Govt will increase benefits for people as revenue buffers strengthen, says President

Urges unity over deep political divisions for effective crisis management

Says ‘intricate’ foreign debt restructuring will take up to six months

Invites Opposition to confer with institutions that foster international financial stability

by Sanath Nanayakkare

As government revenue increases, measures will be taken to increase benefits for the people accordingly, President Ranil Wickremesinghe said yesterday during the inaugural address of the 5th session of the 9th parliament of Sri Lanka.

“The tangible growth we are experiencing is evident in the current societal discussions. Not long ago, conversations cantered around the challenges posed by power cuts, demanding uninterrupted electricity. Today, the discourse has shifted to electricity bills. Previously, concerns were raised about the exorbitant black market price of petrol, with talk of spending days in fuel queues. Now, the focus is on new oil companies investing in Sri Lanka. Issues related to the scarcity of vegetables have transformed into discussions about the price of carrot. The prior scarcity of paper for book printing is now replaced by discussions on VAT,” he said.

Reproduced below are some key highlights from his speech.

“VAT poses a burden for many, and we are not oblivious to this fact. We are systematically addressing this issue. In 2022, there were 437,547 registered tax payers, a number that surged to 1,000,029 by the end of 2023—an impressive 130 per cent increase. As the tax network expands, the burden on individuals and organizations will diminish. Continuing our economic reforms, we aim to alleviate the tax burden as the economy stabilizes. There is also room for potential revision of VAT percentage.”

“All these endeavours are undertaken amid a substantial debt burden. Throughout the past, concerted efforts have been made to formulate a strategic plan for repaying this debt. The domestic debt restructuring plan has been successfully executed as the first step, and a policy agreement for restructuring has been reached with foreign creditors as the second step. Negotiations with private creditors are presently in progress.”

“Anticipated in the initial six months of this year, the intricate restructuring plan is poised to form the foundational framework for restoring our economy to normalcy. It will serve as a pivotal juncture in alleviating the burden of debt.”

Concluding his speech the President in addition to Lord Buddha’s teachings quoted philosophical comments made by several intellectuals in the East and West including 19th century author Helen Keller, Tamil poet Bharathi and Chinese Philosopher Confucius and called for political unity over divisions and insisted on cleansing the hearts for greater good of the country than seeking political power and privileges.

“Progress cannot be achieved solely through political aspirations, unfulfilled promises, or election-focused slogans. Our commitment is to the on-going nation building program, ensuring a prosperous future for the youth. If you endorse the idea of engaging in this exercise, I am prepared to extend invitations to top officials from international financial institutions including the IMF and the World Bank, to visit Sri Lanka to have deliberations with you,” the President said.