Sri Lanka set for record-breaking economic year – President

Sri Lanka President Anura Kumara Dissanayake, addressing Parliament today (August 7), declared that 2025 is on track to become the most successful year in Sri Lanka’s economic history, highlighting significant growth in foreign direct investment, tourism, exports, and government revenue.

Speaking confidently about the nation’s recovery, the President said, “We are providing the necessary infrastructure for industrialists, but they must also pay taxes properly.”

Record Growth in Key Economic Sectors

According to the President, Sri Lanka has seen a 101% increase in foreign direct investment (FDI) during the first six months of 2025, rising from USD 252 million in 2024 to USD 507 million this year. He said the country is expected to earn over USD 1 billion in FDI by the end of 2025.

“We believe certain concessions are necessary to attract FDI. We don’t have large raw material reserves or a big market. That’s why we face many challenges in attracting investors,” he added.

Tourism income has also increased by 10% compared to last year, and 2025 is expected to bring in the highest revenue from both tourism and exports in Sri Lanka’s history.

Colombo City Project and Vehicle Imports

The President said the government has approved USD 1,313 million in foreign investment for the Colombo City Project, which he described as vital for the country’s future development.

After five years, vehicle imports have resumed, and so far, Letters of Credit (LCs) worth USD 1,268 million have been opened. By December, this figure is expected to reach between USD 1.5 to 1.8 billion.

“There is false news spreading about restrictions on vehicle imports. I assure the public – no such restrictions will be imposed. We are keeping the market open,” the President said, adding that no new taxes will be introduced for vehicles.

Government Revenue Exceeds Targets

The President revealed that government revenue collection is performing above expectations:

• Inland Revenue Department exceeded its target by 101%
• Customs Department exceeded its target by 115%
• Excise Department reached LKR 143 billion, surpassing the LKR 136 billion target

He confirmed that the government’s total revenue target of LKR 4.5 trillion is achievable this year, despite earlier doubts.

“This is not due to tricks. We have restructured the Inland Revenue, Customs, and Excise departments. We are going after tax evaders. There is a list of 200 major tax defaulters who owe between LKR 100 to 150 billion,” the President stated.

He also noted an 18% increase in local investment through the Board of Investment (BOI), which contributes to job creation and overall economic stability.

Sugar Industry and Tax Policy

Addressing the crisis in the sugar industry, the President acknowledged that production costs remain high and the industry is outdated. He proposed imposing a LKR 50 tax per kilogram on imported sugar to stabilize prices and protect local producers.

“The government is giving LKR 1 billion to sugar companies. But reducing taxes is meaningless if they don’t pay taxes or salaries. We will resolve this issue starting this week,” he assured.

Stable Economy and Political Stability

President Dissanayake confirmed that the country’s foreign reserves will reach USD 7 billion by December, and that the government currently holds LKR 1,000 billion in funds.

He emphasized that unlike in the past, artificial economic manipulations will not be allowed, and the government is committed to maintaining market discipline.

“The indicators show we’ve brought the economy to a stable state. If the opposition is waiting for this government to fall due to an economic crisis, street protests, or elections – that won’t happen,” he stated firmly.

President Dissanayake concluded by affirming that his government is operating under a clear rebuilding plan and is determined to lead Sri Lanka toward long-term prosperity.