Economic Reforms: Path to Persistent Stability

COLOMBO (News 1st); Sri Lanka's Treasury Secretary Mahinda Siriwardana, stressed on the critical need for continued economic discipline and reform in Sri Lanka. 

Speaking in Colombo, Siriwardana reflected on the nation's journey through economic challenges and the importance of maintaining the hard-earned stability.

"I hope we never forget the errors that led us to this crisis and the incredible difficulty endured to reach where we are today," Siriwardana stated. 

He highlighted the significance of the 2025 budget, currently under debate, describing it as a milestone. "The government faced the challenging task of ensuring the budget could catalyze economic growth without compromising the stability we have fought so hard to achieve."

Siriwardana praised the government's pragmatic approach, emphasizing the importance of fiscal policy discipline and reform continuity. 

"The political leadership quickly understood the importance of macroeconomic discipline and reform continuity. The budget focuses on the key priorities of the new government's policies as reflected in the manifesto."

"This effort culminated in sovereign credit rating upgrades by both Fitch and Moody's, providing a significant boost to Sri Lankan firms' ability to engage with global financial markets at a lower cost. As fiscal stability and macroeconomic conditions improve, we expect further credit rating improvements and easing financial conditions," he said on Debt Restructuring.

Siriwardana warned against complacency, stressing the need for continued hard work. 

"A reversal of policy reforms and a lapse in fiscal and monetary discipline can quickly lead to a vicious cycle, resulting in economic distress. Continued revenue enhancement and meeting primary budget balance targets are central to persistent economic stability."