President Anura Kumara Dissanayake says government action involving the Criminal Investigation Department and Sri Lanka Customs has succeeded in curbing the illegal outflow of dollars through what he described as the country’s “black economy.”
Addressing a public rally, the President claimed approximately $1 billion had been illegally moved out of Sri Lanka, comparing the amount to the country’s annual earnings from tea exports.
“Approximately $1 billion was taken out illegally. That is close to the amount we earn by exporting all our tea,” Dissanayake said, alleging that those who benefited from the system were now alarmed by the government’s actions.
He said the CID and Customs had undertaken significant efforts to prevent dollars from being moved out through unofficial channels.
The President also claimed that state revenue had previously been diverted before reaching the Treasury, while portions of funds that did reach the Treasury were subsequently misused.
“We closed all those routes and ensured that every cent that should come to the Treasury comes to the Treasury,” he said.
Dissanayake said government revenue reached 16.7% of GDP in 2025, which he described as the highest level in around three decades. He attributed the improvement partly to efforts to prevent state revenue from leaking into the informal and corrupt economy.
The President further said Sri Lanka had recorded its lowest budget deficit since 1957, arguing that the government had achieved this by increasing revenue while exercising greater control over expenditure.
He criticised previous governments for undertaking major infrastructure projects without adequate assessments, citing ports and airports as examples of projects that could waste public funds when undertaken without proper studies.
Looking ahead, Dissanayake said the government plans to allocate Rs. 2 trillion for capital expenditure next year, which he described as an unprecedented level of development spending.
He also announced plans to provide each district with a Rs. 2 billion budgetary reserve, allowing funds to be used for district-level priorities with the involvement of District Coordinating Committees and District Secretaries.
The President highlighted increases in several welfare and education-related payments under his administration, including the Mahapola scholarship allowance, fertilizer subsidy and allowances for elderly people and persons with disabilities. (Newswire)