The Hon. (Dr.) Dammika Patabendi - Minister of Environment

¶ 01 Hon. Deputy Speaker, I am pleased to join this Adjournment Debate, moved by Hon. Sunil Rajapaksha, on the economy based on the Central Bank’s Annual Economic Review 2025.

¶ 02 The year 2025 is special. Not only economically, but socially and morally, the country had collapsed; 2025 marked a fresh start. As a nation, we achieved many victories that year—especially economic ones recorded by the Central Bank.

¶ 03 On 7 November 2025, the 82nd Budget was presented—our Government’s second Budget that year (the first on 17 February 2025). For decades Budgets carried discouraging data; in 2025 we changed indicators and brought a Budget of new hope.

¶ 04 In our second Budget we reduced the fiscal deficit. From 6.8 percent of GDP in 2024, we brought it down to 2.3 percent in 2025—the lowest deficit since 1956. We also recorded a current account surplus—the first since 1987. In a February lecture in Colombo on AI and digital economic growth, Central Bank Governor Dr. Nandalal Weerasinghe noted that the past two years were the best years of fiscal discipline and highest revenue. Thus 2025 recorded a series of economic achievements.

¶ 05 He also stated that before the crisis, the Treasury was running a trillion-rupee deficit; by our second Budget in 2025, we turned it into a trillion-rupee surplus. We also increased revenue above expenditure in 2025. These are significant gains.

¶ 06 What is the wider importance? For decades, a pessimism about public finance was entrenched: that the deficit always rises; that revenue can never exceed expenditure; that the Treasury can never be free of debt reliance. In 2025 we changed that mindset—this is historic. Within our first year, we shifted the public’s entrenched pessimism to optimism.

¶ 07 Many experts analyzed and theorized, but could not practically rebuild the economy. The present Government has shown in practice how to manage and develop an economy and overturn deep pessimism. These gains were not achieved in normal times but in the aftermath of the worst crisis since Independence.

¶ 08 The 2022 crisis created the great people’s struggle. Though its immediate outcome was not as expected by progressives, the people then brought our Government to office to realize the aspirations of that struggle. We have changed the destructive political culture and introduced a new political culture.

¶ 09 Some in the Opposition predicted a Nepal-style uprising here. We say it will not happen because we have addressed the core driver—economic distress—within our first year.

¶ 10 Regionally, uprisings in Nepal, Bangladesh, Indonesia did not yield clear changes; but within one year under our Government, we have delivered a renaissance—economically, socially, and environmentally. 2025 is a turning point. We stand ready to develop the economy, solve people’s problems, and build a prosperous country where people can live beautiful lives. Thank you.