President Anura Kumara Dissanayake has reaffirmed his government’s commitment to digital transformation and economic restructuring, stating that Sri Lanka must embrace modern solutions to drive development. Speaking at the 2025 Economic Summit held at the Shangri-La Hotel in Colombo, he dismissed concerns surrounding digital identification, emphasizing that it will create a modern identity system for Sri Lanka rather than threaten individual freedoms.
At the summit, organized by the Ceylon Chamber of Commerce under the theme Economic Transformation, the President outlined a roadmap for national economic growth, political stability, debt restructuring, and sovereign credit rating upgrades. The event aimed to position Sri Lanka for a stronger economic future in 2025.
President Dissanayake announced that the government plans to allocate Rs. 1.35 trillion for capital expenditure in the upcoming budget, marking the largest investment in infrastructure and development projects in recent history. He highlighted that previous administrations failed to fully utilize allocated funds, with only 75-80% of the budget being spent. To rectify this, the government is setting up new mechanisms to ensure the full and effective utilization of resources.
During his speech, he stressed that foreign direct investment (FDI) is critical for achieving an economic growth rate of over 4% this year. He acknowledged that bureaucratic inefficiencies have hindered investment inflows, pointing out that investors currently need to obtain permission from 82 different institutions, a process that takes more than two and a half years. He vowed to reduce this timeline significantly, cutting environmental permits from 269 days to 82 days, investment approvals from 184 weeks to 102 days, and Board of Investment (BOI) project evaluations from 80 days to just two weeks.
The President also underscored the tourism sector as a major growth opportunity, setting a target of attracting over 3 million tourists this year. He noted that infrastructure development at Colombo’s Western Jetty is scheduled to begin in March, followed by the Eastern Jetty in July, which will boost Sri Lanka’s maritime industry.
He confirmed that the Sampur Power Plant project is moving forward, alongside efforts to restart stalled BOI projects and accelerate approvals for key investment proposals. Additionally, Sri Lanka is engaged in major investment discussions with India and China, with the expectation of attracting substantial foreign capital.
Referring to past administrative inefficiencies, President Dissanayake criticized the state machinery for failing to implement political decisions efficiently, stating that mistrust between government authorities and the public sector had hindered progress. However, he reassured that his administration has no hidden agendas and is committed to a transparent governance model that will gain the trust of state institutions.
The President directly addressed concerns surrounding digital identity, describing it as a necessary transformation rather than a threat. He argued that scientifically breaking the myths surrounding digital IDs will help Sri Lanka integrate into the modern digital economy. He revealed that India has granted Rs. 10 billion to support this initiative, which will streamline services, enhance efficiency, and reduce corruption in state institutions.
Highlighting the urgent need for administrative reform, the President criticized the existing bureaucratic system as inefficient, outdated, and corrupt. He pointed out that many state institutions no longer serve a meaningful purpose and must either be restructured or merged.
He emphasized that Sri Lanka’s economic success is overly dependent on a handful of institutions, noting that just a few companies generate 90% of the country’s export revenue and that the Western Province contributes 37% to the national economy, while Uva Province contributes only 5%. This economic imbalance, he said, must be addressed by creating new economic opportunities for rural communities.
The President highlighted rural poverty as a key challenge, acknowledging that existing welfare programs do not reach all those in need. He criticized past governments for politicizing subsidy programs, saying his administration is introducing a new, targeted financial assistance system that ensures aid is provided only to those who genuinely qualify.
To stimulate rural economies, he outlined a shift from individual-based aid to large-scale economic programs. Using the failed livestock distribution programs as an example, he stated that past government schemes, such as giving individual farmers buffaloes or chickens, did not lead to sustainable growth. Instead, the government will focus on developing new industries and income-generating projects in rural areas.
President Dissanayake acknowledged the challenges of competing in the global market, stating that despite claims of a “free market,” global trade is highly segmented. He announced that Sri Lanka is exploring a new trade agreement with India after analyzing the strengths and weaknesses of previous trade deals. This move, he said, is aimed at ensuring Sri Lanka captures a larger share of the global market.
The President highlighted that Sri Lanka has a bloated public sector with 1.3 million employees, where the lower-tier workforce is overstaffed, while the middle-tier lacks skilled professionals. He proposed holding competitive exams to recruit talent from the private sector, making public sector jobs more attractive.
He also criticized estate companies, noting that despite 32 years of private sector management, estate workers still earn less than Rs. 1,700 per day. This, he said, raises questions about whether these companies are truly effective.
Addressing recent controversies, he commented on illegally imported containers that were recently seized at Customs, revealing that some containers carried counterfeit labels from well-known companies. He called on both the public and private sectors to take responsibility for maintaining ethical standards.
Concluding his speech, President Dissanayake urged all Sri Lankans to unite to rebuild the country. He emphasized that public services require significant financial resources, and that without economic expansion, Sri Lanka will continue to struggle with high public spending.
He called for a shift in public attitudes, encouraging people to support economic reforms, embrace digital transformation, and participate in national development efforts.
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 Economic Advisor Duminda Hulangamuwa, and representatives from the Chamber of Commerce.
The President’s speech marked a strong push for economic modernization, digital transformation, and administrative efficiency, setting the stage for bold policy changes in the coming months.
