Professor Wasantha Athukorala, Director of the Postgraduate Institute of Humanities and Social Sciences at the University of Peradeniya, has expressed concerns that the government’s 2025 budget does not provide a foundation for fulfilling the promises made during the “compass” election campaign. Speaking to a newspaper, Professor Athukorala emphasized that the budget fails to align with the commitments outlined in the policy statements made before the election.
The professor noted that the appropriation bill reveals no apparent effort to lay the groundwork necessary for realizing those promises. While acknowledging that the government is operating under guidelines from the International Monetary Fund (IMF), he asserted that these constraints should not prevent the development of innovative strategies within the IMF framework.
“There is nothing wrong in stating that the government has had to prepare this budget under the IMF’s guidelines. However, it’s essential to recognize that the IMF’s directions provide room for progress, and there’s potential to move beyond these guidelines. Economists must approach this with strategic foresight, ensuring forward momentum rather than stagnation or regression,” Athukorala remarked.
The professor also highlighted the progress made in 2024, when the economy was placed on a relatively stable foundation. He suggested that the focus should now shift to leveraging that stability for development, calling for a budget that prioritizes long-term growth. However, he expressed skepticism about whether the government would adopt such a development-oriented approach.
“The groundwork for stability was laid last year. Now, the priority should be to foster a development-focused budget that builds on this stability. Whether the government will take such a direction remains uncertain,” he concluded.
