President Anura Kumara Dissanayake yesterday told Parliament that Sri Lanka’s economy, which had collapsed under previous administrations, has made significant strides under the new Government — with the highest export revenue in history recorded in the first six months of this year.
Speaking during the adjournment debate on the current economic situation, the President said the Government is committed to diversifying export markets to reduce dependence on a handful of countries.
“Around 25% of our exports go to the United States and 23% to the European Union. Any tax changes in these markets have a major impact on Sri Lanka. That is why we are expanding into other high-potential markets,” he said.
According to the President, exports to the African market have increased by 57% and to the Asian market by 26%compared to June last year.
He noted that while no final agreement has yet been reached on tariff rates between Sri Lanka and the United States, negotiations have led to a reduction in the US-imposed tariff to 20%, which he described as a significant milestone.
The President also stressed that the Government will provide infrastructure and facilities for industrialists, but emphasised the importance of proper tax compliance. He revealed that 200 major tax defaulters owe between Rs. 100–150 billion in unpaid taxes, and efforts are underway to encourage payment.
On tourism, he reported a 10% increase in revenue compared to last year, projecting 2025 to be the highest-earning year for the industry.
Foreign Direct Investment (FDI) has also surged, with a 101% increase — reaching US$ 507 million in the first six months of this year compared to US$ 252 million in the same period last year. The Government expects to exceed US$ 1 billion in FDI for 2025. Domestic investment, through the Board of Investment, has grown by 18% year-on-year.
President Dissanayake said that immense sacrifices over the past year have put the economy on a stable and strengthened path, and that the upcoming budget will continue to channel economic benefits to the people.
Dismissing predictions of an economic collapse, the President said:
“Those who constantly dream of an economic collapse should choose another political path. That will not happen under this Government.”
