President Anura Kumara Dissanayake is set to present the 2025 budget to Parliament tomorrow (17), which is expected to include significant salary hikes for public sector employees along with a broader effort to ease the financial burden on ordinary citizens. However, the budget will also introduce expanded tax measures, aimed at increasing government revenue in line with International Monetary Fund (IMF) commitments.
This will be the first budget under the National People’s Power (NPP) government, and it is anticipated to contain proposals focused on long-term economic development and ensuring greater public participation in the economy. The expansion of the tax net is a key feature, with the government working towards raising state revenue to 15.1% of GDP in 2025, as per agreements with the IMF.
Additionally, the budget is expected to address issues in the current subsidy system, ensuring that assistance reaches the most vulnerable communities while expediting the distribution process.
The budget debate will take place in three stages. The second reading debate will run from February 18 to 25, with a vote scheduled for February 25 at 6:00 PM. The committee stage debate will extend for 19 days from February 27 to March 21, followed by the final vote on the Appropriation Bill on March 21 at 6:00 PM.
Ahead of the budget’s finalization, a key discussion was held on February 13, led by President Dissanayake, to address crucial economic concerns and budgetary priorities. As Sri Lanka prepares for its first full-year budget under the NPP administration, both salary hikes and new tax policies are expected to spark widespread public and parliamentary debate.
