centre (PMC) today (21), under the theme ‘One Way to a Stable Country’.

Speaking further, State Minister Siyambalapitiya highlighted the challenges faced in formulating this year’s budget. He underscored that in 2023, the government’s revenue experienced a 16% decline from the targeted amount, a circumstance attributable to the prevailing negative economic conditions. Addressing the inherent limitations faced during the budget preparation, he acknowledged the constraints in pursuing objectives such as maintaining a robust primary account.

Moreover, in addressing the budget deficit, when expenditures surpassed income, resorting to borrowing became necessary. However, the forthcoming year presents a constrained borrowing environment, with limited space available. Previously, local borrowing was facilitated through various accessible means, but with the implementation of the new Central Bank Act, borrowing has been subject to restrictions. The government now has the authority to borrow only in response to sudden announcements by the Central Bank.

Despite accusations labelling this year’s budget as an election-oriented one, it is crucial to recognize the imperative of responding to the challenges faced by a society under considerable strain. In such a context, it becomes obligatory to address the needs of those significantly impacted by economic adversity.

We have allocated Rs. 10 billion for upcoming elections, although this provision was not formally presented in the budget proposals but has been factored into the estimates.

Furthermore, it is essential to recognize that no nation has advanced without a sustainable stream of tax and government revenues. When we assumed these responsibilities, the tax structure was predominantly comprised of 80% indirect taxes and 20% direct taxes. Over time, we have strategically reduced the indirect tax rate, bringing the direct tax rate closer to 30%.

Additionally, the State Financial Management Responsibilities Act No. 03 of 2003 mandates maintaining the budget deficit at 5%, a target that, in practice, has proven challenging. Over the last two decades, this target was achieved only in 2016 and 2017. Sustaining this requires a rigorous approach involving substantial expenditure reductions and revenue generation. Notably, public welfare expenditure, which stood at 65 billion, is projected to rise to 209 billion this year. Efforts are underway to implement practical reforms, including amendments to certain laws, to align legislation with operational realities. Activating dormant tax revenues is also a priority in our pursuit of fiscal sustainability.

Moreover, there is a potential to elevate the state income ratio from its current 8.3% to 10.1% by the end of this year, and following the implementation of the 2024 budget, this ratio could further rise to 12.3% by the close of that year. Regardless of the political party in power, sustaining a nation necessitates the continual growth of state revenue.

In a remarkably short period, we successfully alleviated the frustrations associated with the historical instability of the state. Concurrently, efforts are underway to enforce the Anti-Corruption Act, aligning with the commitments made under the agreement with the International Monetary Fund.

Furthermore, plans are in place to conclude the electronic tax information gathering program and the Revenue Administration Management Information System 2.0 (RAMIS 2.0) project by the year’s end. The upcoming weeks are deemed pivotal for Sri Lanka’s economic trajectory. On December 6, the Executive Committee of the International Monetary Fund is set to convene and deliberate on the release of the second instalment of the extended credit facility. Furthermore, discussions and finalization of the proposal for the restructuring of bilateral debt are scheduled.

(President’s Media Division)

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Vijitha – Chung hold talks on US tariffs

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Minister of Foreign Affairs, Foreign Employment and Tourism – Vijitha Herath has held a discussion with the US ambassador in Sri Lanka – Julie Chung on re-balancing trade ties between the two countries.

The discussion was held at the Ministry premises today (April 07).

Taking to X, the ambassador has said, Had a productive discussion with Foreign Minister Vijitha Herath @HMVijithaHerath on rebalancing Sri Lanka’s trading relationship with the U.S. I emphasized the importance of reciprocal treatment for U.S. exports. A fair, balanced trade relationship supports economic growth, creates jobs, and strengthens industries in both our countries.”

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SLC awards annual contracts to 45 1st-class cricketers for 2025

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Sri Lanka Cricket (SLC) awarded annual contracts to 45 First-Class cricketers for the 2025 Domestic Cricket

Season as part of its ongoing program to strengthen the country’s talent pool.This initiative, spearheaded by the Executive Committee of Sri Lanka Cricket, under the leadership of Honorary

President Mr. Shammi Silva, aims to support and develop promising first-class players.

The contracted players have been categorized into four tiers—A, B, C, and D.

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Talks held on 4th review of IMF programme

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A meeting between President Anura Kumara Disanayake and representatives of the International Monetary Fund (IMF) was held this morning (April 07) at the Presidential Secretariat.

The discussions centred on the preliminary review associated with the fourth tranche of Sri Lanka’s Extended Fund Facility (EFF) arrangement with the IMF.

Key focus areas included Sri Lanka’s progress thus far under the IMF-supported programme and the next steps required to achieve the country’s future economic targets.

Both parties also exchanged views on emerging economic challenges, particularly in light of new trade tariffs proposed by the United States and their potential implications for Sri Lanka.

The IMF delegation was led by Mr. Sanjaya Panth, Deputy Director for the Asia and Pacific Department and included Mr. Peter Breuer and Mr. Evan Papageorgiou, Senior Mission Chiefs.

Representing the Government of Sri Lanka were Minister of Labour and Deputy Minister of Economic Development Anil Jayantha Fernando, Deputy Minister of Finance & Planning, Harshana Suriyapperuma, Governor of the Central Bank Dr. Nandalal Weerasinghe, Senior Economic Advisor to the President Duminda Hulangamuwa and Secretary to the Ministry of Finance Mahinda Siriwardena.

(President’s Media Division)

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