Budget 2025 aims to extend stability, policy consistency: Deputy Finance Minister

Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma

•  Dr. Harshana Suriyapperuma acknowledges paradox of high accounting professionals despite direct tax contribution remains low, delivering keynote at CA Sri Lanka Budget Seminar 2025
• Calls for broader tax base instead of burdening existing taxpayers
• Warns financial distress is inevitable, if revenue collection does not improve 
• Asserts Govt. is committed to restore public confidence in taxation, not just through rhetoric —but through tangible actions
• Stresses on need for economic expansion, calls for boost in productive capacity rather than reliance on incremental policy shifts
• Discloses new industrial zones, techno parks were being revived, reversing years of mismanagement where billions were sunk into abandoned projects
• Opines Sri Lanka was on right path, but admits challenges ahead

By Charumini de Silva

Deputy Minister of Finance Dr. Harshana Suriyapperuma yesterday opined that the Budget 2025 was designed to extend the stability achieved in recent months and provide certainty in policy.

Delivering the keynote address at the CA Sri Lanka Budget Seminar 2025, he positioned the Budget as a foundation for economic growth, emphasising that stability and continuity in policy are central to the Government’s approach.

Rather than abrupt policy shifts dictated by political cycles, Dr. Suriyapperuma called for long-term national policies that outlive individual administrations.

“The future of our country cannot be determined by a single leader alone, it must be shaped by collective intellectual input, rational decision-making and strategic planning,” he stated citing the Budget proposals to institutionalise a National Tariff Policy as an example.

He acknowledged the paradox of Sri Lanka’s strong professional base in finance and accounting while direct taxes contribution remains low — a structural weakness that has compounded fiscal distress.

“Sri Lanka has a very high concentration of accountants, but it is little ironic that our direct tax revenue as a percentage of the gross domestic product (GDP) is well below, the internationally accepted threshold of 15%. So, I wonder whether the coronation is supporting the collection of taxes or the opposite of that,” he said.

He warned that financial distress is inevitable if revenue collection does not improve, whilst noting that high tax rates alone were not the solution, as the burden currently falls disproportionately on a small segment of taxpayers.

“Our priority is to broaden the tax base without overburdening those who already pay to ensure that taxation is more equitably distributed,” he added.

The Government’s challenge, he admitted, was to restore public confidence in taxation, which had been eroded by decades of wasteful spending, political excess and weak governance.

The Deputy Finance Minister assured that the Government was committed to reversing this perception, not just through rhetoric but through tangible action. Security details for politicians had been reduced; luxury vehicles auctioned off and State spending curtailed.

Although these measures were largely symbolic in the face of the country’s fiscal challenges, he positioned them as a signal of intent that political leadership was willing to make sacrifices before asking more from the public.

Beyond stability, he stressed the need for economic expansion, calling for an increase in the country’s productive capacity rather than reliance on incremental policy shifts. To this end, he said the Government was prioritising structural reforms, including the formation of a State-run holding company, the introduction of an investment protection Act and the acceleration of insolvency legislation.

These he argued were necessary tools to move Sri Lanka beyond survival into a phase of sustainable growth, given the weight of Sri Lanka’s debt burden, with billions of dollars in outstanding obligations requiring restructuring to avoid further economic distress.

He highlighted the Budget plans for a Development Bank to support SMEs, the revival of abandoned techno parks and the establishment of new industrial zones to stimulate production.

“Other nations have successfully used similar mechanisms to drive growth and we intend to learn from those examples,” he noted.

However, the Deputy Minister noted that incremental changes would not be enough, calling for bold, out-of-the-box thinking to take Sri Lanka’s economy to the next level.

Dr. Suriyapperuma also underscored the importance of digitisation in modernising the economy. “Sri Lanka is poor not just in terms of financial resources, but also in data,” he said, explaining that digital transformation will be a key factor to improving efficiency, reducing bureaucratic bottlenecks and integrating businesses into global supply chains.

Noting that the Government has eased import restrictions on vehicles, Dr. Suriyapperuma cautioned that such measures must be balanced against the country’s foreign exchange reserves and interest rate dynamics. “We reopened the imports with caution, ensuring that they support, rather than destabilise, our broader economic objectives,” he said.

He said one of the Government’s key strategic goals was to integrate local business into global supply chains, a critical step for long-term economic transformation.

He outlined specific provisions in the Budget that aims to support SMEs in overcoming barriers to international trade, including the establishment of certification labs—previously an expensive hurdle requiring businesses to seek accreditation overseas.

Similarly, he disclosed that new industrial zones, techno parks were being revived, reversing years of mismanagement where billions had been sunk into abandoned projects. “We are now inviting investors to complete and operationalise these ventures,” he added.

Throughout his address, the Deputy Minister reiterated that the Government’s approach is rooted in a ‘humane philosophy’ – one that prioritises inclusivity and ensures that vulnerable groups are not left behind.

“The Budget allocates significant resources to social welfare, public service and economic initiatives designed to boost all segments of society. We want a country where every citizen whether in business, agriculture, or public service – can thrive,” he said.

Dr. Suriyapperuma expressed confidence that Sri Lanka was on the right path but acknowledged the challenges ahead. He called on professionals, private sector champions and institutions to work collaboratively with the Government to achieve shared economic goals. “This is a journey we must take together. With the support of professionals, investors and business community, Sri Lanka will reach the destination we all deserve,” he expressed optimism.