Budget 2025 charts clear path for stability and growth: Treasury Secretary

• Stresses need to stay the course, strengthen economic buffers, and avoid serious policy mistakes
• Acknowledges need for strong leadership, effective implementation and broad-based support for reform agenda

The Budget 2025 is a critical milestone in Sri Lanka’s economic recovery journey, as it has managed to strike a careful balance between maintaining fiscal discipline and addressing the immediate needs of the public, according to Secretary to the Treasury, K.M. Mahinda Siriwardana.

He noted that the budget includes measures to support the poor and vulnerable through enhanced social safety nets while also investing in infrastructure, education, and healthcare to drive long-term growth.

“The 2025 budget provides a clear vision for the way forward. It is now up to all stakeholders to work together to turn this vision into reality,” Siriwardana stated.

He made these remarks delivering the keynote speech at the Softlogic Investor Forum held in Colombo this week.

Siriwardana highlighted the rarity of Sri Lanka’s current economic trajectory, where a change in the political cycle has not led to a drastic shift in macroeconomic policy discipline. He contrasted this with the policy changes that followed the 2019 political transition, which he described as a cautionary tale.

“Today, we are witnessing a mature and pragmatic continuity in macroeconomic policy through an election cycle. This is a rare and positive development for Sri Lanka,” he said.

“While some may criticise the current approach, the results speak for themselves. We have restored macroeconomic stability, rebuilt investor confidence, and are on track to achieving debt sustainability,” Siriwardana added.

He also highlighted the significant progress made in the country’s economic reform agenda over the past three years, emphasising that the nation is now on the right track to achieving sustainable growth and fiscal stability.

He outlined the key achievements of the reform programme and highlighted the importance of maintaining discipline to ensure long-term economic independence.

Siriwardana noted that the reforms, though painful, have already begun to yield positive results, with fiscal space gradually improving.

“When the reform programme began, our leverage was minimal. Today, we are in a much stronger position to engage with international partners and investors,” he said.

He added that the government’s commitment to fiscal discipline has allowed for targeted relief measures for vulnerable populations without undermining the broader reform trajectory.

Meanwhile, he expressed confidence that Sri Lanka’s current engagement with the International Monetary Fund (IMF) could be its last, provided the country remains committed to the reform agenda.

“This should be the 17th and final IMF programme for Sri Lanka. There shouldn’t be an 18th. But to achieve this, we must stay the course, strengthen our economic buffers, and avoid serious policy mistakes,” he said.

Siriwardana emphasised that the most difficult reforms have already been frontloaded and implemented. What remains, he said, is the consolidation of these reforms and ensuring their sustainability.

“By staying disciplined and focused, we can achieve real economic independence and even enhance it in the years to come,” he added.

Siriwardana went on to assert the need for strong leadership, effective implementation, and broad-based support for the reform agenda.

“The path to economic recovery is challenging, but the rewards will materialise over time. If we remain patient and disciplined, Sri Lanka can emerge stronger, more resilient, and more prosperous,” he said.

Source: Daily Mirror