Former Finance Minister Ravi Karunanayake expressed his satisfaction with the direction of the 2025 budget, and praised the government for continuing the policies of former President Ranil Wickremesinghe.
Karunanayake stated that the budget reflects a positive shift towards economic stabilization, something that is beneficial for the country in the long term.
He highlighted that while some may have expected a budget leaning towards left-wing policies, the government’s approach towards economic stability and its focus on financial discipline were encouraging.
Karunanayake mentioned that despite challenges, this budget provides a clear pathway to reducing Sri Lanka’s economic instability.
The former minister explained that the government’s decision to raise public sector salaries by 80% was a commendable effort, and the proposed increase in wages over the next three years will be beneficial for employees.
However, he also pointed out that while the increase is a positive step, the real impact of these wage hikes on the public will need to be closely monitored.
Karunanayake also expressed concerns over the country’s financial management, stating that although Sri Lanka needs to reduce government spending, there is a need for greater fiscal discipline.
He pointed out that the country has yet to receive clear explanations on how it plans to secure additional funding from international sources such as the IMF.
Regarding the private sector, he noted that the government had not provided sufficient support to encourage wage increases, and some practical challenges may arise in implementing these measures.
He raised concerns over the lack of significant reforms in state-owned enterprises, such as the airline industry, could hinder future progress.
On the issue of foreign exchange reserves, Karunanayake noted that while the country’s foreign exchange position had improved, there was no visible encouragement for foreign investors. He stressed the need for reforms at institutions like the Board of Investment (BOI) to attract foreign investment.
Despite his concerns, Karunanayake concluded by stating that he was pleased with the overall direction the government was taking, particularly in terms of fiscal policy. He emphasized that President Ranil Wickremesinghe’s leadership is steering Sri Lanka toward a path of recovery and economic growth.
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