Prime Minister Dr. Harini Amarasuriya underscored the importance of implementing the “Clean Sri Lanka” program with humanitarian objectives at its core. Addressing the Colombo District Coordination Committee meeting held at the District Secretariat in Narahenpita, the Prime Minister highlighted the program’s complexity and its broader purpose beyond environmental cleanliness.

During the meeting, key discussions took place on various matters, including the allocation of land for an explosives warehouse in the Colombo District, the future development plan for local government institutions, community empowerment programs, and the execution of the “Clean Sri Lanka” initiative. Additionally, attention was directed toward resolving issues related to paddy lands along the border between Maharagama and Kesbewa, the urgent removal of waste at the Colombo Main Bus Stand, and the cessation of unsafe garbage disposal into the Niripola paddy fields in Seethawaka.

Prime Minister Amarasuriya reiterated that the public had voted in the last election with expectations of change, necessitating the government’s commitment to fulfilling those aspirations. She emphasized that “Clean Sri Lanka” is not merely about environmental cleanliness, policy implementation, or legal enforcement but also about fostering quality in behavior and human relationships.

“The change required must begin at an individual level. People must determine the difference they want to make in their own spaces. Sensitivity and quality service to the public are of utmost importance, ensuring satisfaction with the services provided. This is not a transformation that can be achieved solely through official directives or circulars,” the Prime Minister stated.

“The government remains committed to ensuring the success of the “Clean Sri Lanka” program, engaging all stakeholders in fostering a cleaner, more organized, and community-driven future”.

[Prime Minister’s Media Division]

President Anura Kumara Disanayake stated that the upcoming budget is expected to allocate Rs. 1.35 trillion as government investment capital expenditure, marking the highest amount spent on capital expenditure by a government in recent times.

The President made this statement while addressing the Sri Lanka Economic Summit 2025 held on Tuesday (28) at Shangri-La Hotel, Colombo.

The Sri Lanka Economic Summit 2025, organized by the Ceylon Chamber of Commerce, under the theme “Shaping Sri Lanka’s Future: Transformational Growth Rooted in Sound Economic Policies” aims to prepare Sri Lanka for a transformative shift in South Asia, built on political stability, debt restructuring, and improving sovereign credit ratings. Additionally, the summit envisions achieving overall economic growth in 2025, ensuring the nation’s readiness for a brighter and more stable future.

During his address, President Disanayake further stated that the government anticipates an economic growth rate exceeding 4% this year. He also noted that achieving this target would require providing the necessary facilities to attract and sustain foreign direct investments.

President Disanayake elaborated on the importance of creating an environment conducive to investment and highlighted the critical role of stable economic policies in driving Sri Lanka’s progress.

“We represent a political movement that has not previously held power. If there were doubts about us among business groups, investors, and certain members of the international community, we have been able to dispel those concerns and build confidence in the government’s plans and future direction. This achievement over the past two months is a significant milestone for us.

The government anticipates an economic growth rate exceeding 4% this year. While this is a challenging target in the face of recent economic downturns, we view it as an achievable challenge. We are prioritizing several key sectors to ensure success in this endeavour.

Notably, the upcoming budget plans to allocate Rs. 1.35 trillion for capital expenditure in government investments. This will mark the largest allocation for capital expenditure by any government in recent times.

In the past, due to inefficiencies, previous governments failed to fully utilize such allocations, with only 75% to 80% of the funds being spent. However, we are establishing the necessary mechanisms to ensure that the entire allocation is effectively utilized for its intended purposes.

We recently held an in-depth discussion with Ministry Secretaries and government officials from institutions related to investments. During this meeting, it was revealed that securing approval for an investment in Sri Lanka requires clearance from 82 different institutions. According to the report, obtaining these approvals currently takes over two and a half years.

For environmental approvals alone, there are 11 institutions involved, and the process takes approximately 269 days. In practical terms, this exceeds two years. The government plans to reduce this timeline to less than 82 days.

Similarly, an investment project requires approvals from eight additional institutions, which currently takes around 184 weeks. We aim to reduce this to 102 days.

For evaluating and making decisions on a project, the Board of Investment (BOI) currently takes around 80 days. Our goal is to streamline this process to less than two weeks.

If we expect a higher rate of economic growth, we must ensure that all necessary facilities and processes for attracting foreign direct investment are efficient and investor-friendly.

We also have a significant opportunity to achieve rapid growth in the tourism sector. This year, we aim to attract over 03 million tourists to Sri Lanka.

In addition, there is potential for substantial growth in the information technology and maritime sectors. Operations at the Western Terminal are set to commence this March, and by July, operations at the Eastern Terminal are expected to begin. This will contribute to notable economic progress in the maritime sector. We have identified several key sectors that must be prioritized to achieve our desired economic growth, and we are confident in our ability to meet these goals.

We have also reached an agreement regarding the Sampur Power Plant and are preparing to quickly initiate operations at the supply hub, which has been stalled for a long time at the port. Furthermore, several projects under the BOI have been delayed, and we are actively working to expedite approvals and permits needed to move these projects forward efficiently.

Additionally, we are in discussions with India and China regarding major projects, which we believe will bring in a significant volume of foreign investment. With this confidence, we are moving forward to attract these investments to Sri Lanka.

Previous governments have failed to attract investments effectively, and the Board of Investment (BOI) has not operated efficiently. To address these issues, a new structure has been proposed through the Economic Transformation Act. However, this Act currently lacks a comprehensive implementation mechanism. The present government intends to move forward with the Act, incorporating necessary amendments.

In the past, decisions made by political authorities faced resistance when implementing those decisions by the state mechanism. The state mechanism always assumed that political authority was trying to enforce hidden agendas. However, we have now proven that there are no concealed motives within political authority. Therefore, we believe the state mechanism will cooperate with us. In this process, even the state mechanism’s attitudes must change. If decisions are not made within a specified timeframe, the expected outcomes cannot be achieved. Digital transformation is essential—not only to improve efficiency and convenience but also to elevate the country to a new level. Therefore, digitizing government services is a priority at this stage. The implementation of a Electronic National Identity Card, despite previous misconceptions, presents an opportunity to create a globally relevant identity system. The Indian government has already pledged Rs. 10 billion to support this initiative.

It is clear that a new administrative framework is needed. The existing state administration has proven to be ineffective and corrupt. Additionally, accessing public services comes with a significant financial burden. Some institutions no longer serve a necessary function. While they may have been established to meet past needs, there is currently no proper plan to utilize them effectively. There are multiple state institutions operating within the same sector, which leads to inefficiency. Therefore, these institutions must be consolidated to ensure better management and resource allocation.

Around 90% of Sri Lanka’s export revenue is generated by just a few organizations. Similarly, 69% of customs revenue comes from only 621 files. Furthermore, while the Western Province contributes 37% to the national economy, the Uva Province contributes only 5%. Concentrating the economy in the hands of small groups will not allow for sustainable economic expansion.

The “Aswesuma” program benefits 1.8 million individuals, but there are still more groups that require support. To eliminate rural poverty, it is essential to create new economic opportunities. The current government aims to introduce new sources of economic growth at the village level. When this happens, economic benefits will flow to rural areas, and by increasing the productivity and capacity of the people, rural poverty can be alleviated.

Until now, Sri Lanka’s approach has largely been focused on providing aid to individuals. For example, targeting a single person by giving them a cow or a few chickens as assistance. If such methods had been effective, Sri Lanka would now have numerous large-scale farms. Recognizing this limitation, the government is now planning to empower communities by creating new economic opportunities that focus on sustainable growth.

Within the framework of the International Monetary Fund’s (IMF) criteria, the government is strengthening support programs for those in genuine need. A targeted plan is also in place to stimulate financial growth. Previously, welfare mechanisms in Sri Lanka were heavily politicized. The current administration has ended this practice and established a system to ensure that aid reaches only those who genuinely need it.

Although the term “free market” is often used, the global market is not entirely free. It is divided into different segments, and the government is working to secure a share for our country in this fragmented global market. One of the key strategies being studied is expanding into the global market by leveraging our proximity to India, which is one of our closest markets. The government is reviewing the previous trade agreement with India, considering its advantages and disadvantages, and aims to establish a new trade agreement to better position Sri Lanka in the global market.

The world doesn’t stop based on statements. Currently, declarations made by the United States may lead to conflicting or alarming situations, but the world continues to move forward despite such statements.

To build the country, we must all unite. Providing government services comes at a significant cost. The government workforce stands at 1.3 million, and while there is an excess of lower-level employees, there is a substantial shortage of mid-level staff. If exams were conducted, even individuals employed in the private sector would be interested in government positions. Therefore, a dialogue is needed to transform the private sector into an attractive place of employment as well.

In 1991, the government provided companies with certain benefits, but even after 32 years, a plantation worker still doesn’t earn more than Rs.1,700 daily. This raises questions about the success of those companies. Recently, customs officials opened containers that had been brought in illegally. However, there was no one present to claim responsibility for them. Upon inspection, the containers were found to have labels from a well-known company. This highlights the need for a shift in public perception. While we have introduced good governance practices, the country cannot move forward without a fundamental transformation in mind-set.”

Minister of Labour and Deputy Minister Economic Development Dr. Anil Jayanth Fernando, Central Bank Governor Dr. Nandalal Weerasinghe, Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe, and Senior Presidential Advisor on Economic Affairs Duminda Hulangamuwa, along with officials from Ceylon Chamber of Commerce, participated in this event.

[PMD]

Unions push for DG’s removal, oppose IMF-led anti-corruption plan

By Shamindra Ferdinando

Sri Lanka Customs had cleared thousands of containers, sans examinations, since early last year, though the issue came to light recently as a result of the continuing campaign by unions against the top management, sources familiar with the issue told The Island.

Thee Customs began clearing containers that were marked for examination during President Ranil Wickremesinghe tenure to overcome congestion at the Colombo Port.

The Customs had adopted the controversial strategy early last year to ease congestion, sources said. Clearing of containers had been carried out intermittently during this period, including the run-up to the presidential and parliamentary elections in September and November, respectively.

Stricter internal controls have led to a sharp increase in revenue, with a record collection of over Rs 1 trillion in 2024, compared to the previous year’s Rs 975 bn, sources said.

At one point, amidst the further deterioration of relations between the top management and the unions, the latter had asked the government to remove the Director General of Customs, Sarath Nonis, who received the top post in late July 2022, at the beginning of Ranil Wickremesinghe’s presidency. However, the government hadn’t succumbed to pressure in spite of their own pushing for the changes at the top.

Customs unions, affiliated to the JVP, spearheaded the campaign meant to undermine efforts taken by the top management to enhance revenue as they felt the IMF-led programme hindered their agenda, sources said. For want of a comprehensive coverage of the developments taking place, interested parties influenced the reportage of congestion at the Colombo Port, conveniently not identifying who caused the crisis.

Following the activation of the investigation process that allowed the public to lodge complaints with a special unit, the internal inquiry resulted in the interdiction of four Customs officers.

Both President Anura Kumara Dissanayake and Transport, Highways, Ports and Civil Aviation Minister Bimal Rathnayake have been briefed on the developing situation, sources said, alleging that the relevant House committee should inquire into the circumstances where thousands of containers had been released without examination.

Sources stressed that the containers released over the past several months were those categorised for examination. The containers so categorised had been approximately 40% of the total containers cleared, sources said, disclosing as much as 60% of containers were exempted from examination.

The containers categorized ‘red’ were meant to be physically checked and the main Opposition has asked whether the NPP government interfered in the selection of the released containers.

During 2020 the Asian Development Bank (ADB) has assured funding for the establishment of a container yard at Kerawalapitiya. However, the government failed to implement the plan in 2022, thereby paving the way for the present crisis, sources said, appreciating the decision taken by the incumbent government to reactivate the Kerawalapitiya plan.

Sources said that the failure on the part of the government to resolve issues at the Colombo harbour could have catastrophic results. Over the years, successive governments lacked the courage to rein in unions affiliated to various political parties, sources said.