Minister Gunawardena Highlights Economic Strengthening Laws and Development Initiatives
August 08, Colombo (LNW): Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardena announced that for the first time, national programs aimed at strengthening the country’s economy have been passed into law in accordance with international standards. He made this statement during a press conference in Kandy on Tuesday evening, after reviewing development activities in the city, including the construction of the Getambe flyover with assistance from the Hungarian government. Representatives from Hungary were also present.
Minister Gunawardena emphasized several key legislative measures:
- Central Bank Act: Suspends the printing of money for price stabilization.
- Debt Control Act: Prevents the government from borrowing at exorbitant interest rates.
- Public Financial Management Act: Ensures economic policies are consistent and budgets are prepared by experts from the Budget Committee.
- Anti-Corruption Act: Strengthens efforts to combat corruption.
He highlighted recent agreements, including a Comprehensive Loan Agreement with the International Monetary Fund (IMF) and debt repayment agreements with the Paris Equity Group, China, and India.
“In our effort to develop Kandy as a green city, representatives from the World Bank have shown interest in providing 200 electric buses on a loan basis,” Minister Gunawardena stated. He underscored Sri Lanka’s commitment to reducing its debt to 95 percent of GDP by 2032, down from the current 128 percent.
Key financial targets outlined by the Minister include:
- Government’s gross financial requirement not exceeding 13 percent of GDP.
- Loan installments and interest payments capped at 4.5 percent of GDP.
- Maintaining a 2.3 percent primary account surplus in the Budget.
- Limiting the balance of payments deficit to no more than 1 percent of GDP annually.
- Sustaining a growth rate above 5 percent per year.
- Keeping unemployment below 5 percent and increasing female labor participation to 40 percent.
Minister Gunawardena stressed that these laws, aligned with international agreements, are part of a broader strategy to transform Sri Lanka into a developed country with a per capita income of USD 20,000 by 2048.
Also present at the press conference were Investment Promotion State Minister Dilum Amunugama, Transport and Highways Ministry Secretary Ranjith Rubasinghe, and Marton Laszlo, Honorary Consul of Sri Lanka to Hungary and CEO of Betonutepito.
