President Ranil Wickremesinghe said that decisive action would lead Sri Lanka to rapid economic growth this year. Despite facing criticism for these challenging decisions, he emphasized that they were undertaken in the best interest of the country. The President expressed his hope for unity in the New Year, urging collaboration among political parties to fulfill their collective responsibility in safeguarding the nation.
He was speaking at the opening ceremony of the new Air Force Headquarters at the Akuregoda, Battaramulla Military Headquarters on Monday (January 1).
President Ranil Wickremesinghe inaugurated the new Air Force Headquarters by unveiling the commemorative plaque. In a symbolic display, Air Force planes soared in the sky, paying tribute to the President and highlighting the significance of the event.
Momentous occasion
The President said: “Today marks a momentous occasion for the Sri Lanka Air Force (SLAF), commemorating 73 years of dedicated service. Throughout its history, the SLAF has played a pivotal role in rescuing citizens from the perils of terrorist wars, internal conflicts, and natural disasters. The inauguration of the modern SLAF Headquarters equipped with cutting-edge technology signifies a significant milestone, enabling the provision of technical expertise crucial for addressing future challenges.
The Air Force’s role in positioning Sri Lanka as a defence hub in the Indian Ocean Region (IOR) is of immense significance. To fulfill this role effectively, our Armed Forces must advance with new knowledge and technology. The application of modern security knowledge not only aids in addressing domestic challenges but also empowers us to identify and resolve international issues.
The establishment of the new SLAF Headquarters today is viewed as a move towards the modernisation of our defence infrastructure. As part of a comprehensive plan, the previous SLAF Headquarters office in Colombo is scheduled to be transferred to the Police Headquarters, optimizing the use of existing facilities. Additionally, there are strategic intentions to dismantle the structures formerly housing the Police Headquarters and the Ministry of Foreign Affairs in Colombo. This ambitious initiative envisions transforming the vacated area into a vibrant tourist zone, aligning with broader urban development objectives and promoting economic diversification.
The present challenge before us is the task of rebuilding the country’s economy, a responsibility that rests on the shoulders of all citizens. Upon assuming the Presidency, I inherited a nation grappling with a complete economic collapse. Consequently, the onus to revive the country’s economy was entrusted to me. Faced with a critical decision, I deliberated with the Cabinet of Ministers on whether to engage in political exercises or directly focus on the formidable task of economic reconstruction.
Contemplating the economic hardships confronting Lebanon, where an economic program encountered a two-year delay, and the extended recovery period of Greece lasting 13 years due to political instability, I sought an alternative path. Unlike the extreme measures adopted by certain nations, like slashing Public Service wages by 50 percent, I was resolute in avoiding such severe actions. Recognising a decline in our Gross Domestic Product (GDP), we opted for a more calculated and direct strategy. Through the implementation of clear-cut decisions, our aim was to attain a specific level of economic resilience by end 2023.
Nation’s economy
To fortify the nation’s economy, timely and essential decisions must be made. Our aim is to attain a 3 percent economic growth rate this year, with a commitment to advancing even more rapidly. Several friendly countries have expressed their support, raising inquiries about our ability to service the incurred debt in the future. To address this concern, it is imperative to diversify and create new sources of income, ensuring the sustainability of our economic recovery.
Last year, the government revenue reached Rs. 3.1 trillion, constituting 12 percent of our GDP. As part of our strategic vision, we aim to elevate the GDP to 15 percent by 2026. In 2024, we have set a target of achieving Rs. 4.2 trillion in Government revenue, necessitating a revision of the Value Added Tax (VAT).
Despite the inherent challenges, our commitment to a comprehensive program aimed at strengthening the country’s economy remains unwavering. Acknowledging the inherent difficulty of the task at hand, I have carefully considered the challenges associated with the decisions we are making. It is not without recognising the complexities and obstacles that I have pondered these choices extensively. The weight of the responsibility lies in understanding that without taking these decisive measures, we risk facing a recurrence of the last economic crisis.
Conversely, implementing this program represents an opportunity for the country to forge a path toward a better future. Despite the difficulties, the potential for positive transformation and sustained growth is significant. It is with a clear understanding of these considerations and a steadfast commitment to the well-being and prosperity of the nation that I have made these decisions for the country.
Assuming the role of the presidency was not driven by a desire for popularity but rather a commitment to nation-building and securing a prosperous future for citizens and their children. Consequently, challenging decisions must be made for the greater good. I have communicated these decisions to the Prime Minister and the Cabinet, who have concurred, and I express gratitude for their support.
Tax collection
Recognising the challenges associated with tax collection, we have sought assistance from the International Monetary Fund (IMF) to establish a new revenue authority. These collaborative efforts aim to elevate the country’s economy to approximately 5 percent by the fiscal year 2025-2026.
The current trajectory falls short of our aspiration for future generations, necessitating a growth target of 8-9 percent. Deliberations are underway to chart a course towards achieving this ambitious goal.
