Colombo, Sri Lanka – September 2025
The government of President Anura Kumara Dissanayake has unveiled its first full national budget, aiming to deliver 5% economic growth in 2025 while laying the foundation for long-term fiscal stability. This budget comes at a crucial time, as the nation continues to rebuild from its financial crisis and restore investor confidence.
🔹 Key Priorities of the Budget
- Strengthening Revenue Collection: A renewed focus on widening the tax base, improving compliance, and using digital systems for efficient tax administration.
- Digital Transformation: Expanding e-governance and cashless transactions to make Sri Lanka a digitally empowered economy.
- Social Welfare & Human Capital: Enhanced allocations for health, education, and social safety nets, ensuring that growth benefits all citizens.
- SMEs & Agriculture Modernization: Special provisions for small businesses, farmers, and exporters to encourage productivity and diversification.
- Infrastructure Development: Funds allocated for highways, energy, and urban development to support long-term competitiveness.
🔹 Fiscal Discipline
The budget also highlights a gradual reduction of the budget deficit, in line with commitments under the IMF program. This demonstrates Sri Lanka’s resolve to balance growth ambitions with fiscal responsibility, a move welcomed by credit rating agencies and international investors.
🔹 Impact on Businesses & Economy
- Investors will benefit from predictability and transparency in fiscal management.
- The push for a cashless economy opens opportunities for fintech, banking, and digital platforms.
- Enhanced spending in education and healthcare strengthens the long-term workforce quality, attracting knowledge-based industries.
📌 Analysis: While optimism surrounds the growth forecast, business chambers have cautioned that effective implementation of these reforms is critical. Without strong execution, targets could remain on paper.
