Finance State Minister Shehan Semasinghe asserted that opposition to the Economic Transformation Bill stems from motives to drag the nation back into economic turmoil, rather than genuine concern for its efficacy. Addressing reporters at the Presidential Media Centre on Thursday (30) under the theme ‘Collective Path to a Stable Country’, Semasinghe underscored the Government's commitment to steering Sri Lanka towards a prosperous future, contrasting it with what he described as politically-driven resistance from opposing factions.

“The Economic Transformation Bill is a cornerstone of our strategy to bolster productivity, foster inclusivity, and fortify infrastructure for all Sri Lankans,” stated the Finance State Minister. “Its primary objectives include job creation, sustainable economic expansion, and the promotion of innovative exports to invigorate market competitiveness.”

Semasinghe lamented the misinterpretation of the Bill by some quarters, attributing opposition to a lack of comprehension rather than genuine critique. “The absence of a tailored legal framework has contributed to our economic setbacks, a lesson we cannot afford to ignore,” he remarked.

Outlining the Bill’s ambitious targets, Semasinghe detailed plans to reduce the country’s debt burden from 128% of GDP in 2022 to 95% by 2032, alongside a reduction in the gross money supply and foreign debt servicing ratio. The ultimate aim, he stressed, is to establish a sustainable economic foundation for future generations.

Moreover, Semasinghe outlined growth projections, including an anticipated recovery to a growth rate exceeding 5% post-2027 and maintaining unemployment below 5% by 2025. He also emphasized the Government’s commitment to enhancing female labor force participation rates and achieving a positive current account balance through strategic economic reforms.

“The Economic Transformation Act charts a path towards a resilient and prosperous Sri Lanka,” Semasinghe concluded. “By aligning our goals with tangible legislative frameworks, we pave the way for sustained economic growth and equitable opportunities for all.”

Increasing Foreign Investment and Ensuring Economic Stability: Sri Lanka's Vision for Sustainable Growth

Highlighting Sri Lanka's ambitious economic agenda, Finance State Minister Shehan Semasinghe outlined targets aimed at bolstering foreign direct investment and achieving fiscal equilibrium. Speaking on the significance of the Economic Transformation Act, Semasinghe articulated the Government's commitment to transformative reforms geared towards sustainable development.

Foreign direct investment, a critical driver of economic growth, is set to rise to at least 5% by 2030," Semasinghe announced. "We aspire for direct investment to constitute 40% of the country's total exports of goods and services by the same year.

Underpinning the International Monetary Fund's economic stabilization efforts, Semasinghe elucidated plans to elevate the primary balance from -3.7% in 2022 to +2.3% by 2025, aiming to sustain it at 2% beyond 2032. This strategic shift is pivotal in ensuring fiscal resilience and long-term stability.

Semasinghe also emphasized the imperative of augmenting Government revenue, targeting an increase from 8.3% of GDP in 2022 to surpassing 15% by 2025. Such revenue augmentation is essential for sustaining vital public services and fostering socio-economic development.

Acknowledging the impact of reforms on vulnerable segments of society, Semasinghe affirmed the Government's commitment to mitigating multidimensional poverty. "Our goal is to reduce multidimensional poverty to below 15% by 2027 and further to 10% by 2035," he declared, underscoring the importance of inclusive growth and equitable distribution of resources.

In concluding remarks, Semasinghe reiterated the Government's unwavering dedication to implementing the comprehensive reforms outlined in the Economic Transformation Act. "It is our solemn duty to enact the necessary measures to drive progress and prosperity for all citizens," he affirmed, reaffirming the Government's steadfast resolve in fulfilling its mandate without hesitation.

In conclusion, Finance State Minister Shehan Semasinghe's elucidation of Sri Lanka's economic trajectory underscores a vision for sustainable growth and prosperity. By outlining ambitious targets for foreign investment, fiscal balance, revenue generation, and poverty reduction, the Government demonstrates its commitment to fostering an inclusive and resilient economy. As Sri Lanka navigates through transformative reforms outlined in the Economic Transformation Act, Semasinghe's assurance of unwavering dedication reflects a steadfast resolve to fulfill the nation's mandate and ensure a prosperous future for all its citizens.