February 17, Colombo (LNW): President Anura Kumara Dissanayake, in his much-anticipated address to Parliament, laid out a bold and far-reaching budget for 2025 aimed at both bolstering Sri Lanka’s economic recovery and improving the well-being of its citizens.
The President announced several key initiatives to support vulnerable populations, including an increase in the monthly allowance for kidney patients from Rs. 7,500 to Rs. 10,000, and a rise in the allowance for low-income senior citizens from Rs. 3,000 to Rs. 5,000.
The government also plans substantial investments in key sectors. Notably, Rs. 2.5 billion will be allocated to develop the country’s dairy sector, and Rs. 500 million will be set aside for the cultivation of 16,000 acres of coconut within the Northern Coconut Triangle.
These measures are aimed at boosting local production and improving the livelihoods of those in rural areas.
The President also unveiled the largest-ever allocation for Sri Lanka’s social welfare programme, with Rs. 232.5 billion earmarked for the Aswesuma initiative, which supports low-income and vulnerable groups.
Further commitments were made to improve public healthcare, including an allocation of Rs. 604 billion for the health sector and Rs. 185 billion for the purchase of essential medical supplies.
Education and infrastructure also received significant attention in the 2025 Budget. The President announced an increase in the Mahapola Scholarship allowance from Rs. 5,000 to Rs. 7,500, and a rise in the Grade 5 Scholarship allowance from Rs. 750 to Rs. 1,500 for students from low-income families.
Additionally, Rs. 100 million will be allocated to upgrade the Jaffna Public Library, and Rs. 500 million will be invested in the development of sports schools across five provinces.
In a move to foster greater economic growth, President Dissanayake announced the establishment of a State Development Bank to support Small and Medium Enterprises (SMEs).
Additionally, the government is keen to boost tourism, with Rs. 500 million allocated for the development and marketing of key historical sites such as Anuradhapura and Yapahuwa. A digital ticketing system will also be introduced for these attractions.
The budget also prioritises Sri Lanka’s digital transformation, with a planned allocation of Rs. 3 billion to enhance the country’s digital infrastructure. President Dissanayake revealed that a Digital Economic Authority would be created as part of a phased transition to a cashless economy, ensuring data security and privacy along the way.
On the economic front, the President projected a 5 per cent growth for the year, supported by a National Export Development Plan and a focus on economic diplomacy.
He also outlined a clear path to resume debt repayments from 2028, with a commitment to manage public funds prudently and responsibly.
President Dissanayake also announced a series of fiscal measures aimed at improving Sri Lanka’s infrastructure. Rs. 1 billion will be allocated for the improvement of school infrastructure, while Rs. 750 million will be dedicated to upgrading scanning services at key entry points such as the Colombo Port and Bandaranaike International Airport.
In an effort to curb government spending, the President confirmed that Parliamentarians would not receive new vehicles in 2025, with all luxury government vehicles to be auctioned off in March. Additionally, no vehicle permits will be granted to MPs this year.
Overall, the 2025 Budget demonstrates the government’s commitment to addressing both immediate social needs and long-term economic development. With a total estimated expenditure of Rs. 4,218 billion, the President plans to lay a solid foundation for Sri Lanka’s recovery and growth in the years ahead.
Click Here to view full speech: https://lankanewsweb.net/wp-content/uploads/2025/02/2025-budget-parliament-final.pdf
