News
Lanka declares China as its closest friend
Sri Lanka and China could cooperate within the framework of the Belt and Road Initiative, turning the Colombo Port City and the Hambantota Port into two major engines to boost Sri Lanka’s economic development, pushing for the country’s industrialization, and enhancing the country’s capacity for independent development, Chinese State Councilor and Foreign Minister Wang Yi told Foreign Minister Dinesh Gunawardena on Wednesday, during a phone conversation.
The call was made on Gunawardena’s suggestion and Wang assured that the two countries are strategic cooperative partners of sincere mutual assistance and lasting friendship.
“Over the past year, the two countries joined hands to fight against the pandemic and supported each other, and their bilateral relations maintained a strong development momentum,” Minister Wang Yi said.
Noting that this year marked the 100th anniversary of the founding of the Communist Party of China (CPC), Wang said that China had won the victory in ending extreme poverty and achieved great results in building a moderately prosperous society in all respects, and would embark on a new journey toward fully building a modern socialist country.
“China’s development means a growing force for peace and the growth of developing countries, which will provide more development opportunities for developing countries, including Sri Lanka. We must make solid progress in cooperation within the framework of the Belt and Road Initiative, turning the Colombo Port City and the Hambantota Port into two major engines to boost Sri Lanka’s economic development, pushing for Sri Lanka’s industrialization, and enhancing the country’s capacity for independent development,” he said.
Minister Gunawardena said Sri Lanka regarded China as its closest friend and thanked China for its long-term assistance for Sri Lanka’s economic development, improvement of people’s livelihood, and dealing with internal and external challenges. The Sri Lankan FM highlighted that the Colombo Port City, Hambantota Port were key projects for Sri Lanka’s future development, and welcomed more Chinese investment, businessmen and tourists.
“Some Western countries, including the United States are using alleged human rights issues to intervene in the internal affairs of developing countries including Sri Lanka. They use the United Nations (UN) Human Rights Council as a platform to exert pressure on developing nations. I hope that China will continue to uphold justice and stand with developing countries,” Gunawardena said.
Wang said that some Western countries are used to pressuring developing countries on the pretext of human rights, adding that China firmly opposed it, and was willing to unswervingly support Sri Lanka to jointly safeguard the legitimate rights and interests of developing countries, the basic norms governing international relations, and the purposes and principles of the UN Charter including non-interference in other countries’ internal affairs.
Gunawardena warmly congratulated China on the 100th anniversary of the CPC’s founding and that China had under the leadership of the CPC, completely lifted itself out of poverty, made great development achievements, and significantly improved the livelihood of its people.
Gunawardena said China had also led other countries on the way towards common development, and made vital contribution to human civilization. Sri Lanka appreciated China’s fair stance on human rights issues and was willing to join hands with China to safeguard fairness and justice in regional and international affairs. “Those allegations about Xinjiang and Hong Kong are just baseless. We steadily support China on the Xinjiang, Hong Kong related issues and the One-China Policy”, he added.
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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