Former State Minister of Finance Shehan Semasinghe has announced that he will not contest the upcoming Parliamentary Election. 

Issuing a statement, the Sri Lanka Podujana Peramuna (SLPP) member clarified, however, this does not mean that he has quit politics.

The former Parliamentarian said together with the former government he had provided his utmost to help rebuild the nation, but it is evident that the public required a change. 

Stating that he respects the people’s desire for change in government and Parliament, Semasinghe said he has decided not to contest the General Election.

He said he would, instead, work on serving the people of Anuradhapura who had previously elected him to Parliament.

Shehan Semasinghe added that, however, he would provide his unconditional assistance whenever the nation requires it in the future. (Newswire)

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The government expects to permit the importation of vehicles for private consumption in the first quarter of 2025, State Minister of Finance Shehan Semasinghe said. 

According to media reports, State Minister Semasinghe announced that therefore, permission for the importation of vehicles will be granted by August this year. 

He further revealed that under the first phase, permission will be given for the import of vehicles required for business and transportation purposes. 

“Regarding the easing of restrictions on vehicle imports, the government will inform its position by August and how the restrictions will be removed,” he said. 

State Minister Shehan Semasinghe stressed that it is not possible to lead the country back to the era of import restrictions by taking actions solely targeting the election. (Newswire)

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Opposition MP Harsha de Silva says attempts are being made to imprison him, over claims that he misled Parliament. 

MP Harsha de Silva said that he refutes all allegations levelled against him concerning the report of the Parliament Committee on Public Finance (CoPF) on the online visa issuance for tourists which was presented to Parliament recently.

Addressing Parliament today, the CoPF Chairman said these were major accusations, which he categorically denies, and that these were attempts to imprison him by claiming that he had misled Parliament. 

“Please provide me with what I presented. I will analyze them. This isn’t the first occasion on which I have been removed. I am not afraid to be imprisoned,” he added.

MP Harsha de Silva made the remarks in response to a statement made by State Minister of Finance Shehan Semasinghe, who claimed that the CoPF Chairman had presented the report, despite several of the committee members having rejected it. 

State Minister Shehan Semasinghe further said that the actions of the CoPF Chairman had violated the Parliamentary privileges of fellow CoPF members.

He also called on the Speaker to refer the matter to the Parliamentary Committee on Ethics and Privileges, as the CoPF report was misleading and contained inaccurate information. 

Earlier in July, presenting the report to Parliament, MP Harsha de Silva revealed that investigations into the visa issue linked to VFS Global have identified that the prime contractor was not VFS Global as claimed but GBS Technology Services and IVS Global FZCO, but all the companies have signed an agreement to carry out visa issuance. 

MP de Silva further said the CoPF report has found that VFS Global had been picked without calling for official bids and had resulted in the Department of Immigration and Emigration losing out on receiving competitive rates for visa issuance. 

“If competitive bids were called for then the government could have obtained the services for a fee less than US$ 25,” he said. 

Stating that local firm Mobitel had also in the past offered to provide some service for US$1, MP de Silva said however, no specifications had been issued on the criteria for the visa issuance service amidst which VFS Global had been selected. 

At the time, he said the CoPF was of the view that if specification documents had been available then, not only Mobitel but other overseas firms would also have had an opportunity to engage in competitive bidding for the visa issuance service in Sri Lanka. 

The Committee on Public Finance (CoPF) had launched a probe after the visa issuance system by VFS Global and its charges were brought to the limelight by a local passenger who had raised concerns over the process. (Newswire)

Attempts are being made to imprison me, stating that I have committed an act that warrants imprisonment. This is a major accusation. I categorically deny all allegations leveled against me, both collectively and separately. If attempts are being made to imprison me by saying that… pic.twitter.com/7sfRg31ZJm

— Manthri.LK_Watch (@ManthriLK_Watch) July 23, 2024

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Sri Lanka has successfully concluded discussions with the ad-hoc Bondholder Committee of International Sovereign Bonds (ISBs), reaching an agreement on restructuring terms, State Minister of Finance Shehan Semasinghe announced on Thursday. 

Taking to ‘X’, State Minister Semasinghe revealed that International Sovereign Bonds account for USD 12.5 billion out of the total external debt of USD 37 billion. 

The State Minister pointed out that this agreement is a crucial step in our efforts to restore debt sustainability in the country. 

He further said that these restructuring terms now require approval from the official creditor committee and the International Monetary Fund (IMF) to confirm the Comparability of Treatment and assess compliance with Debt Sustainability targets. 

“This marks another key milestone in our journey towards economic revival and strengthening. This milestone could be considered a reflection of the ambitious economic and governance reforms carried out by the government in line with the best practices adopted globally. These reforms have been pivotal in creating a more resilient and sustainable economic framework for the future,” he added. 

Sri Lanka defaulted for the first time on its foreign debt in May 2022 after its economy was driven to the brink by a slump in foreign exchange reserves.

Restructuring international bonds was one of the key conditions set by the IMF under a $2.9 billion bailout programme that helped Sri Lanka tame inflation, stabilise its currency, and improve public finances.

The latest agreement comes after Sri Lanka held a second round of formal talks with bondholders this week.

According to Reuters, the framework proposes a 28% haircut on face value and an 11% reduction on past interest with payments on the interest component to start in September. 

The outline proposes to swap four existing dollar-denominated bonds for a bundle of three fixed-income instruments. 

One is a standard or so-called “plain vanilla” bond that has a coupon of 4% and matures in 2028. The second is a series of macro-linked bonds, where payouts and principal will be adjusted according to the country’s economic performance – downwards in case the economy fails to hit the IMF baseline projections, and upwards if the economy outperforms.

A third instrument would be a so-called governance-linked bond. While the government’s regulatory statement did not detail the parameters to which the payout was linked, a source familiar with the situation said the country would have to pay investors less if it managed to achieve reforms demanded by the IMF and hit tax revenue targets.

The agreements come in the backdrop of Sri Lanka signing in late June an agreement with creditor nations including Japan, India and China to restructure about $10 billion in bilateral debt.

Sri Lanka now needs to present the proposal to all its bondholders who need to agree to the deal for the restructuring to be finalised.

The country, whose total external debt is $37 billion, also has to finalise arrangements with the China Development Bank to restructure debt of $2.2 billion, according to the latest finance ministry data. (Newswire)

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State Minister of Finance Shehan Semasinghe has disclosed the government’s domestic and external debt figures in Parliament today.

The Minister revealed the figures during the second reading of the Public Debt Management Bill.

The domestic debt figure stood at Rs. 17,051 billion as of December 31, 2023, and increased to Rs. 17,252 billion by March 31, 2024, Semasinghe said.

Additionally, he highlighted that the foreignl debt portfolio stands at USD 37 billion, which includes outstanding external debt installments amounting to USD 5.5 billion from April 2022.

“This is because although we have serviced multilateral debt, we have not yet serviced bilateral debts,” Semasinghe said responding to a query raised by the Chief Opposition Whip. (Newswire)

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The International Monetary Fund (IMF) will take up for discussion Article IV consultation and second review under the Extended Fund Facility (EFF) for Sri Lanka, next week.

According to State Minister of Finance Shehan Semasinghe, the discussion on Sri Lanka is on the IMF Board meeting agenda for Wednesday, June 12, 2024.

“The session will evaluate Sri Lanka’s economic policies and reform progress. We look forward for continued support of all countries for a successful review to unlock the third tranche, which will further enhance economic stability, growth, and reform efforts,” the State Minister said in a post on ‘X’.

In December 2023, the IMF’s Executive Board approved the first review of Sri Lanka’s program with the IMF, enabling a disbursement of US$337 million. 

In March 2024, the IMF Staff and the Sri Lankan authorities reached a Staff-Level Agreement on economic policies to conclude the second review, as well as the 2024 Article IV Consultation. (Newswire)

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In response to criticism by opposition groups on the new Economic Transformation Bill, State Minister for Finance Shehan Semasinghe outlined several key areas the government hopes to address with the new legislation.

1. Debt burden against GDP

The bill proposes reducing the country’s debt burden from 128% of the Gross Domestic Product in 2022 to 95% by 2032. Similarly, the government’s gross money supply, which was 34.6% in 2022, should be reduced to 13% by 2032. The foreign debt servicing ratio, 9.6% in 2022, is targeted to drop to 4.5% by 2027. The government is committed to embedding these goals into the country’s legal framework to establish a sustainable economy.

2. Economic growth projections

The bill aims to achieve an economic growth rate exceeding 5% after 2027, recovering from a decline to -7.8% in 2022. 

3. Unemployment

Unemployment which was 4.7% in 2022, is expected to be maintained below 5% by 2025.

4. Labour force participation of women

In 2022, the labour force participation rate for women was 32.1%. The government’s goal is to increase this to at least 40% by 2030 and 50% by 2040.

5. Foreign Direct Investment (FDI)

Foreign Direct Investment, which was 1.6% in 2022, is expected to reach at least 5% by 2030. The government aims to make direct investment account for 40% of the country’s exports of goods and services by 2030. (Newswire)

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Two key bills aimed at bolstering the country’s economy will be introduced in Parliament tomorrow (May 22), Acting Finance Minister Shehan Semasinghe said. 

The bills, the “Economic Transformation Bill” and the “Public Financial Management Bill,” are designed to enhance the management of public finances, thereby safeguarding against future economic downturns.

Addressing a media briefing, the Acting Finance Minister said that the legislation stems from the vision of President Ranil Wickremesinghe himself, rather than being proposed by the International Monetary Fund (IMF). 

The new legislation will focus on preserving economic stability and maintaining optimal levels of public financial management to avert future economic crises. 

The “Public Finance Management Bill” meanwhile will focus on enhancing accountability in managing public finances, which aligns with the IMF programme’s requirements, Semasinghe explained. 

These drafts contain numerous technical intricacies aimed at bolstering confidence in the economy and maintaining the trajectory of the new economic direction implemented thus far. 

Further elaborating on the Economic Transformation Bill, it holds paramount importance for the country’s economic growth. Despite experiencing economic contraction in the second and third quarters of 2023, a notable growth rate of 4.5% was achieved in the fourth quarter.

The bill also addresses reforms essential for international trade, trade agreements, and climate change mitigation efforts, it was revealed. 

The establishment of a new Economic Commission in Sri Lanka, aimed at attracting investments to enhance competitiveness, fostering a conducive environment for investors, expanding international trade, establishing the National Productivity Commission, and developing export-related institutions, is also outlined in this bill.

Recently, Parliament endorsed the decisions made, particularly regarding economic transformation. In 2022, the public debt ratio stood at 128%, a figure slated to be reduced to less than 95% by 2032.

Similarly, the fiscal requirement, which was 34.6% of the gross domestic product in 2022, aims to be lowered to below 13% by 2032. Effective debt servicing is paramount, with efforts focused on establishing Sri Lanka as a debt-sustainable nation capable of meeting its obligations. The aim is to reduce the debt payment ratio from 9.4% in 2022 to below 4.5% by 2027.

A proposed bill will outline specific national goals and actions taken to address economic challenges, providing a roadmap for sustainable economic growth, debt management and economic governance. (Newswire)

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Sri Lanka’s next steps concerning the restricted discussions held with the Ad Hoc Group of Bondholders of its International Sovereign Bonds would entail further consultation with the International Monetary Fund (IMF) staff regarding assessments of the compatibility of the latest proposals with program parameters, State Minister of Finance Shehan Semasinghe announced. 

In a statement issued on Wednesday, State Minister Semasingeh said following these consultations, Sri Lanka hopes to continue discussions with the bondholders to reach common ground ahead of the IMF board’s consideration of the second review of Sri Lanka’s EFF program.

He further emphasized that Sri Lankan authorities continue to engage in all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations.

It is standard practice when a representative group of bondholders is formed to entertain confidential discussions with such a group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which makes them a privileged interlocutor for Sri Lanka.

It is well understood that given the price-sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

Commenting on the recent government statement issued on the restricted discussions held with the Ad Hoc Group of Bondholders, the State Minister said the conclusion of this first round of confidential discussions with members of the Group aims at informing the Sri Lankan people, market participants and other stakeholders about this debt restructuring exercise and the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks, both sides successfully bridged a number of technical issues enabling important progress to be made. 

State Minister Semasinghe added that Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner. 

His comments come, after the opposition, Samagi Jana Balawegaya (SJB) expressed disappointment over the government’s lack of transparency related to the restricted discussions held with the Ad Hoc Group of Bondholders of its International Sovereign Bonds (ISBs).

The SJB had expressed disappointment after the government, in a statement Tuesday, announced that it has held restricted discussions over the past three weeks (the “Restricted Period”) with nine members of the steering committee who agreed to take part in the restricted discussions (the “Steering Committee”) of the Ad Hoc Group of Bondholders (the “Group”, and together with Sri Lanka, the “Parties”) of its International Sovereign Bonds (ISBs).

The statement further said that despite constructive discussions, the Parties did not agree on restructuring terms, while the Steering Committee did not agree to an extension of the restricted discussions upon expiration of the current Restricted Period. (Newswire)

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The Government Action Plan was published by the Ministry of Finance on Thursday (Feb 29), according to State Minister of Finance Shehan Semasinghe. 

Taking to ‘X’, State Minister Semasinghe said at the request of Sri Lanka, a Governance Diagnostic Assessment (GDA) was concluded by the International Monetary Fund (IMF).

He further said that based on recommendations, the Ministry of Finance published the Government Action Plan yesterday.

State Minister Semasinghe added this further demonstrates the government’s commitment to building a sustainable economy and good governance in the country. 

The Government Action Plan : https://www.treasury.gov.lk/news/article/249 (NewsWire)

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The verification and certification process for applicants in the second phase of the “Aswasuma” program has been finalized, State Minister of Finance Shehan Semasinghe announced.

State Minister Semasinghe said that all necessary arrangements have been made to extend benefits to 2.4 million family units starting from June 2024.

The State Minister underscored the imminent closure of the second phase of applications, slated to conclude on March 15, 2024. 

Emphasizing the importance of timely submission, he reiterated that individuals failing to submit their applications by the given deadline will forfeit eligibility for benefits associated with the program.

State Minister Semasinghe made these remarks while participating in a press briefing at the Presidential Media Centre on Wednesday (Feb 28).

Additionally, State Minister Semasinghe noted that approximately 7,000 individuals who were found to have received benefits based on false information have been removed from the program due to appeals and objections.

Providing further details, he said; “initially, 3.4 million family units were certified for the program’s first phase. Out of this, 1.9 million families have been deemed eligible to receive benefits. Following the assessment of appeals and objections received, the Welfare Benefit Board is prepared to commence payments to the selected beneficiaries from July 2024.

“A total of 1,227,000 appeals and objections were registered, of which around 1,197,000 have been resolved. Furthermore, there is a group of deserving individuals who did not receive welfare benefits because they did not submit their application forms during the initial application period.

“Following extensive online awareness efforts, we have received approximately 200,000 to 250,000 applications thus far. The application forms handed in directly to the Divisional Secretariats are currently being processed through our online system. The call for applications in the second phase will conclude after March 15, 2024. It’s crucial to note that failure to submit application forms renders individuals ineligible for relief benefits,” he said.

State Minister Semasinghe further said that after completing the verification and certification of new applicants, all preparations have been finalized to extend insurance benefits to 2.4 million family units starting from June 2024. 

“Consequently, we anticipate allocating Rs. 205 billion for compensation payments in 2024. It’s worth mentioning that the allocation of these provisions has already been arranged.

“We are actively gathering information about such individuals. It is imperative to note that upon identifying them, we are ready to pursue the recovery of funds and initiate legal action against them in accordance with the law,” he added. (NewsWire)

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The government has decided to increase the monthly allowances granted for senior citizens and persons with disabilities and kidney ailments. 

State Minister of Finance Shehan Semasinghe said the Rs.5,000 allowance given to kidney patients and persons with disabilities will be increased to Rs.7,500.

He further said that the Rs.2,000 senior citizen allowance will be increased to Rs.3,000.

The State Minister noted that the increased allowances will be provided with effect from January this year.

State Minister Semasinghe added that ‘Aswesuma’ Welfare Benefit recipients within these categories will receive the increment from April 01, 2024. (NewsWire)

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State Minister of Finance Shehan Semasinghe says discussions will be held today to find solutions to the concerns raised by healthcare workers. 

The State Minister announced that discussions will be held today with Minister of Health Ramesh Pathirane in this regard.

Meanwhile, the Tri-Forces have been deployed at several state hospitals to assist with hospital operations. 

The Tri-Forces have been mobilized at the hospitals due to the islandwide token strike launched by healthcare sector employees.

The healthcare workers from 72 trade unions, excluding doctors, launched the 24-hour strike at 06.30 am today.

The strike has been launched demanding that the Rs. 35,000 Disturbance, Availability & Transport (DAT) allowance provided only for doctors be granted to them as well. 

It is reported that Health Minister Ramesh Pathirane has invited the trade unions engaged in the token strike for a discussion today. 

The healthcare workers’ Trade Unions have warned that they will launch an indefinite strike action if the authorities exert undue influence. (NewsWire)

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The ban imposed on vehicle imports was not taken up for discussion at the meeting of the Cabinet of Ministers, State Minister of Finance Shehan Semasinghe said. 

He revealed this while speaking to reporters after attending a meeting of the Cabinet of Ministers at the Presidential Secretariat last evening (Jan 08). 

“Under the current circumstances, we cannot assure that tax revenue will increase and that the import ban on vehicles can be lifted,” he said. 

State Minister Semasinghe further said receiving more foreign exchange, an increase in foreign exchange, and the long-term stabilization of the economy all have to be taken into consideration.

Pointing out that, therefore, quick decisions cannot be taken concerning this matter, he said Sri Lanka is currently benefiting from the various difficult decisions that have been taken thus far. 

The State Minister also reminded that the vehicle import ban is currently in effect only for vehicles of personal use and not other sectors.

His comments come amidst recent media reports claiming that the government was considering lifting the import ban on vehicles. However, the Finance Ministry has denied the reports. (NewsWire)

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The sustained single-digit inflation has significantly contributed to fostering business confidence within Sri Lanka, State Minister for Finance Shehan Semasinghe said.

The State Minister disclosed that the state revenue accounted for 11.2% of the Gross Domestic Product (GDP) in 2023, with projections indicating an anticipated increase to 15% by the year 2026.

State Minister Semasinghe provided insights into the economic landscape, stating that the country is poised to achieve a 1.7% economic growth in the third quarter of 2023. 

He highlighted the notable recovery, noting that the overall economic growth for the year 2023 is anticipated to be approximately -3%, a marked improvement from the -11% recorded in 2022. 

The balance of the primary account, which was negative at Rs. 895 billion in 2022, has now turned positive, standing at Rs. 333 billion as of November 2023.

He made the remarks while addressing a press conference held at the Presidential Media Centre on Monday (Jan 01). 

State Minister Semasinghe informed that with the receipt of the second tranche from the International Monetary Fund (IMF), foreign reserves are projected to surpass US dollars 4 billion. This includes contributions of US dollars 337 million from the IMF, US dollars 220 million from the Asian Development Bank (ADB) and US dollars 250 million from the World Bank (WB).

The successful maintenance of inflation within single digits has been pivotal in fostering business confidence, especially considering the significant reduction from 70% in 2022 to an anticipated 5% in 2024. This achievement stands as a cornerstone for building trust in the country’s business environment.

State income is anticipated to reach RS.3110 billion in 2023, surpassing the revised estimate of 2850 billion. This would represent a state income of 11.2% compared to GDP. Ambitiously, plans are to propel this figure to a 15% growth by 2026, he said.

According to the State Minister, Sri Lanka has witnessed a noteworthy upturn in the number of tax files, reflecting a positive trend in tax compliance. In 2019, the total number of registered taxpayers stood at 1,705,233. However, owing to various policy decisions, this figure decreased to 677,613 in 2020 and further to 507,085 in 2021. 

Demonstrating a commendable success in policy implementation, the number of tax files rebounded from 437,547 in 2022 to a significant milestone of one million.

State Minister Semasinghe pointed out that upon assuming office, the current government inherited unpaid bills exceeding Rs. 350 billion, a challenge that has now been effectively addressed with the settlement of all outstanding amounts. Additionally, the government achieved the noteworthy milestone of settling bills for all approved projects by December 15, 2023. Going forward, a principled commitment has been established to ensure that payments are not delayed by more than one month, starting in 2024.

In the coming year, the government is set to initiate the ‘Aswesuma’ application process, starting at the end of January or the beginning of February 2024. The December instalment for 1,410,064 beneficiaries has already been disbursed, and the government aims to extend these benefits to a total of 02 million people. Rigorous efforts are underway to identify eligible recipients and rectify any shortcomings observed in the benefits distribution process from the preceding year, demonstrating the government’s commitment to effective and targeted support, he added. (NewsWire)

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The Official Creditor Committee (OCC) has confirmed its agreement in principle on specific financing terms to restructure Sri Lanka’s debt in line with the debt restructuring parameters set in the International Monetary Fund’s (IMF) programme, State Minister of Finance Shehan Semasinghe said.

Taking to ‘X’, State Minister Semasinghe said Sri Lanka is very grateful to its bilateral creditors for their cooperation.

“This is a very significant milestone & a similar agreement in principle was provided earlier by the China Exim Bank. It confirms that all official creditors have agreed to restructure Sri Lanka’s debt, which is a major step in the resolution of Sri Lanka’s economic crisis,” he said.

The State Minister further revealed that the OCC’s agreement now paves the way for the IMF board to consider the first review of Sri Lanka’s EFF programme and unlock the next tranche of IMF funding expected in December, which in turn would enable the World Bank and Asian Development Bank (ADB) to provide further financing.

“This is another important indicator of the continued cooperation and support of the global community in Sri Lanka’s economic recovery. Sri Lanka remains committed to the implementation of a comprehensive reform programme that will restore macroeconomic stability and place the country on a path of sustainable and inclusive economic growth,” he said. 

State Minister Semasinghe added that Sri Lanka through its financial advisors, will continue to engage with its external private sector creditors in order to reach a similar agreement in principle. (NewsWire)

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The current budget, characterized by formal economic management, has been unveiled to proactively avert the recurrence of severe economic crises within Sri Lanka, State Minister of Finance Shehan Semasinghe said.

State Minister Semasinghe emphasized the dedicated focus within this year’s budget to extend relief to those significantly impacted by the economic downturn. 

“There is a deliberate commitment to fostering the establishment and support of small and medium-scale businesses as part of the comprehensive economic strategy,” he pointed out.

State Minister of Finance Shehan Semasinghe expressed these views during a discussion held on Monday (Nov 20) at the Ministry of Finance on the budget 2024.

The State Minister further said “The budget presented this year has laid the groundwork for growth across various sectors of the economy. To foster economic growth, it is imperative to restore the country to the pre-crisis economic levels. The groundwork for this resurgence was established in the previous budget. The current year’s budget is designed to further fortify economic stability and the progress in achieving this stability can be verified by scrutinizing data provided by the Central Bank.

“During the presentation of the 2023 budget, the nation found itself in a precarious situation, unable to produce a comprehensive budget document. At that critical juncture, the country grappled with profound economic downturn and political-social turbulence, marking a significant crossroads in its history.

“It is noteworthy to acknowledge that the attained economic stability is a direct outcome of the 2023 budget document. Additionally, the government anticipates a 1.8% economic growth for the upcoming year, with aspirations to surpass that target and achieve a growth rate of 2% or more. The formulation of this year’s budget took into account agreements established with the International Monetary Fund and the nation’s creditors. Of particular significance is the commitment to achieving debt sustainability, thereby emphasizing meticulous attention to debt restructuring and various other considerations in the preparation of the budget proposals.

“The government has prioritized addressing the challenges faced by population groups severely affected by the ongoing economic crisis. Special consideration has been given to public servants, who have not seen a salary increase in many years. Consequently, the government has taken the initiative to grant an additional allowance of Rs. 10,000,” he said.

Stating that focused attention has been extended to various vulnerable groups, including low-income earners, kidney patients, individuals receiving disability allowances and those receiving elderly allowances, he said this comprehensive approach is expected to benefit approximately 3 million families.

“As per the economic crisis, small and medium-sized businesses, which faced significant challenges, have been a focal point. The current budget allocates over Rs. 30 billion for their rehabilitation. A structured system has been devised to facilitate their access to credit facilities, offering subsidized interest rates in the single-digit range. Furthermore, the government has lifted restrictions on imports, excluding personal-use vehicles, in a move aimed at fostering greater economic flexibility and adaptability,” he added.

Also addressing the meeting, the Director General of the President’s Trade Union, Saman Ratnapriya, commended President Ranil Wickremesinghe for steering the country from a challenging state, marked by fuel and gas queues, to a more stable condition. 

Attributing this progress to the foundation laid by the previous budget, extending into the 2024 budget, Ratnapriya highlighted a proposal to increase government employee salaries by Rs. 10,000, acknowledging the existing pressures on the public.

“Acknowledging the current challenges faced by the populace, including the burden of elevated service charges, it is imperative to recognize the potential positive outcomes of advancing the President’s economic program. Despite the existing pressures, the belief is firm that adhering to this economic strategy will pave the way for the construction of a robust and sustainable economy,” he said. 

On the fiscal front, W. M. G. Kumaratunga, Director of the Economic Stabilization Unit at the President’s Office, provided insights into revenue collection. Noting the significant milestone, he projected estimated state revenue of Rs. 3,101 billion by December 31, surpassing the Rs.3 trillion mark for the first time in history.

“Comparatively, the revenue as of last 17 stood at Rs. 2,394 billion, with contributions from the Inland Revenue Department Rs. 1,415 billion, Sri Lanka Customs Rs.832 billion, and the Excise Department Rs.147 billion.

“As the year draws to a close, an estimated income of Rs.3,101 billion is anticipated from the combined efforts of the Inland Revenue Department, Sri Lanka Customs and the Excise Department. Additionally, a further Rs.369 billion is expected to be generated in the coming days. This additional revenue comprises Rs.154 billion from the Inland Revenue Department, Rs. 136 billion from Sri Lanka Customs and the remaining Rs. 33 billion from the Excise Department.

“Consequently, by December 31 of this year, a total state revenue of Rs.2,719 billion is anticipated. However, if efforts align with the estimated target for 2023, this figure would represent the highest state revenue ever recorded in the country’s history,” he said. 

Kumaratunga further said, that in addition to the ongoing efforts, the President’s Office has initiated special programs aimed at further augmenting state revenue. 

“Notably, the daily income of Sri Lanka Customs has currently reached an impressive Rs. 5 billion. The aspiration is to achieve a revenue target of Rs. 3 trillion, a milestone that could significantly boost the country’s economy, leading to the creation of a surplus in the primary account,” he added.

This discussion involved the participation of key stakeholders, including Dr. P. K. G. Harishchandra, Director of the Economic Research Department at the Central Bank, Chairman of the National Youth Service Council, Pasindu Gunaratne and representatives from trade unions, the Youth Corps and the Youth Service Council. (NewsWire)

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The first review of the Extended Fund Facility (EFF) programme of the International Monetary Fund (IMF) to Sri Lanka commenced today (Sep 14).

Taking to ‘X’, State Minister of Finance Shehan Semasinghe said the review is a significant milestone towards securing the second tranche for Sri Lanka.

He further stated that this will enhance confidence in Sri Lanka’s economic recovery and stability. 

“The successful completion of the first IMF review puts Sri Lanka in a strong position for economic recovery and sets a promising pathway for growth in 2024,” the State Minister said. 

The team from the International Monetary Fund will visit Sri Lanka between September 13 and 27, 2023.

In March 2023, the IMF Board approved a 48-month extended arrangement under its EFF programme of about US$3 billion to support Sri Lanka’s economic policies and reforms.

The Executive Board’s decision enabled an immediate disbursement equivalent to about US$333 million and opening up financial support from other development partners. (NewsWire)

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The government will continue with the existing payments of allowances for elderly citizens, disabled and those with kidney disease until a new criteria is introduced, State Minister of Finance Shehan Semasinghe stated.

Taking to Twitter, State Minister Shehan Semasinghe stated the directives have been issued by President Ranil Wickremesinghe. 

He further stated that, however, the execution of the ‘Asawesuma’ welfare benefits programme will have no change.

“We have received 760’000 appeals and 10’000 objections which will be evaluated at the earliest to target assistance to those who are most in need and ensure equitable distribution of resources,” State Minister Semasinghe added. (NewsWire)

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The government has not made a final decision yet regarding domestic credit optimization, State Minister of Finance Shehan Semasinghe clarified on Monday (19). 

During a press conference held at the Presidential Media Centre yesterday, State Minister Shehan Semasinghe addressed the issue of false information being disseminated by various parties in the country regarding the domestic debt optimization program.

He emphasized that the government has not made a final decision on this matter and further stressed the sensitivity surrounding the optimization of domestic debt and assured that the government is approaching this issue with utmost responsibility.

State Minister Shehan Semasinghe reaffirmed the government’s dedication to achieving improved optimization in order to uphold the stability of Sri Lanka’s banking and financial system. 

His remarks were made in line with the conference’s theme, ‘Collective path to a stable country’.

The full statement of the State Minister of Finance Shehan Semasinghe:

“No final decision has been made yet on the domestic debt optimization program. However, as a government, we always approach sensitive issues responsibly. President Ranil Wickremesinghe also addressed the matter of domestic debt optimization in Parliament. The Central Bank and the Ministry of Finance have provided clarifications on their stance. Our focus is on finding solutions for optimizing the banking and financial system of our country without negatively impacting stability, which is crucial. Consequently, various information and announcements are being released within the country.

Once the government reaches a final decision, we are prepared to inform both the parliament and the public. This is an extremely sensitive matter that significantly influences the market situation. Therefore, it is vital that we refrain from making statements that create doubts regarding this optimization, as it helps maintain stability in our financial market. We must all act responsibly in this regard. Following the President’s visit to France, we anticipate gaining a better understanding of these issues, particularly concerning the restructuring of foreign debt.

There have been criticisms on the political platforms concerning the current economic program implemented by the government. However, if the groups criticizing had a need or a plan, and possessed the capability, they would have an opportunity to confront that challenge. Only President Ranil Wickremesinghe has accepted that challenge. He has communicated to the people the progress made by the country since assuming office as President. While the leaders responsible for meeting the needs of the people fulfil their duties, those who have not taken on this responsibility continue to make various statements. Specifically, the JVP platform has expressed various opinions regarding the management of the economy. However, none of these statements present any practical ideas or programs for building the country.

The aim is to find a solution to the economic crisis without relying on the intervention of the International Monetary Fund (IMF). The government seeks to address the challenges and overcome the crisis through its own program, without external financial assistance. The specific solution that does not involve the IMF’s intervention is not mentioned.

While there are claims of providing a solution without IMF support, it is implied that such claims may lack substance. The challenging times we have faced are gradually coming to an end, and there is a belief that better progress will be achieved through the government’s program.

The IMF predicts a decrease in the negative growth rate from -7.8 to -3 by the end of the year. However, the government’s commitment and efforts are expected to lead to positive developments in 2024.

The government has achieved more results than anticipated thus far, and it is important to maintain the commitment made by the government.

The country’s progress in terms of transparency, combating corruption, and addressing fraud has gained international attention. The parliamentary week, which begins today, is expected to enhance confidence in Sri Lanka’s economy, administrative structure, and financial system. The Budget Office Bill and an Anti-Corruption Bill will be debated and passed in parliament, contributing to the country’s progress.

Passing these bills is crucial to boost the strength of the country’s financial market and attract investments. It may also lead to a change in rating agencies’ opinions about Sri Lanka. The first review with the IMF in September will showcase the progress made and the current program being implemented. Alternative measures have already been taken to address the slight decrease in income levels. Overall, the economic process is being successfully implemented in the country, though it may take some more time for the people to feel its effects.

As a government, we are committed to advancing this program. Any opposition or attempts to destabilize the political and social stability established can have consequences worse than those experienced during the weak economy of the previous year. Despite short-term challenges, we need everyone’s support to steer the country onto a new path, ensuring a clear future and preventing similar crises from occurring again.

Two groups exist in the country: one that capitalizes on the people’s suffering during the economic crisis to advance their political goals, and another that genuinely supports the government’s efforts to overcome the crisis. Some individuals attempt to spread misinformation and false news. As a government, we strive to provide accurate information based on correct data and statistics to enable people to make informed decisions. (NewsWire)

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