The Hon. Ananda Wijepala - Minister of Public Security and Parliamentary Affairs
The Minister said the 2025 Budget was framed without additional tax burdens and was intended as an initial recovery platform after economic bankruptcy, with allocations for education, healthcare, SMEs, rural development, vulnerable groups through Aswesuma, and development in the North and East. He said the Government would implement the Clean Sri Lanka programme, including action on narcotics, road discipline, institutional strengthening, legal reforms, and restoration of the rule of law. Responding to Opposition claims, he cited increased revenue collections by Inland Revenue, Customs, and Excise in late 2024 as evidence of improved administration rather than new taxes. He also stated that public sector salary increases are provided for in the Budget, with Rs. 110 billion allocated for the first-year enhancement in addition to the existing salary bill, and that related circulars would follow.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Chairperson, the 2025 Budget lays the foundation to fulfill the mandate we received at the last two elections. Its standout feature is that it has been framed democratically without placing additional tax burdens on the people. Traditionally, Budgets piled taxes on the public, sold state assets, privatized state enterprises, and relied on tax increases. In contrast, this Budget provides relief without new burdens.
¶ 02 We inherited a bankrupt economy with deep social and political decay—institutions weakened, rule of law eroded, and corruption rampant. Over the last few months we have been stabilizing the country and presenting this pragmatic Budget as the initial platform for recovery. It promotes expansion of a contracting economy, stimulates SMEs, and uplifts rural communities, while placing strong emphasis on human capital—hence the significant allocations to education to develop our people and their potential.
¶ 03 We will also strengthen healthcare by ensuring quality medicines across hospitals and upgrading provincial facilities. The Budget identifies vulnerable groups and provides targeted relief—e.g., Rs. 232 billion is allocated to the Aswesuma programme, depoliticized and being corrected to include eligible poor previously excluded.
¶ 04 Further, this Budget recognizes the North and East with development initiatives. The Northern people delivered us a historic mandate, expressing a desire to live together as Sri Lankans. We must acknowledge that and drive economic upliftment there.
¶ 05 On law and order, the Clean Sri Lanka programme will be implemented across sectors. It includes decisive action against narcotics, and building disciplined drivers to protect drivers, passengers, and pedestrians. We will restore the rule of law by strengthening institutions, reforming legal frameworks, and ensuring justice and fairness.
¶ 06 On revenue performance: contrary to Opposition claims, tax collection efficiency has already improved. Domestic Revenue Department revenue in the last quarter of 2024 increased to Rs. 504 billion from Rs. 398 billion in the last quarter of 2023—an increase of Rs. 104 billion. Customs revenue rose from Rs. 322 billion to Rs. 392 billion—up Rs. 70 billion. Excise revenue increased from Rs. 47 billion to Rs. 61 billion in the last quarter. These gains come from improved administration, not new taxes on the people.
¶ 07 Regarding salary increases and alleged confusion: policy decisions are clearly set out in the Budget and subsequent circulars will follow. Beyond take-home pay, increases to the basic salary raise increments, enhance eligibility for distress and property loans, and positively affect pensions. For 2025, an additional Rs. 110 billion is allocated specifically for the first-year salary enhancement, on top of the annual salary bill of Rs. 1,232 billion.
¶ 08 Overall, this is a progressive, people-centered Budget that anchors the “Prosperous Country, Beautiful Life” policy framework. Thank you.
Provenance
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- Hansard, Friday, 21 February 2025 ·No. 1740809173064396 ·English daily/uncorrected Hansard
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Cite as: The Hon. Ananda Wijepala - Minister of Public Security and Parliamentary Affairs. 10th Parliament, Parliament of Sri Lanka. Hansard, 21 February 2025. No. 1740809173064396. Politick, https://staging.politick.io/lk/speeches/3718