The Hon. (Dr.) Upali Pannilage - Minister of Rural Development, Social Security and Community Empowerment

¶ 01 Hon. Deputy Speaker, the Central Bank of Sri Lanka’s Annual Economic Review for 2025 is a significant milestone for the National People’s Power government. After decades, the people made an important decision in the September 2024 Presidential Election and the November 2024 General Election to entrust governance to the NPP. The year 2025 is our first full year, and this report provides crucial direction.

¶ 02 Beyond statistics, tables, and charts, the report reflects underlying socio-economic and political processes. It projects 5 percent real GDP growth in 2025. After years of contraction and negative growth following the bankruptcy, achieving 5 percent growth signals stability and a clear economic trajectory.

¶ 03 Inflation, which once approached 100 percent in food and 35–40 percent overall, has been brought under control to around 2–3 percent, easing the burden on people’s lives.

¶ 04 Regarding fertilizer concessions, about 24.6 percent of our population depends on agriculture. It is disheartening to hear arguments against supporting farmers. Typically, around 800,000 hectares are cultivated in Maha and 750,000 hectares in Yala. Fertilizer bag prices rose to Rs. 40,000–45,000. When we came to power, we provided a Rs. 15,000 per hectare fertilizer subsidy, later increased to Rs. 25,000, and, after the Middle East crisis pushed global prices up, further to Rs. 30,000 per hectare. The National Fertilizer Secretariat informs us that all fertilizer required for this Yala has been imported. We have essentially doubled the subsidy.

¶ 05 Rice prices have been kept relatively stable—Naadu around Rs. 200 per kg—even through crisis. Although we were not self-sufficient in rice when we took office, farmers are now producing the quantities the country needs. There are niche varieties, and we are considering appropriate substitutes where needed. In 2025, we especially focused on the one-in-four of our people who are farmers.

¶ 06 We achieved these economic gains through multiple channels. We recorded a current account surplus of about USD 1.5 billion for the year. We earned over USD 2.9 billion in 2024; tourism generated more than USD 3.2 billion with record arrivals; and through our ministries we sent significant numbers of trained workers abroad, pushing remittances to about USD 8.1 billion.

¶ 07 Foreign Direct Investment approached USD 1 billion in 2025. Despite challenges, we also serviced debt: in 2025 alone, across public and private liabilities, we repaid around USD 5.1 billion—the highest in recent years.

¶ 08 On vehicle imports and pricing: previously imports were closed. We reopened, and in a few months spent roughly USD 3 billion, with about USD 2.1 billion in 2025 for vehicles. Even after that, and after debt service of USD 5.1 billion, we still posted a current account surplus.

¶ 09 Domestically, our three main revenue agencies—Inland Revenue, Excise, and Customs—exceeded their targets due to better management and systems. Against the Budget estimate of Rs. 4,990 billion in 2025, we surpassed it by around Rs. 500 billion.

¶ 10 We channeled these gains to social welfare. The “Ditva” cyclone in November last year caused an estimated USD 4.1 billion in damage—about twice the 2004 tsunami’s final estimated loss. In 2025 alone, we allocated Rs. 500 billion (Rs. 50,000 crore) for relief. The global energy shock also impacted us; we managed public debt and raised Rs. 100 billion to cushion the impact.

¶ 11 In sum, 2025 brought a series of economic successes that we are rapidly translating into social benefits for ordinary people. Thank you.