Minister of Transport, Highways and Mass Media, Dr. Bandula Gunawardhana has invited Samagi Jana Balawegaya (SJB) Presidential candidate Sajith Premadasa and National People’s Power (NPP) Presidential candidate Anura Kumara Dissanayake for a public debate with President Ranil Wickremesinghe on his national economic policy and his policy statements, which have been passed by Parliament. The Minister said that if the main candidates are unable to participate, a representative specialised on the subject should be sent.
The Minister said the Karata Kara political program telecast on Monday at 10.00 pm by Sri Lanka Rupavahini Corporation (SLRC) or the Tulawa political program telecast on Thursday at 10.30 pm on Independent Television Network (ITN) would be suitable.
He was speaking at a press conference at President Ranil Wickremesinghe’s political office at Flower Road, Colombo.
The Minister said that President Wickremesinghe is running as an Independent candidate at this year’s Presidential Election to formulate a national policy and implement that road map properly and not to implement any party’s agenda.
Dr. Gunawardhana said that a national policy agreed upon by all MPs to build the future of Sri Lanka has been passed into law and those laws will help make Sri Lanka a rich country that will eradicate poverty by 2048.
The Minister said, “After the complete collapse of the country’s economy in 2022, the country’s foreign reserves dwindled due to the economic growth rate dropping to a negative 7.8 percent. Because the world did not accept letters of credit for imports, there was a huge economic disaster with no petroleum, gas, food, machinery or spare parts. After protecting democracy and Parliament in the face of that economic disaster, an extended loan facility program was entered into with the International Monetary Fund (IMF) in the short term to save the country.”
According to the Extended Loan Facility agreement reached with the IMF, the three years – 2025, 2026 and 2027 have to be in keeping with the loan agreement. For example, if we don’t have the loan agreement, we will not be able to prepare Budget 2025. For the year 2025, the external foreign resource gap of US$ 5 billion will have to be covered by the Extended Credit Facility of US$ 663 million from the IMF, US$ 700 million received for support in preparing the Budget, US$ 400 million provided by the World Bank and US$ 300 million received from the Asian Development Bank (ADB).
Irrespective of the President of the country or the Government, it has been predicted that there will be a deficit of US$ 3,911 million in external resources in 2027. President Wickremesinghe, as the Minister in charge of Finance, will receive US$ 329 million under the Extended Funding Facility according to the agreement signed by the Ministry of Finance. US$ 600 million will be received to prepare the Budget for the year 2027. The World Bank will provide US$ 300 million and the ADB will provide US$ 300 million. A loan relief of US$ 1482 million is available. Therefore, US$ 1.5 billion US dollars will be insufficient to maintain the country in 2027. That’s a huge amount of money.
US$ 1.4 million was invested to build the Port City, the largest investment in the country. We will lack US$ 1.5 million in 2027. At that time, the IMF will allow us under that agreement to go to the international market and issue a sovereign bond.
In order to get it in 2027, we need to increase our foreign assets to US$ 8 billion in 2025 and US$ 10 billion in 2026. If Sri Lanka’s foreign resource assets reach US$ 14 billion in 2027, it will be possible to go to the international market and issue a sovereign bond and obtain loans. If those conditions cannot be met, whoever governs will not be able to run the Government beyond that point. In order to maintain the country’s exchange rates without collapsing when the debt payment starts from 2028, economic experts from around the world should prepare a national policy to sustain the country with the experts of the country. Accordingly, we have adopted the Economic Transformation Act No. 45 of 2024 this year. This is the economic policy and program of President Wickremesinghe.
This law adopted by the Parliament has three main objectives and it has specific goals. By 2032, the country’s total outstanding debt as a percentage of Gross Domestic Product should be below 95 percent and sustained. The Government’s gross money supply ratio as a percentage of Gross Domestic Product cannot exceed 13 percent. Foreign loan premiums and interest payments cannot exceed 4.5 percent of the Gross Domestic Product.
By the year 2032, Government revenue should be 15 percent or more of the Gross Domestic Product. The current account deficit in the balance of payments cannot exceed one percent of the Gross Domestic Product and by that year, a surplus of 2.3 percent should be created in the primary account of the State budget.
The economic growth rate should be five percent or more from 2027. The rate of unemployment should also be maintained below five percent and female labour participation should be over 40 percent. As a result, inflation will be in single digits and the economy will grow rapidly.
Digitisation, Artificial Intelligence and agricultural modernisation are also included. For the implementation of this Act, several new institutions have been set up so that Foreign Direct Investment can be approved immediately. Institutions such as the National Economic Commission, Office of Free Trade Zones and International Trade, National Productivity Bureau, Institute of Economics and Foreign Trade will be set up next year. The Constitution also contains provisions that the Cabinet is responsible to implement this Act. Accordingly, the Cabinet must take responsibility to lead the relevant institutions to transform the economy.
A national policy agreed upon by all MPs to build Sri Lanka has been made law. Simultaneously, four other major Bills have also been passed. Every Government in recent history had printed money. The Central Bank of Sri Lanka Act No. 16 of 2023 has prohibited money printing by the Central Bank. Despite death threats and told to print money, the Central Bank and its Board of Directors cannot print money hereafter.
The Public Debt Management Act No. 33 of 2024 has also prevented politicians and Governments from borrowing as they wish. According to the Public Finance Management Act No. 44 of 2024, promises by politicians on election platforms cannot be included in the Budget. Even if they say things against the goals of the Economic Transformation Act in the election platforms, nothing can be done according to this law. Parliament has a Budget Office for this and there are subject specialist officers. Even though the Governments say those officials do not include the facts something can be included in the Budget only according to the Public Finance Management Act. It includes Budget preparation procedures.
An Anti-corruption Act No: 09 of 2023 has also been passed and it is a very strong law. State Ministers, MPs, Local Government representatives, trade union leaders, media organisations and journalists should disclose their assets. The method by which a media organisation receives money should be disclosed.
These laws have prepared the road map to uplift the country from where it fell and turn it into a prosperous country with a per capita income of more than US$ 20,000 by 2048.
