The debt restructuring process is approaching its final stages, with efforts underway to conclude it by December 31, according to Deputy Minister of Economic Affairs and Minister of Labor, Professor Anil Jayantha Fernando. Speaking in Parliament yesterday (5), the Minister highlighted that any delay in the process could result in an additional $1.7 billion in arrears interest. To address such contingencies, Rs. 4,000 billion has been allocated in the interim budget.
During the debate on the Interim Account motion, the Minister outlined key financial plans. If the Appropriation Bill is not passed, an Interim Account will provide funds for the first four months of the next financial year to support public services and ongoing development projects.
The interim budget allocates, Rs. 1,000 billion for recurring expenditures (excluding interest), Rs. 425 billion for capital expenditure, Rs. 1,175 billion for debt restructuring,
This brings the total estimate to Rs. 2,600 billion, against a revenue projection of Rs. 1,600 billion.
The Minister emphasized that development projects for 2025 will be outlined in the Appropriation Bill for that year. He also highlighted key initiatives aligned with the National People’s Power mandate to support economic recovery:
- Advancing national digitalization
- Addressing living standards in the plantation sector
- Promoting peace to facilitate economic progress
- Encouraging direct investments by ensuring a stable business environment
The Minister noted signs of stabilization, with a 2.2% economic growth rate recorded in 2024. Looking ahead, he expressed optimism about continued progress, particularly after the upcoming presidential election.
