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PM pledges to reduce budget deficit from 10% to 4% by 2025

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By Saman Indrajith

Prime Minister Mahinda Rajapaksa yesterday (12) asked Parliament to increase the borrowing limit by Rs.180 billion while amending the guarantee limit to 15 percent of the GDP as stated in the Fiscal Management (Responsibility) Act.

Presenting the Appropriation Bill 2020 to the House, the Premier said that the government aimed to reduce the income-expenditure gap to 4 percent of GDP by 2025 which now stood at nearly 10 percent and to reduce the overall debt to GDP to 75 percent of GDP within the next four years.

“It has become a national need to change our mindset to have faith in a production economy that supports exports and domestic production capabilities with fewer imports. A market economy that is dependent only on tea and apparels, with imports which are twice our exports without value additions to local resources and raw materials, will not pave the way for sustainable development. Development aspirations of the people could not be met depending only on import-led consumption and industrialisation without focus on food security and agro industrialisation and allied services based on agriculture, fisheries and livestock development. We have to not only convert a negative economy into a positive high economic growth rate of 6 percent, but such growth should result in the eradication of poverty.”

PM Rajapaksa said that the government had already spent around Rs.70,000 million for identifying COVID-19 patients, quarantine, random testing and related welfare activities.

“Hospital capacity for disease prevention, which was limited to Colombo, has now been increased to 17 hospitals in less than a year covering almost all parts of the country. The number of special care beds for COVID-19 patients has been increased to around 600. Daily PCR testing capacity for the diagnosis of the disease has been increased to an average of 7,500-10,000 tests a day with each test costing around Rs. 6,000, with the daily expenditure exceeding almost Rs. 50 million. The government also spends a sizable amount for the food and welfare of those under 14-day quarantine. In the meantime, an allowance of Rs.5, 000 each is granted to low income families adversely affected by the COVID-19 pandemic. Besides, the government is also bearing expenses related to the payment of the allowances of public servants who are engaged in those services in addition to other health-related expenditure.”

“From 2020 onwards annually, foreign debt servicing amounts to approximately USD 4,200 million. I am happy to report to this House that we have settled all debt obligations including the foreign currency debt dues for the year 2020,” he said.

The Premier said that he would present the proposals to create a modern economy in the country through ‘Vistas of Prosperity’ in his budget speech 2021 to be delivered on 17 Nov. 2020.



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INS Udaygiri departs Colombo concluding formal visit

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The Indian Naval Ship (INS) Udaygiri departed the Port of Colombo today, 11 September 2026, following the successful completion of a four day official visit.

On her departure, the Sri Lanka Navy bade farewell to the ship in accordance with time-honoured naval traditions.

During the visit, naval personnel from both navies engaged in joint initiatives to strengthen bilateral ties. These included a friendly volleyball match, a beach cleanup along the Galle Face
promenade, and a training exercise on Visit, Board, Search, and Seizure (VBSS) conducted by the Sri Lanka Navy Special Boat Squadron (SBS).

As part of the visit, the Indian Navy handed over a consignment of spares and supplies to the Sri Lanka Navy. Visiting crew members also toured key tourist attractions in and around Colombo.

Official interactions of this nature aim to enhance cooperation and knowledge-sharing between the two maritime forces, supporting joint responses to evolving regional maritime challenges.

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President meets representatives from Sri Lanka Scout Association

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A meeting between President Anura Kumara Dissanayake and representatives of the Sri Lanka Scout Association was held at the Presidential Secretariat on Thursday (10)  afternoon .

The President was briefed on the 11th National Scout Jamboree, scheduled to be held in Sri Lanka in January 2027, as well as the current status and progress of its organisational arrangements.

The official logo of the National Scout Jamboree was also presented to the President and officially unveiled on the occasion.

Views were also exchanged on the programmes currently being implemented by the Sri Lanka Scout Association and its future plans.

President Anura Kumara Dissanayake emphasised the importance of expanding the Scout Movement to more schools and the contribution that the Scout Movement can make to the Government’s programmes to combat drugs.

President’s Senior Additional Secretary Roshan Gamage; Chief Scout Commissioner, Attorney-at-Law Manoj Nanayakkara; President of the Sri Lanka Scout Association Ransiri Perera; Deputy Chief Scout Commissioner (Acting) Kapila Perera; Chairman of the Executive Committee Kamalnath Jinadasa; and Jamboree Co-Organising Commissioner, Engineer Amil Abeysundara, were among the senior representatives of the Sri Lanka Scout Association who attended the occasion.

[President’s Media Division]

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Meeting between Catholic religious leaders and President

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A meeting between President Anura Kumara Dissanayake and Catholic religious leaders, led by His Eminence Malcolm Cardinal Ranjith, Archbishop of Colombo, was held at the Presidential Secretariat on Thursday (10).

Special attention was given to the Government’s programme to strengthen coexistence, peace and reconciliation among all communities in the country and to ensure national unity by preventing any form of racist or religiously motivated hate activity.

The progress of investigations into the Easter Sunday attacks was also discussed.

Lengthy discussions were held on measures that could be taken to prevent environmental damage and destruction affecting the lives of the people.

The Catholic religious leaders commended the measures taken by the Government to safeguard trust among all communities and expressed their fullest support for these efforts.

The issues faced by Catholic communities, including infrastructure development in areas where Catholic people reside, as well as measures that should be taken to address these issues, were also discussed at length.

Rev. Fr. Cyril Gamini, Rev. Fr. Julian Patrick and other priests, as well as Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, President’s Senior Additional Secretary Roshan Gamage and others, were also present at the meeting.

President’s Media Division (PMD)

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