Economic Transformation Bill provide provisions to stabilize Sri Lanka by 2032

• It provides provisions for limiting gross financing needs of the government to 13 percent of the GDP by 2032

 By Yohan Perera  

The Economic Transformation Bill which was presented to Parliament yesterday provides legal provisions for debt restructuring and to stabilize Sri Lanka’s economy by 2032.  

The national policy on economic transformation that would be formed under the Bill shall provide for restructuring of the debt owned by the government and to reduce public debt to 95 percent of GDP during the stipulated period.   
It provides provisions for limiting gross financing needs of the government to 13 percent of the GDP by 2032.  

The Bill provides for transforming Sri Lankan economy to a highly competitive, export oriented digital economy. It aims to diversify the economy and to introduce deep structural changes to the national economy to boost competitiveness, increase integration with the global economy and to achieve stable macroeconomic balances and sustainable debt.  

The Bill also provides for the establishment of an economic commission which will have its principal office in Sri Lanka and branches overseas. The commission will comprise secretary to the ministry of finance, secretary to ministry of investment, chairperson of the office of international trade , chairpersons of investment zones that will be established and six members appointed by the President. The economic commission will be responsible for to create and maintain robust investment climate, to evaluate the need for economic zones, to promote and enable ease of doing business for investors and to review and recommend incentives for promotion of investments.  

Minister of Finance is vested with the power to declare economic zones. These zones could be single sector or multiple sector zones that may include, industries, IT, science and technology enterprises, high technology agriculture enterprises, tourist and recreational enterprises, business service enterprises or livestock enterprises.  
The Board of Investment will be abolished under the legislation.