2025 Budget targets inclusive growth through bold reforms: CCC

The Ceylon Chamber of Commerce (CCC), the premier representative of Sri Lanka’s private sector welcomed “bold proposals” in the budget, as majority aligned with its recommendations, the Sri Lanka Economic Summit discussions, and Vision 2030 goals. 

The CCC said it finds the 2025 Budget focuses on stability, governance, public relief, tackling corruption, and driving inclusive growth, whilst also emphasising on infrastructure expansion through Public-Private Partnerships (PPPs) and digital economy initiatives. These provide a strong foundation for transformation, it said.

“Timely execution of these reforms will create a more conducive environment for private sector investment in key sectors such as ports, tourism, and infrastructure, as highlighted in the budget speech,” it said.

Touching on the positives, the Chamber commended the government for maintaining policy consistency by retaining the existing tax framework and avoiding adhoc tax measures to match the expenditure proposals. 

“Adhering to the Public Financial Management Act, which caps primary expenditure at 13 percent of GDP, is a positive step toward rebuilding investor confidence and strengthening Sri Lanka’s global credit standing. Ensuring tax stability during the year and simplifying compliance will be crucial for fostering a competitive business environment,” it noted.

However, it stressed that bold reforms require timely implementation to translate the Budget’s vision into a reality that will be felt by  the public. 

The Chamber said it also welcomes the plan to establish a holding company for SOEs, aligning with global best practices to improve governance, financial discipline, and efficiency. Its success will depend on clear timelines, independent oversight, and transparency. The focus on digitalisation and e-governance is also a positive step, with initiatives like the Unique Digital ID and the setup of an Apex Digital Economy Authority to reduce bureaucracy and enhance transparency, it said.

Meanwhile, the transition from the current SVAT system to a risk-based refund system requires careful execution, including stress-tested pilot programmes to ensure a robust and efficient refund process, it said.

The changes to the minimum wage for private sector should be carried out in a consultative process and align with business sustainability and broader labour reforms that advocate for higher women’s economic participation and flexible work.

The CCC noted the budget prioritises investment-driven growth but needs stronger support for MSMEs, vital for jobs and resilience. 

The 2025 budget effectively addresses fiscal consolidation, investment facilitation, and governance, its success depends on efficient time-bound implementation, policy stability, and stakeholder collaboration, the Chamber said.