New Customs Law will be introduced to enhance trade facilitation and revenue collection.
Double Taxation Avoidance Agreements (DTAs) will be expanded beyond the existing 44 DTAs with priority given to countries with high trade and investment potential.
Government to revisit the Economic Transformation Act with appropriate revisions to suit the emerging developments.
Government to lease out under-utilised state-owned land for productive economic activities.
An Investment Protection Bill will be enacted to facilitate and protect investments.
Government to introduce Public Private Partnership (PPP) Bill
Rs. 500 million will be allocated to support the land acquisition process and initial preparatory works of the Kerawalapitiya Customs inspection yard and Bloemendhal Logistics Park
Rs. 1,000 million will be allocated to support the initial development and establishment of advanced scanning systems for Port of Colombo and Bandaranaike International Airport.
Government aims to grow Sri Lanka’s Digital Economy to a level in excess of USD 15 Bn or 12 per cent of the National Economy over the next 5 years and aims to facilitate an increase in the ICT industry’s annual export revenue to USD 5 billion. Rs. 3,000 million will be allocated to bolster the acceleration of Digital Economy Development.
Government to improve tourist safety and facilities through a combination of technology-based solutions linking the tourist police, Government agencies and civic organisations to provide information on tourist attractions, receive security alerts, feedback on tourist experience and monitor complaints to law enforcement authorities.
Government to set up a development bank. As a first step, the function of a development bank through a new administrative structure will be established through the existing state bank mechanism. The Government will support this task through the National Credit Guarantee Institution (NCGI).
Rs. 1,000 million to be allocated to create an Innovation Invention Fund for commercialisation of Research Findings.
All luxury vehicles that require heavy running & maintenance expenses will be auctioned.
Rs. 7,500 million has been earmarked for providing nutritious food, especially for pregnant mothers and Rs. 5,000 million has been allocated for the Triposha programme for the nutrition of mothers and children.
Government health budget for 2025 has significantly increased to an allocation of Rs. 604,000 million.
Rs. 185,000 million allocated to ensure the supply of pharmaceuticals and medical supplies
Rs. 200 million to be allocated for 2025 to establish a treatment centre for children with neurodevelopmental disabilities with international standards at the Lady Ridgeway Children’s Hospital (LRH).
Rs. 250 million to be allocated for developing a model daycare centre for children with Autism
Rs. 10,000 million has already been allocated from the 2025 budget to upgrade school infrastructure while Rs. 135,000 million has already been allocated to improve the quality of the university system.
Proposed to review the school system to prepare a national plan to relocate schools and propose to allocate Rs. 500 million to implement this programme.
Propose to increase monthly Mahapola scholarship from Rs. 5,000 to Rs. 7,500 and monthly Bursary payments from 4,000 to Rs 6,500. A provision of Rs. 4,600 million has already been made in 2025 budget estimates.
Propose to develop specialized sports schools in five provinces; Western, Northern, Central, Uva, and North Central, Rs. 500 million to be allocated for the development of sports schools in five provinces.
Rs. 100 million to be allocated to provide computers and other essential facilities for the Jaffna library. In addition, another Rs. 200 million to be allocated for the development of other regional libraries.
The fertilizer subsidy for paddy farmers will be continued, Government has already allocated Rs. 35,000 million for 2025.
Rs. 2,500 million is proposed to be invested during 2025-26 for the improvement of Dairy Value Chains and to enhance dairy farming productivity through the ongoing Inclusive Connectivity Development Project.
The total public sector investment for irrigation sector development for 2025 is estimated at Rs. 78,000 million.
In order to rehabilitate downstream development of Galoya, Rajanganaya, Minneriya and Hurulu Wewa schemes, an allocation of Rs. 2,000 million is proposed to be provided in 2025.
Rs. 500 million to be allocated for high-yielding coconut seedlings to the growers in the Northern region for planting 16,000 acres of new coconut land in established Northern Coconut Triangle based on CRI recommendation.
· Propose to increase the monthly allowances for kidney patients and people with disabilities from Rs. 7,500 to Rs. 10,000 and monthly allowances for elderly persons from Rs. 3,000 to Rs. 5,000 with effect from April 2025.
Rs. 500 million to be allocated to improve the capacity of childcare centres in the areas of physical and human resource development.
Propose to allocate Rs. 250 million in 2025 to purchase the necessary vehicles to transport children in institutionalized homes
A monthly allowance of Rs. 5,000 for institutionalized children and orphans. Rs. 2,000 to be deposited into a minor’s account, and the remaining Rs. 3,000 be given to their legal guardians under Government supervision for the children’s expenses. Rs. 1,000 million allocated for this purpose
Rs 100 million to establish a comprehensive database on people with disabilities under the Secretariat for Persons with Disabilities in collaboration with the Department of Census and Statistics in the year 2025.
· Compensation for death or permanent disabilities caused by all factors, including natural disasters and damages caused due to wildlife to be increased from Rs. 250,000 to Rs. One million
Government to provide a concessionary ‘Seasonal Food Package’ by allowing people to purchase essential food items at affordable prices. Dry Food Ration including rice, canned fish, dhal, onions, potatoes, and dried fish at a concessionary rate through Lanka Sathosa Ltd, during the upcoming New Year season. Rs. 1,000 million allocated to finance these rations.
Propose to implement a Special Interest Scheme for Senior Citizens. Individuals above 60 years of age will be eligible for one-year fixed deposits of up to Rs. 1 million with an annual additional interest rate of 3 per cent, above the prevailing interest rates in the market for ensuring their financial stability. Rs. 15,000 million to be allocated to subsidize the 3 per cent additional interest to be paid for the senior citizens from July 2025
Rs. 500 million to be allocated to implement a compressive programme to create a drug-free society.
Propose to allocate Rs. 3,000 million for the procurement of 100 low-floor buses. In addition to that SLTB will add 200 low-bed passenger buses to its fleet through its own funds.
Propose to allocate Rs. 500 million to rehabilitate old railway passenger coaches targeting to rehabilitate passenger coaches to enhance the efficiency of services and cater the growing passenger demand.
· Rs. 250 million to be allocated to begin the initial work to extend the Kelani Valley Railway Line, which currently operates up to Avissawella, beyond Avissawella in phases.
Propose to introduce a dedicated rail-based transportation of agriculture products from production centres to destinations. Plan to upgrade the Thambuththegama Railway Station by incorporating loading docks with storage facilities upon the recommendation of the study. Rs. 100 million to be allocated for the feasibility study as the initial step.
Rs. 3,000 million for improvement and rehabilitation of rural roads
Propose Rs.1,000 million allocation to the rehabilitation of rural bridges in addition to the already allocated amount of Rs 1,000 million for the development of the rural bridges island-wide
Rs. 5,000 million for the rehabilitation and improvement of rural roads and bridges in the Northern Province.
Rs. 1,000 million to be allocated to build Vadduvakal bridge aligned with the developmental needs of the Mullaitivu District.
Each MP is to be allocated Rs. 10 million for 2025 utilizing Rs. 2,250 million from the already allocated budgetary provisions of Rs. 11,250 million to minimize the regional disparities. The remaining Rs. 9,000 million will be allocated for the essential development activities.
Rs. 5,000 million to be allocated for Clean Sri Lanka programme in addition to the financial contribution of the donors.
Rs. 300 million to be allocated to hold a “National Cultural Festival”. This festival will be initiated in November and launched in December
Rs.1,500 million has been allocated to meet the needs of resettling internally displaced people (IDPs)
Rs. 1,000 million for essential maintenance of the apartment complexes constructed by the Central Government.
With the assistance of the Government of the People’s Republic of China, 1,996 housing units are being constructed. Apartment complex comprising 108 housing units will be reserved from the Kottawa, Palathuruwatta area for artistes and journalists who make special contributions to the cultural enrichment of our society.
Will implement a strategic recruitment plan to hire 30,000 individuals in essential public service roles, strictly according to cadre vacancies starting this year. Accordingly, we propose to allocate Rs 10,000 million for this purpose in 2025.
Propose to increase the minimum monthly basic salary from Rs.24,250 to Rs.40,000 by Rs.15,750. The current ad-hoc interim allowance and special allowance will be integrated into the basic salary giving a net increase of Rs.8,250 in the minimum salary. Of the total net salary increase, Rs.5,000 and 30 per cent of the balance amount will be paid starting from April 2025, with the remaining 70 per cent being paid in equal portions beginning in January 2026 and January 2027.
Rs.110 billion be allocated for the proposed salary increase in 2025.
The Employers’ Associations have already agreed to increase the monthly Minimum Wage for Private Sector workers from Rs. 21,000 to Rs. 27,000 in April 2025 and to Rs. 30,000 from 2026.
The Government will intervene to increase the daily wages of the workers to Rs. 1,700.
For the year 2025, the bulk of revenue gains is expected to be delivered by the liberalisation of motor vehicle imports that took place on February 01, 2025.
Efforts will be directed toward digitalizing tax systems to reduce leakages and enhance transparency while minimising human interactions in tax administration.
