The Hon. Anura Kumara Dissanayake

¶ 01 We have already secured the necessary permissions. Therefore, considering every sector, we have swiftly and decisively taken all measures required to safeguard our energy security. We believe that we must ensure energy stability for a certain period. I do not mean indefinitely—we do not know how far this conflict will escalate—but we will secure stability to the extent we can guarantee, and we have the capacity to do so.

¶ 02 Next, we focused primarily on this matter: in decision-making, the year 2025 is a crucial year for our economy. Historically, 2025 will record significant data. How many governments tried to keep the budget deficit below 5 percent? I remember, in 2015 it rose to 10.8 percent, against a target of 6.8 percent. It never fell below 5 percent. However, we can now tell you that in 2025 the budget deficit will decline to 2.4 percent—the lowest in Sri Lanka’s history. How many attempts were made to record a current account surplus? I recall during your time Minister Ravi Karunanayake once claimed a surplus, but even counting such occasions, there were only four times in our history—and each time it was under USD 500 million. In 2025, however, the current account is projected to register a surplus of USD 1.8 billion. That is a significant indicator.

¶ 03 We also reversed several ill-advised decisions—those that crippled agriculture, and tax reforms without scientific basis—which had pushed revenue down to 7.5 percent of GDP in 2022. That year we faced two crises: a dollar crisis and a rupee crisis. To bridge the rupee crisis, more money was printed, pushing inflation above 70 percent. Remember, just four years ago. Due to wrong policies, the black-market dollar hit LKR 4,000. What have we done? We have rebuilt revenue strongly. In 2025, tax revenue will exceed 15.8 percent of GDP; total revenue will reach 17.2 percent—the highest since the mid-1990s when, in 1996, it was 21 percent. Inflation is being kept low across sectors. Interest rates, often debated here, have remained in single digits throughout our 17 months—Treasury Bills and Bonds near 8 percent—for 17 consecutive months, historically unprecedented. Recall, in 2022 bond rates hit 33–36 percent. The data clearly shows the progress of our economy in 2025.

¶ 04 On debt restructuring, we were stuck with USD 175 million of SriLankan Airlines bonds. The Cabinet has now approved the restructuring agreement; we will sign it today, Friday. Our inability to complete it had weighed on our international ratings. With this, we move to a better place. If we can maintain this for 4–5 years, we can achieve a stable, strong economy resilient to external and internal shocks.

¶ 05 Externally, we faced Cyclone “Ditwah” and managed that situation. Now we face another external shock. We must especially think of supply chains. Under Minister Bimal Rathnayake’s leadership, with the Secretary to the Ministry of Trade, Commerce, Food Security and Cooperatives, we have appointed an operations committee to manage supply chains and essential needs, including stocking for the festive season. We will ensure there are no shortages and will strengthen distribution networks so that goods reach even remote areas like Niyagama.

¶ 06 We have also planned for moving tea leaves from estates to factories. The tea industry says prices have not fallen; initially around 20 percent compressions occurred at auctions, now easing somewhat, but we anticipate possible pressures and are planning. The apparel sector indicates this is a global issue affecting all competitors—global oil prices push up costs equally—so relative competitiveness is not severely eroded.

¶ 07 Fisheries and agriculture: We are harvesting now and preparing for the Yala season. Under Minister Bimal Rathnayake’s leadership, we have appointed a committee meeting even today to ensure inputs and groundwork. Policy must be set first; outcomes won’t immediately match initial expectations, so we adjust, identify critical points, and deliver swiftly—sometimes in two to three days. First, get QR access; then identify urgent points and release required materials. The Ministry of Industries and Enterprise Development has registered firms with their needed quantities, and we are working through these processes.

¶ 08 On the public service: Energy bears a heavy burden from the State sector. Under the Prime Minister’s leadership, a committee is managing State service rationalization. We have instructed Secretaries to plan to save at least 25 percent in energy-related expenditure. Some ministries have agreed to temporarily close non-essential offices to save fuel. We are taking necessary interventions across all sectors.

¶ 09 The Foreign Minister is in continuous talks with foreign governments on transactions and the evolving situation. Proposals are also coming from the Defence Council—yesterday I noted maritime-related recommendations—and we are coordinating with the Ministry Secretary accordingly.

¶ 10 We must safeguard our maritime boundary. The Defence Secretary and the Navy Commander are ensuring required fuel; the Navy has stocks sufficient for two months. Anyone attempting to exploit this crisis for drug trafficking will be caught—as seen with the recent record 270 kg cocaine seizure, the largest in Sri Lanka’s history. We are prioritizing to keep security networks intact.

¶ 11 Health: Even in a worst-case of severe fuel shortage for two months, we have secured protective stocks to keep health services running for six weeks. We have instructed protective stocks at ports and airports as well. Even if the crisis intensifies, we have considered protective inventories. Overall, we are acting to prevent economic breakdown through timely interventions.