President Says US$1 Billion Lost Through Illicit Financial Channels

COLOMBO (News 1st): President Anura Kumara Dissanayake says Sri Lanka is losing around US$1 billion annually through illicit financial channels, despite efforts to earn foreign exchange.

He made the remarks today while addressing the first rally of a series held under the theme "අපේ ආණ්ඩුව වසර දෙකයි - රටට සුබයි" loosely translated to “Two Years of Our Government – Good for the Country” in Bulathsinhala.

The President said the amount is almost equivalent to Sri Lanka’s annual tea export earnings.

He credited the Criminal Investigation Department and Sri Lanka Customs with taking steps to prevent foreign currency from leaving the country through the black economy.

President Dissanayake also said government revenue reached 16.7% of GDP in 2025, the highest level recorded in decades, attributing the increase to measures taken to prevent revenue leakage.

He said Sri Lanka recorded its lowest budget deficit since 1957 in 2025, following increased revenue and tighter control over public expenditure.

The President said Rs. 2 trillion will be allocated for capital expenditure next year, including funding for roads, water supply, waste management and other development projects.

He also announced that Rs. 200 million will be allocated to each district as a development reserve through District Coordinating Committees.

Meanwhile, he highlighted increases in several welfare payments, including:

Mahapola: Rs. 5,000 → Rs. 10,000
Fertilizer subsidy: Rs. 12,000 → Rs. 30,000
Disability allowance: Rs. 5,000 → Rs. 10,000
Senior citizens’ allowance: Rs. 3,000 → Rs. 5,000
Children in care centres: New Rs. 5,000 monthly allowance

The President stressed that increasing state revenue must be accompanied by responsible management of funds and greater discipline in public spending.