Budget Burdened with Heavy Debt – Pubudu Jayagoda

01-Oct-2025

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The upcoming national budget will carry a massive debt burden, and there will be little difference compared to previous budgets, said Pubudu Jayagoda, Education Secretary of the Frontline Socialist Party.

Speaking to the media, he noted that though allocations to ministries have been gazetted, details on how revenue will be generated will only be revealed when the government presents its budget.

Media reports indicate that the President intends to borrow Rs. 3 trillion, raising serious concerns. 

At the end of this year, Sri Lanka is expected to maintain reserves of USD 7.14 billion. 

However, during the first seven months of this year, only USD 56 million has been added, leaving a need for nearly USD 1 billion more in the remaining months — a goal deemed impossible without borrowing.

The UN report on the 2025 budget highlighted that 60% of government spending is allocated to debt servicing, with little to no allocation for the welfare of the poor.

Jayagoda added that despite coming to power criticizing previous rulers, the current government is continuing with their same policies, including IMF conditions, without real change.