News
Prez assures Germany of climate conducive for investments
President Anura Kumara Dissanayake, during his recently concluded visit to Germany, assured that his administration would create a conductive and transparent investment climate and invited the business community to make use of opportunities presented by Sri Lanka’s development potential and strategic location.
President Dissanayake said so addressing a business forum organised by the Sri Lanka Embassy in Berlin, the German Chamber of Commerce and Industry (DIHK), and the German Asia-Pacific Business Association (OAV), at the headquarters of the DIHK,
The visit took place from 11 to 13 June 2025. The Foreign Ministry here said that there were several bilateral political meetings, a business roundtable, and an engagement with the German tourism industry. The visit primarily focused on strengthening economic cooperation between the two countries, including considerable opportunities in emerging areas, the FM said.
However, the President’s itinerary didn’t include a meeting with Chancellor Friedrich Merz.
The following is the text of the FM press release issued over the weekend: “President Dissanayaka undertook the visit at the invitation of the President of Germany, Frank-Walter Steinmeier, who welcomed him at the Bellevue Palace, in Berlin, on 11 June 2025, with a ceremonial Guard of Honour accorded by the German Armed Forces.
During the bilateral talks, the two heads of state focused on further strengthening the cordial bilateral relationship and utilising emerging economic opportunities in areas such as vocational training and the tourism industry. President Dissanayaka also briefed the German President on the recent developments in Sri Lanka, including the economic stabilisation and reconciliation efforts undertaken and envisaged future action.
The German Foreign Minister Dr. Johann Wadephul and German Federal Minister for Economic Cooperation and Development Ms. Reem Alabali-Radovan called on President Dissanayake. The discussions with the German Foreign Minister Dr. Wadephul focused on increasing the growing bilateral exchanges between the two countries, economic stabilisation efforts, enhancing German investment, the GSP plus trade facility with the European Union, and strengthening cooperation in the multilateral arena.
During the meeting with Minister Alabali-Radovan, President Dissanayaka appreciated the development assistance from the German government, which had benefited the country for more than 65 years, with recent examples being the German-Sri Lanka Friendship Maternity Hospital in Galle and the German Technical Training Institute in Kilinochchi. Discussions also focused on future projects, especially expanding vocational education and training opportunities.
The State Secretary of the German Federal Ministry for Economic Affairs and Energy, Dr. Thomas Steffen called on Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath and discussed Sri Lanka’s recent economic progress, improved political stability, and the government’s ongoing efforts to create a more investor-friendly environment.
At a meeting with key tourism industry associations in Germany, focused on outbound tourism, President Dissanayake explained the plans of the government to protect the sustainable nature of the tourism industry of Sri Lanka and to address constraints such as human resource development to ensure the continued growth of the vital industry. The President also addressed aspects related to investment in the tourism industry.
The President was accompanied to the meetings by the Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath; Sri Lanka’s Ambassador to Germany Varuni Muthukumarana; Director General for Europe and North America at the Ministry of Foreign Affairs, Foreign Employment and Tourism Sugeeshwara Gunaratna; Chairman of the Board of Investment Arjuna Herath; and other Senior Government officials.”
News
Report on the Final Budgetary Condition (Annual Report) – 2025 submited to parliament
As per the provisions of section 51 of the Public Finance Managaement Act No. 44 of 2024, the public should be issued with a report on the final budgetary situation for each year and, the report is then published in the official website of the Ministry of Finance, Planning and Economic Development.
Thereby the report has to be submitted to the Parliament. The final budgetary situation report (Annual Report) – 2025 has been prepared by the Ministry of Finance, Planning and Economic Development and published. The report contains the Public Finance Policy, strategies and challenges, economic trends in 2025, macro – economic and socio – economic indicators covering all sectors of the economy as well as description on the global economic growth.
Furthermore, it accompanies a detailed description government revenue and expenditure, cash flow management, financing the budget deficit and the loan structure.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the Report on the Final Budgetary Condition (Annual Report) – 2025 to Parliament.
Business
Cabinet nod to accept increased Loan Grant provided by the Asian Development Bank under Policy Based Loan Facilities – 2026
Approval of the Cabinet of Ministers was granted at their meeting held on 16.03.2026 to obtain United States Dollars 380 million from the policy – based loan facilities of the Asian Development Bank in the year 2026.
United States Dollars 100 million out of it is allocated for Trade, Investment and Industries Development Programme – Sub Programme 1. However, amidst the economic uncertainty resulting from the current Middle East crisis and the climatic tragedies, the Asian Development Bank has agreed to assist
by increasing a supplementary financing package of United States Dollars 100 million so that it will beMincreased up to United States Dollars 200 million.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to take further measures to obtain the said loan grant.
News
Submission of Revenue Protection Order Prepared under the Provisions of the Revenue Protection Act No. 19 of 1962 to the Parliament for its approval.
Approval of the Cabinet of Ministers was given at the meeting held on 23.02.2026 to impose the custom import duty amounts under four (04) categories as 0%, 10%, 20%, and 30% which had been executed only under three (03) categories in order to increase the target export income of the country, to execute the
recommendations of the national customs duty policies committee, and to implement new national sub division customs codes for promoting the local agricultural and industrial sector.
Imposing provisions in relation to the above, the Revenue Protection Order – No. 01/2026 under the Revenue Protection Act No. 19 of 1962 has been published in the extraordinary gazette notification No. 2478/03 of 03.03.2026.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the said revenue protection order to Parliament for its concurrence.
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