Business

Budget 2025: A spectrum of reactions and perspectives

Published

10 months ago

2025/02/19

By Sanath Nanayakkare

The 2025 Government Budget has begun to attract multiple comments from the corporate sector, academics, the government ranks and the Opposition. Reproduced below are a few of them.

First Capital Research’s analysts pointed out that the budget heavily leant towards social welfare and infrastructure development significantly increasing government expenditure.

“The already announced tax revenue measures and the digitalization drive are expected to boost Government Revenue allowing the Budget Deficit to be contained at 6.7% of GDP. A significant portion of increased government spending has been directed towards social spending with increased public sector salaries and pensions, coupled with higher allocation for assistance programs such as Aswesuma and other additional social benefits. While this ensures financial relief for many households, it also influences overall economic behavior in ways that will be felt across society. Efforts have also been made to support the lagging economy via public investments with spending targeted towards road construction, water projects, housing and city developments,” First Capital said.

“Despite the extravagant spending increases, a substantial increase in revenue is also planned with bulk of the revenue increase expected from taxes on vehicles while VAT on digital services, the imposition of corporate income tax on the export of services, and an increase in the corporate tax on cigarettes/liquor, and gaming is expected support to achieve the target. Further support is anticipated via digitalization and the expansion in the economy where the Government expects to provide a boost through spending on infrastructure, with the aim to balance spending with fiscal discipline while fostering long-term economic stability,” First Capital noted.

Government

“The Opposition was helpless when the President presented a progressive budget that brings good times for the people of this country. It was the most successful budget when looking back at the budgets presented in the past few decades,” Deputy Minister of Fisheries Ratna Gamage said.

“The government has delivered the best salary increments for state employees. The basic salaries of all state employees have increased across the board in significant amounts. Deputy Minister of Labour, Mahinda Jayasinghe said.

Academics

“Sri Lanka needs new technology-driven production economy. For that the contribution of the private sector is needed. The budget has not focused on that aspect,” Economist Professor Wasantha Athukorale said.

“There is some risk emanating from the increase of state employee salaries which will cost Rs. 300 billion within the next three years. This is more than what is collected from PAYEE tax. Dhananath Fernando of Advocata said.

Opposition

“The Budget represented the voice of the IMF, the sovereign bondholders and the scam-laden super-rich,” Peratugami Activist Pubudu Jayagoda said.

“The Budget presented by President Anura Kumara Dissanayake was the mother of all deceptions”, SLPP General Secretary Sagara Kariyawasam said.

“When state employees get their salary in April, they will realize that they have been taken for a ride by the government, SJB MP Marikkar said.

Janasetha Peramuna leader Ven. Baththaramulle Seelarathan said the government which came to power through the massive support of Buddhist monks., has not made an allocation in the budget for enhancing the quality of education at Pirivenas although other areas of education had allocations.”

Udaya Gammanpila , Leader, Pivithuru Hela Urumaya said that they have identified 12 projects that no allocations were set apart for, through the budget.

Referring to a popular verse about wearing someone else’s pants and strutting about, Gammanpila said,” “The essence of the Budget reveals that the President is confidently adopting Ranil Wickremesinghe’s policies as if they were his own.

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Business

India pledges $450 million for cyclone recovery while Sri Lanka’s top financial watchdog seat remains vacant

Published

23 hours ago

2025/12/25

Sahan Weerasooriya

Indian External Affairs Minister Dr. S. Jaishankar wraps up his official visit to Sri Lanka on 23rd December,2025

India extended a powerful hand of friendship on December 23, pledging $450 million to help Sri Lanka rebuild from Cyclone Ditwah. The aid, announced by Indian External Affairs Minister Dr. S. Jaishankar, is a lifeline for critical infrastructure, housing and agriculture.

Yet, even as this commitment was made, a crucial question hung in the air: Who will watch the money?

Sri Lanka has operated without a permanent Auditor General for eight months, an independent observer told The Island Financial Review.

“Since April 2025, the constitutional body meant to be the independent guardian of public spending has been led by temporary appointees. This isn’t just bureaucratic delay; it is a self-inflicted wound on democratic accountability,” he said.

He explained that the Auditor General, mandated by the Constitutional Council, is the linchpin that ensures public funds are used with integrity.

“In a nation still recovering from a devastating economic crisis, the AG’s role is the bedrock of trust. This office audits everything from social safety nets to state-owned enterprise losses and, critically, emergency expenditures,” he noted.

“The delay undermines public trust and robust oversight at a time when these are urgently needed. With no permanent AG, the oversight of billions in cyclone relief funds – including India’s generous package – can be fundamentally weakened.”

India’s decision to provide funds despite this oversight vacuum is a profound act of goodwill, the observer said.

“But the question now shifts squarely to the Sri Lankan government: How will it honour that faith? The $450 million is a mirror held up to Sri Lanka’s governance,” he stated.

He urged the Constitutional Council to act decisively to appoint a competent, independent Auditor General through a transparent process.

“This is the cornerstone of ensuring that disaster recovery builds not just physical infrastructure, but also public trust,” he concluded.

By Sanath Nanayakkare

Business

Robust overseas demand for Sri Lanka’s premier tea

Published

23 hours ago

2025/12/25

Sahan Weerasooriya

Categories such as Instant Tea and Tea Bags have recorded encouraging gains in both volume and foreign exchange earnings

Ceylon Tea exports have demonstrated notable volume growth for the first eleven months of 2025, reaching a cumulative total of 239.57 million kilograms. This figure represents a solid increase of 16.35 million kilograms compared to the corresponding period in 2024, signalling robust overseas demand for Sri Lanka’s premier commodity.

The broader trend, however, reveals a dynamic reshuffling among the nation’s key export markets, painting a picture of both promising diversification and shifting global trade currents.

A striking development is the continued ascendancy of Iraq as the single largest importer of Ceylon Tea. During the January to November period, Iraq purchased 36.77 million kilograms, marking a substantial 21% year-on-year increase and firmly securing its top position. In contrast, the traditional powerhouse market of Russia, while holding second place with 19.94 million kilograms, recorded a 13% decline in volume. Other markets show significant movement; Türkiye follows closely in third place, while Libya has emerged as a high-growth destination, witnessing a remarkable 115% surge in imports to claim fourth position. This evolving landscape underscores a strategic shift, where gains in emerging and regional markets are actively counterbalancing softer demand in some established ones.

Categories such as Instant Tea and Tea Bags have recorded encouraging gains in both volume and foreign exchange earnings, indicating a positive consumer trend towards convenience and value-added products. This gradual move up the value chain is crucial for enhancing the sector’s resilience and profitability.

Business

Sri Lanka to host South Asia’s inaugural Reggae festival in Bentota

Published

23 hours ago

2025/12/25

Sahan Weerasooriya

A tribute to Bob Marley" will be held from 27 to 29 March 2026 on the beaches of Bentota

Sri Lanka is poised to enter the regional cultural spotlight as the host of South Asia’s first-ever reggae music festival. “ONE LOVE 2026 – A Tribute to Bob Marley” will be held from 27 to 29 March 2026 on the beaches of Bentota, marking an unprecedented celebration of global reggae music within the Asia-Pacific region.

The landmark announcement was made at a press conference hosted by the ultra-luxury property, NUWA- City of Dreams in Colombo.

The festival represents a significant cultural and tourism initiative, featuring an unprecedented assembly of international reggae talent for the region. The confirmed lineup includes six globally acclaimed acts: Maxi Priest, The Wailers, Julian Marley & Ky-Mani Marley, Inner Circle and Big Mountain.

Organised by One In A Million Entertainment Ltd.—a Sri Lankan-owned firm with headquarters in Europe and Colombo – in strategic collaboration with Caribbean Entertainment, the event builds upon a proven track record of delivering major international entertainment to Sri Lanka. The festival is anticipated to attract thousands of attendees, including local enthusiasts and visitors from key markets such as India, the Maldives, and Bangladesh, as well as Western tourists seeking a tropical retreat.

Aligning with the commemoration of Bob Marley’s 81st birthday, the event carries profound cultural resonance. It also incorporates a charitable component, with a portion of proceeds dedicated to a children’s orphanage water purification project managed by the Indian Cultural Association in Sri Lanka, and to supporting the charitable activities of the Bob and Rita Marley Foundation in Jamaica.

The festival’s international delegation will be accommodated at NUWA Sri Lanka, the flagship ultra-luxury destination of Melco Resorts & Entertainment in Colombo.

Ticket Information: Daily General Admission: LKR 10,000, Daily VIP Admission: LKR 50,000, Early Bird Three-Day Festival Pass (Limited Offer):, General Admission: LKR 25,000, VIP Access: LKR 125,000 Tickets are available via the PickMe Events platform.