February 27, Colombo (LNW): Sri Lanka’s 2025 national budget has been hailed as a pivotal moment in the country’s ongoing recovery, balancing urgent public needs with long-term fiscal responsibility.
Treasury Secretary Mahinda Siriwardana acknowledged that whilst the budget prioritises fiscal discipline, it also ensures vital support for the nation’s most vulnerable communities, investing heavily in social welfare, infrastructure, education, and healthcare.
Delivering the keynote address at the Softlogic Investor Forum in Colombo, Siriwardana stressed that the budget outlines a clear roadmap for Sri Lanka’s future, but he urged all sectors to collaborate in turning this vision into reality.
“This is a critical turning point for the country,” he noted, “and it’s up to us all to work together to ensure its success.”
Siriwardana pointed out the unusual continuity in Sri Lanka’s economic strategy, which has remained largely stable despite political changes over the past few years.
Unlike the policy shifts that followed the 2019 political transition, the current approach has remained consistent, which he described as a rare and promising sign for the country’s future.
“The stability we’re now witnessing in macroeconomic policy, even through an election cycle, is something we haven’t seen before,” he observed. “This stability is not without its critics, but the positive results speak for themselves. We have restored stability, regained investor confidence, and are on the right path towards debt sustainability.”
Highlighting the progress made over the past three years, Siriwardana underlined the importance of staying committed to the ongoing economic reforms.
Although these reforms have been challenging, they are starting to show tangible benefits, including an improved fiscal position and increased international trust.
Whilst acknowledging the hardships of reform, he pointed to the country’s stronger position today, which has allowed it to engage more effectively with international partners.
The government’s fiscal discipline has made targeted relief for vulnerable groups possible, without derailing the reform process.
Looking ahead, Siriwardana expressed confidence that Sri Lanka’s ongoing relationship with the International Monetary Fund (IMF) could be the last, provided the country remains resolute in its reform efforts.
“This must be the final IMF programme,” he stated. “To make that a reality, we must avoid policy missteps and continue strengthening our economic foundations.”
He concluded by emphasising that the hardest reforms have already been implemented. The focus now, he said, is on consolidating these changes and ensuring their long-term success. “If we stay disciplined, Sri Lanka will emerge stronger and more prosperous in the years ahead.”
