The Economy Has Reached a Stable Position; Minister Nalinda

10-Nov-2025

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Both fiscal discipline and state financial management are the reasons for the country’s economic stabilisation. It is because the government adhered to these two principles that the economy could be stabilised within one year, Minister Nalinda Jayatissa said.

Speaking during the first day of the debate on the President’s Budget Speech for the upcoming year, he said:

“The country was bankrupt when President Anura Kumara Dissanayake took office. We could not repay debt, and all credit rating agencies downgraded us. Foreign nations refused visas to Sri Lankans because they feared people would not return. Our passport held no value. From such a situation, the President has brought the country to stability.

The opposition claims the groundwork for economic stabilisation was done earlier. If so, why did the then-President Ranil Wickremesinghe say there were no funds to conduct the local government elections scheduled for March 2022? They could not hold the elections until we came to power and did so ourselves.

They also said it would take at least ten years to restore the country to the 2019 economic level. That was the condition of the country we inherited.

People who voted for us in the presidential and general elections would not have believed we could rebuild the economy 100 percent. They voted thinking, ‘Let us see what they can do.’ Yet, within one year, we stabilised the economy—something even international institutions acknowledge.

Many global financial institutions did not believe stabilisation could be achieved in one year. Their projections were based on past governments’ performance. But our administration achieved stabilisation due to two factors: fiscal discipline and financial management. Nothing else.

With committed governance and disciplined execution of our development plan, revenue-generating agencies exceeded expected targets. As a result, we increased government revenue to more than 15.3 percent of GDP and managed expenditure effectively.

Our reserves have reached 6 billion dollars; our target is 7 billion. During the bankruptcy period, debt was 114 percent of GDP; now it has been reduced to 96 percent.

We have stabilised the economy while also providing relief to the public. All necessary relief measures have been granted. Public sector salaries have been increased meaningfully, and will be increased again in January.

Ministries require vehicles to implement development programmes. Since existing vehicles are unusable, funds have been allocated to import the required number.

We are steering the economy towards becoming one of the strongest in the world. We request the opposition to extend support.”