Business
Some key aspects of the 2025 Budget Speech
Inclusive growth is the overarching theme of the 2025 Budget Speech. To quote the President cum Finance Minister: “Growth for the sake of growth has little value to society unless it is a means to uplifting the lives of all members of society …. Mass struggles and last year’s election saw people asserting their political rights. What is necessary is for economic rights to be similarly asserted. This is the philosophy of this Budget.”
Budget in a Nutshell
The need to modernize the economy through adoption of digital technologies is emphasized. We are told that while the government will not tinker with ongoing IMF-supported policy reform agenda aimed at restoring macroeconomic stability and debt sustainability, it will strengthen social safety nets to protect the poorest and most vulnerable segments of society from the adverse economic impact of these reforms, namely a steep increase in the general price level in recent years. Concrete steps will be taken to increase tourism, exports of goods and services, and foreign direct investment inflows. Commercialization of agriculture will be promoted so as to improve food security. Education, health and infrastructure development will be given high priority in terms of resource allocation. The “Clean Sri Lanka Program” will tackle pressing cultural, environmental, and governance issues through the three main pillars of social development, environmental development, and ethical development. Measures will be introduced to revive the small and medium enterprise sector, which was crippled by the import ban of 2020 (the Covid-19 year). 2 industrial zones and 5 industrial parks will be set up in various parts of the island with a view to expanding the manufacturing base. Public sector salaries will be revised after a lapse of nearly ten years with payment of the minimum monthly basic salary increase of LKR 15,750 to be staggered over three years.
Fiscal Targets
The specific proposals, including the corresponding budgetary outlays, by and large are consistent with the overall thrust and tenor of the Speech. One wonders, however, whether the 2025 budget estimates are realistic. The primary balance target is 2.3% of GDP, as per the parameters outlined in the IMF loan agreement. Primary balance equals revenue plus grants minus non-interest spending. Sri Lanka did well to achieve a primary balance/GDP ratio of 2.2% in 2024. But to achieve the target of 2.3% in 2025, revenue plus grants must increase by around LKR 900 billion to offset a LKR 1 trillion increase in the expenditure estimate. Tax revenue increased by LKR 984 trillion in 2024. As to whether the revenue authorities can deliver a similar performance in 2025 remains to be seen.
Business Climate
What is not clear from the Budget Speech is the kind of business climate the current regime intends to create for stimulating rapid private sector development. This is of key importance, given that the private sector is the engine of growth. Since coming into power in late 2024, the government has been showing an inclination to control prices of various consumer goods. By distorting market forces, price controls invariably create acute shortages and black markets. It was the government’s misguided attempt to control the rice market that caused an acute shortage of rice in late 2024/early 2025. The result was widespread hunger and deprivation among the urban and rural poor.
Price controls and other protectionist measures such as permits, licenses, and high import tariffs do not produce inclusive growth. They have the opposite effect by depressing growth and widening income disparities. As the old saying goes, “The road to hell is paved with good intentions.”
By Seneka Abeyratne
ASUS and Republic of Gamers (ROG) Sri Lanka officially launched their latest suite of computing innovations, setting a new benchmark for ultra-portability, AI acceleration, and next-generation gaming experiences in the country.
Unveiled at Shangri La, Colombo on May 7th, the lineup includes five cutting-edge laptops designed to cater to students, professionals, gamers, and creators, marking a transformative leap for Sri Lanka’s tech landscape.
Leading the charge is the ASUS Zenbook A14, the world’s lightest Copilot+ PC at just 980 grams. Featuring a durable Ceraluminum chassis, Snapdragon X processor, and a 45 TOPS NPU for AI tasks, it boasts an ASUS Lumina OLED display, up to 32-hour battery life, Wi-Fi 7, and 1 TB SSD storage. Meanwhile, the gaming-focused ROG Strix SCAR 16/18 and Zephyrus G16 pack Intel Core Ultra 9 processors and NVIDIA RTX 5090 GPUs, paired with 240Hz Mini-LED displays, customizable RGB lighting, and advanced cooling systems for marathon sessions.
“Our mission is to push boundaries in performance and design,” said Eric Ou, ASUS South Asia’s Regional Head, emphasizing the brand’s commitment to innovation. The new devices blend portability with power, offering AI-enhanced workflows and gaming prowess.With multi-day battery life and groundbreaking specs, ASUS aims to redefine how Sri Lankans work, create, and play.
By Sanath Nanayakkare
Business
Direct Kitchens opens flagship Colombo showroom blending Australian luxury design with local elegance
Direct Kitchens, Melbourne’s premier designer and manufacturer of high-end custom kitchens, marked a significant milestone with the launch of its first international showroom in Colombo, bringing over 40 years of world-class kitchen design expertise to sophisticated Sri Lankan homeowners. Located at No. 314, R.A. De Mel Mawatha, Colombo 03, the new Experience Centre reflects the brand’s commitment to luxury, craftsmanship, and innovation.
The soft launch of the showroom was attended by select invitees including Nalin Herath, Chairman and Managing Director of Home Lands Group, who graced the occasion as the Chief Guest, along with industry professionals and well-wishers.
For over three decades, Direct Kitchens has earned a stellar reputation in Australia for creating bespoke, luxurious kitchens that are as functional as they are visually stunning. From sleek modern designs to timeless French provincial and country styles, each kitchen is crafted with precision, using the finest materials and cutting-edge technology. The brand also specializes in a range of custom interior solutions including pantry units, wardrobes, closets, laundry units, and more—tailored to suit the lifestyle and aesthetic of each client. Direct Kitchens Sri Lanka is a subsidiary of Home Lands Group, Sri Lanka’s leading real estate solutions provider.
The Colombo Experience Centre marks the beginning of Direct Kitchens’ global journey in redefining sophisticated living spaces. Visitors to the showroom can explore a curated selection of premium kitchen displays, cabinetry styles, finishes, and fittings—guided by a team of expert designers who offer personalized consultations and complete project management services.
Speaking at the launch, Amaya Herath, Director of Direct Kitchens Sri Lanka, stated, “We are proud to bring the legacy of Direct Kitchens to Sri Lanka and offer homeowners here access to a new standard in luxury interior solutions. Our Experience Centre is more than just a showroom—it’s a space where creativity, lifestyle, and functionality meet. With our decades of expertise and design excellence, we look forward to helping our clients transform their homes into elegant, purposeful spaces.”
Harold Samuel, a British real estate mogul is credited with the phrase- location, location, location, a sentiment that will forever be pertinent and one that is evident when you behold W15 Ambuluwawa, a white clad stunning boutique hotel perched atop an outcrop of land in Gampola, offering 360-degree views of hills wearing jade and crowns of white clouds. It is a magical place that invites guests to leave the ordinary behind and step into the extraordinary and be enveloped with an utter stillness of being and a peace that transcends quiet.
W15 Ambuluwawa is indeed a rare find, a gem that has been recently added to adorn the W15 Collection, a group of luxurious boutique hotels dotted across some of the most beautiful locations in Sri Lanka. The first boutique hotel to be opened within the Ambuluwawa biodiversity project, W15 Ambuluwawa, with one master suite, 4 deluxe and 3 standard rooms, has been designed with responsibility to the surroundings and sustainability at its core. The ingenuity of architectural genius is displayed from every space in this breathtaking property as the exterior beauty is captured through floor to ceiling windows, a spacious patio and a sundeck.
Guests can expect W15’s signature exceptional service with a large staff cadre and a personal butler assigned to each room, an extraordinary al-fresco dining experience where tastebuds will be tantalized while nature paints the skies with vivid hues and birdsong provides a harmony of background music. Evenings are for breathtaking sunsets to be imbued into your restless soul while you sip a sundowner on the patio.
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