November 04, Colombo (LNW): Professor Priyanga Dunusinghe of the University of Colombo’s Department of Economics has stated that the current administration has achieved a consistent reduction in the national budget deficit through a more disciplined fiscal approach.
Speaking at a press conference in Colombo, Professor Dunusinghe rejected claims that the government had taken on a significant volume of new debt over the past year, describing such assertions as misleading. He explained that, owing to limited access to international credit markets and bilateral financing, most recent borrowing had been sourced domestically.
“Even major multilateral lenders are now offering fewer concessional loans than before,” he said. “While a deficit persists, the government’s reliance on domestic borrowing has not been excessive. In fact, data shows a clear downward trend in the budget deficit.”
He further noted that projections for 2026 point to a continued decline in government borrowing, reinforcing the view that fiscal management under the present administration remains cautious and controlled.
Meanwhile, Minister of Health and Mass Media, Dr Nalinda Jayatissa, remarked that the government had inherited an economy under considerable strain and was therefore compelled to align its spending with the country’s actual financial capacity.
The Minister emphasised that boosting state revenue had been a central objective of the administration, with several government institutions already surpassing their revenue targets. He added that greater attention was now being paid to ensuring that tax income — estimated between Rs. 3,000 and 4,000 billion annually — is directed towards planned and purposeful public expenditure, aimed at maximising benefits for the wider population.
