LNP – AKD’s maiden budget a bold reset for Sri Lanka

President Anura Kumara Dissanayake delivered his first budget speech before Parliament yesterday,

outlining a financial roadmap that doubles as a manifesto for change. Delivering the speech in Sinhala with quiet confidence, he set the tone for an administration determined to reshape the islandnation’s economic trajectory while staying true to its reformist ideals.

The proposals were largely unsurprising but focused on growth, offering something for everyone while emphasizing improved livelihoods.

Many had expected changes, and hoped for them to not painful. But the budget sought to balance continuity with reform.

At the outset, President Dissanayake noted that this budget differs from traditional ones. Funds have been allocated to sustain ongoing initiatives while making adjustments to align with the government’s mandate.

At the core of the plan were boosting production in industry, services, and agriculture; encouraging public participation in economic activities; and ensuring equitable distribution of benefits. On the demand side, the promise was to maintain an uninterrupted supply of essential goods and services,fair pricing, and acceptable quality standards.

To achieve these objectives, the President outlined a hybrid economic approach that blends market competition, government regulation, and state intervention where necessary. He emphasized that the government’s role is to facilitate and remove barriers preventing people from reaching their economic potential.

“…we intend to set a foundation to create an economy where all citizens are active participants, active stakeholders, and active beneficiaries,” Dissanayake said.

He stressed that it is an injustice when individuals cannot fulfill their economic potential due to geographical limitations, disability, lack of education, or inadequate infrastructure. The change he admitted will take time and would require sustained efforts to empower people and integrate them into economic progress.

As with past budgets, this one included salary increases for the public sector. However, it was the proposed increase in private sector minimum wages that drew the loudest cheer. The private sector, often seen as the engine of growth, is rarely considered in salary revisions. The upward adjustments will be phased out to ensure smooth implementation.

Public reaction has been largely positive, particularly regarding the emphasis on education, healthcare, and infrastructure, key areas essential for equipping Sri Lankans for modern economic opportunities both locally and abroad.

Beyond immediate relief measures, the budget also set the stage for long-term economic reform. It highlighted priorities such as sound financial and debt management, human capital investment,export promotion, public-private partnerships (PPPs), digitalization, innovation, and anti-corruption

measures.

These policies, Dissanayake said, will help Sri Lanka capitalize on post-crisis opportunities and drive a transformative shift in its economic trajectory.

Reflecting on his administration’s composition, the President noted that it includes “some of the most passionate and disciplined politicians” alongside accomplished academics and professionals who have made personal sacrifices for national progress.

“Together, we have begun a monumental effort. We have brought down costs of living. We have begun restoring confidence in our justice system. And we have for the first time banished not just corruption but even the appearance of corruption from the highest echelons of power,” he said.

Dissanayake struck an optimistic note, saying that Sri Lanka stands at a historic turning point with an opportunity to redefine its place in the international stage. For this he Urged citizens to unite for a better future.

“I see a chance for a united Sri Lanka, for a clean Sri Lanka, for a prosperous Sri Lanka, to surpass everyone’s expectations.”

This budget, like those before it, sets expectations, and its success will depend on execution.

Economic growth projections, aimed at 5 percent this year, remain optimistic. However, Sri Lanka’s path to sustainable recovery will require consistency in policy implementation and public trust will be key.