The Hon. Kathiravelu Shanmugam Kugathasan
Kathiravelu Shanmugam Kugathasan reviewed the Central Bank of Sri Lanka’s Annual Economic Review 2025, highlighting improved growth, higher per capita income, lower inflation, stronger revenue collection, a primary surplus, declining external debt, increased FDI, remittances, tourism earnings, reserves, and lower unemployment. He noted that the trade deficit had widened and that poverty remained high at 24.5 percent, with Sri Lanka ranked 89th on the Human Development Index. He argued that the economy had recovered from contraction in 2023 and sustained growth through 2024 and 2025, with per capita income exceeding USD 5,000 as a key indicator.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Speaker, I wish to present my views on the Central Bank of Sri Lanka’s Annual Economic Review 2025.
¶ 02 Comparing the past three years’ economic indicators, Sri Lanka’s growth moved from -2.0 percent in 2023 to 5.0 percent in 2024 and maintained the same in 2025.
¶ 03 Per capita income rose from USD 3,818 in 2023 to USD 4,546 in 2024 and, for the first time, surpassed USD 5,000 in 2025—an encouraging sign. Average inflation fell from 17.4 percent in 2023 to 1.2 percent in 2024 and moved to -0.5 percent (deflation) in 2025, benefiting consumers.
¶ 04 Government revenue increased from 11.2 percent of GDP in 2023 to 13.6 percent in 2024 and 16.7 percent in 2025, while expenditure declined from 19.5 percent of GDP in 2023 to 19 percent in 2025. Owing to Inland Revenue reforms, the primary surplus rose from 0.6 percent of GDP in 2023 to 2.2 percent in 2024 and reached a historic 5.4 percent in 2025.
¶ 05 The trade deficit widened from USD 4.9 billion (2023) to USD 6.1 billion (2024) and USD 7.9 billion (2025). Public external debt declined from 104 percent of GDP (2023) to 95.5 percent (2024) and 91.6 percent (2025).
¶ 06 FDI increased from about USD 737 million in 2023 to over USD 1 billion in 2025, indicating a return of investor confidence. Market interest rates fell in 2025 versus 2024, improving liquidity and investment prospects.
¶ 07 Worker remittances rose from USD 5.8 billion (2023) to USD 6.5 billion (2024) and USD 8.1 billion (2025). Tourism earnings increased from USD 2.07 billion (2023) to USD 3.1 billion (2024) and USD 3.2 billion (2025). As a result, foreign exchange reserves rose from USD 4.3 billion (2023) to USD 6.1 billion (2024) and USD 6.8 billion (2025).
¶ 08 Unemployment declined from 4.7 percent (2023) to 4.4 percent (2024) and 3.9 percent (2025). However, headcount poverty remains high at 24.5 percent, and Sri Lanka continues to rank 89th on the Human Development Index.
¶ 09 These data show clearly that the economy, which contracted in 2023, recorded continuous growth in 2024 and 2025. In particular, per capita income exceeding USD 5,000 is a strong sign of recovery.
Provenance
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- Hansard, Wednesday, 20 May 2026 ·No. 23618 ·English daily/uncorrected Hansard
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Cite as: The Hon. Kathiravelu Shanmugam Kugathasan. 10th Parliament, Parliament of Sri Lanka. Hansard, 20 May 2026. No. 23618. Politick, https://staging.politick.io/lk/speeches/19267