Signifying the significant amount of money a government spends on capital expenditure at this time, President Anura Kumara Dissanayake stated that the upcoming proposal expects the government to invest 1.35 trillion rupees in capital expenditure.
This statement was made while addressing the 2025 Economic Summit held at the Shangri-La Hotel in Colombo today (28).
The summit was organized by the Ceylon Chamber of Commerce under the theme “Economic Transformation.” It aims to prepare Sri Lanka for the transformation of Southeast Asia based on political stability, debt restructuring, and an increase in the sovereign credit rating. This is expected to create overall economic progress in 2025.
President Anura Kumara Dissanayake stated that the government expects an economic growth rate of 4% this year, emphasizing the need to provide the necessary facilities for direct foreign investment to achieve this target.
The President also remarked:
“We are a political movement that has not previously held power. If there were any doubts about us in the past among business groups, investors, and some segments of the international community, we have now dispelled those doubts and built confidence in the government and its future course. This is a remarkable achievement that we have accomplished in the last two months.”
He highlighted that although achieving a 4% economic growth rate amidst the current economic downturn is challenging, it is a challenge that can be successfully met. The government is prioritizing the manufacturing sector and has set an ambitious target of 1.35 trillion rupees for capital expenditure.
The President acknowledged inefficiencies in the previous government, which failed to utilize allocated funds effectively. He pledged to implement mechanisms to ensure the utilization of funds, pointing out that approximately 75%-80% of the allocated amount remains unused.
He further discussed the challenges investors face in obtaining necessary permissions, often requiring approval from 82 institutions and taking over two and a half years. He announced plans to streamline this process significantly, aiming to reduce the time for environmental sector approvals to 82 days and other permits to 102 days. The Board of Investment will also shorten its decision-making process for investment projects to just two weeks.
President Dissanayake also stressed the potential for rapid growth in tourism, targeting 3 million tourists this year. He highlighted opportunities in the IT and maritime sectors, mentioning the commencement of the West Jetty project in March and the East Jetty project by July. He noted that the government has already made progress in the maritime sector.
Regarding energy and logistics, the President mentioned a temporary announcement for the Sampur power plant and plans to kickstart the logistics center project that had been delayed. Major project discussions are also underway with India and China to attract significant foreign investments.
He acknowledged the need for administrative reform, pointing out inefficiencies and corruption in state institutions. He emphasized the importance of digitalization in modernizing the state machinery and announced that the Indian government is providing a grant of 10 billion rupees for digital identity projects.
The President called for a shift in attitudes within state institutions and society to foster economic growth. He criticized the politicization of subsidy systems and outlined plans to target subsidies toward those who genuinely need them.
He also highlighted the importance of creating new economic opportunities in rural areas to eliminate poverty. The government plans to introduce community empowerment programs, moving away from traditional individual assistance programs.
Addressing the private sector, he urged a dialogue to make it an attractive place to work, as the public service currently remains more appealing. He pointed out inefficiencies in the estate sector, where companies have failed to provide a daily wage of 1,700 rupees to workers even after 32 years of privatization.
The President concluded by emphasizing the importance of collective transformation, urging people to change their attitudes to achieve national progress.
The event was attended by Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Governor of the Central Bank Dr. Nandalal Weerasinghe, Senior Advisor to the President on Economic Affairs Duminda Hulangamuwa, and officials of the Chamber of Commerce.
~PMD~
