Prime Minister Dr. Harini Amarasuriya emphasized that the 2025 Budget clearly outlines the values and principles upon which the government’s future course is established. She made these remarks in Parliament on February 25, 2025, during the first vote of the budget debate.
"It is a privilege to speak at this moment as we present the very first budget of the National People's Power Government. I urge the people of our country to look beyond the statistics and carefully examine the vision and philosophy reflected in this budget," the Prime Minister stated.
Dr. Amarasuriya underscored that this budget represents a new direction for the country, introducing a fresh perspective rooted in the core principles of the National People's Power Government. It articulates the government’s vision, objectives, and the society it aspires to build, making clear the values that should define the nation moving forward.
Addressing the opposition’s criticism, which labels the budget as neoliberal and an extension of the previous administration’s policies, she remarked that such arguments stem from a fundamental misunderstanding of the government’s ideological stance.
"The opposition attempts to frame this budget within a neoliberal framework, yet in the same breath, they claim these are policies they themselves intended to implement. Their critique is contradictory, revealing a lack of understanding of our approach. As a left-wing party, National People's Power is often misrepresented by the opposition, which fails to grasp the ideological foundation of this budget."
The Prime Minister elaborated on neoliberal economic principles, noting that they are typically characterized by minimal government intervention in economic affairs, a market-centric approach with unrestricted free-market operations, and a strong emphasis on individualism over collective social structures. She cited Margaret Thatcher, a key proponent of neoliberal thought, who famously asserted that "there is no such thing as society, only individuals." This statement, she explained, epitomizes the individualistic ideology embedded in neoliberalism.
However, Dr. Amarasuriya contended that Sri Lanka has never truly implemented a neoliberal economic model, despite opposition parties attempting to frame past economic policies as such. Rather than a system driven by free-market principles, previous governments created an economy built on favoritism, cronyism, and personal alliances, leading to corruption and economic mismanagement.
"Governance, according to liberal thought, should be distinct from public service. However, those who previously governed have used public institutions as personal assets, expanding them arbitrarily to serve their own interests. Instead of fostering a free and competitive market, they distorted it through interventions that prioritized personal and political agendas. The result was not a structured economic ideology but a fragmented, corrupt system that prioritized individual gain over national progress."
Dr. Amarasuriya concluded by acknowledging the challenges inherited by the current government, stating that Sri Lanka did not inherit a functioning neoliberal state but rather a deeply flawed economic system burdened by corruption and inefficiency. She emphasized that this budget is not merely a continuation of past policies but a strategic framework designed to reshape the country’s economic and social landscape, guided by the values and principles of the National People's Power Government.
This budget embodies the principles of collectivism, equitable intervention to strengthen society, equality, fairness, and democracy. It is not merely a democracy in form, but a democracy that ensures meaningful public participation. In addressing market regulation, the government's role extends beyond merely overseeing the market; rather, it envisions a market built through collaborative intervention by both the public and private sectors. We do not perceive the government’s function as limited to regulation alone—it has an active role to play in shaping and supporting the economy. This vision is reflected throughout the budget, and we have conceptualized it as economic democracy.
This budget ensures that no one is left behind. It addresses the needs of women, children, and all marginalized and oppressed groups, offering targeted measures for their welfare and advancement. For years, we have advocated for the socialization of institutionalized children and strengthening child protection mechanisms, and this budget takes significant steps in those areas. It also reassesses the judicial treatment of children, enhances women’s economic participation and financial security, and prioritizes investment in education and healthcare to benefit all citizens.
There have been misleading claims that taxes have been added to medicines. These assertions are entirely false. There is no VAT on imported medicines, and in fact, VAT on raw materials required for local pharmaceutical packaging has been removed, supporting domestic production and affordability.
The budgetary allocation for education has been increased to an unprecedented level, covering early childhood education to higher education, with specific funding allocated for students with special needs. This budget represents our commitment to strengthening and safeguarding society, fostering national unity, and establishing a foundation of collectivism.
A key initiative introduced in this budget is the designation of Sri Lankan Day, for which LKR 300 million has been allocated. Many national celebrations have traditionally been confined to specific groups, but for the first time, we propose an event that allows all Sri Lankans to come together to celebrate their diversity and affirm their collective identity. Sri Lankan Day will provide an inclusive platform for every citizen to express their pride in the country, reinforcing unity and shared national values.
Every page and every provision of this budget reflects our commitment to collectivity, fairness, and democracy. Additionally, we have taken concrete steps to engage the public in transformative change through initiatives such as the Clean Sri Lanka program. Democracy is not merely about casting a vote during elections; it is about active participation and shared responsibility in shaping the country’s future. This budget expands the scope of democratic engagement, encouraging citizens to be directly involved in the nation’s progress.
When we assumed responsibility for governing this country, we were faced with two choices. We could have chosen fear, clinging to the existing structures, or we could have embraced courage, using the crisis as an opportunity for profound transformation. We chose the latter. Despite obstacles and challenges, we remain steadfast in our determination to break away from the stagnation of the past seventy years and chart a new course for the future.
This is the first budget presented with that vision and determination. We have made every effort to maximize social security allocations within our fiscal constraints, ensuring that we stay committed to our long-term objectives. Even within these limitations, this budget clearly defines the direction in which we intend to take this country.
Another accusation being raised is that the government has not done justice to the armed forces. However, those making such claims are well aware that our policy statement clearly outlines our commitments in this regard. We have fulfilled those commitments, and this is reflected in our actions. It was a moment of immense pride to hear the President’s speech, affirming that the principles and initiatives we have advocated for over the years are now being implemented through our maiden budget.
Additionally, false claims are being made that salaries have not been increased. The government has delivered on its promise to increase the salaries of teachers and principals. With the proposed salary adjustments, principals now rank 7th among the highest-paid public sector employees, while teachers rank 8th. These salary increases have positioned them among the top ten highest-paid professionals in the public service.
As part of this salary revision, principals will receive an increase of LKR 30,105, while teachers will receive an increase of LKR 25,360. The minimum salary has also been increased by LKR 15,750.
These salary increments must be viewed with seriousness, as they reflect the government's commitment to restoring dignity and value to the public service. Unlike previous governments, which not only weakened the public sector but also created significant instability through arbitrary recruitments, this government recognizes the vital role of a strong, efficient, and reliable public service. The trust of public servants in their own profession was systematically eroded by past governments, leading to negative perceptions of the sector within society.
A stable and effective public service is essential for national progress, which is why the government is making this strategic investment. Despite facing economic challenges, we have prioritized increasing the basic salary, demonstrating our commitment to structured and sustainable development. This is being done within existing limitations, but with the firm conviction that the people understand and support this process. The government is moving forward in partnership with the people, and it is evident that public confidence in these reforms remains strong.
This budget is not merely another financial plan—it is historic. It represents a turning point for the country, marking a decisive shift in national policy. Much like the 1977 budget, which reshaped the economic trajectory of the nation for decades, this budget carries equal significance in redefining the country's future. It is not just a fiscal document but a blueprint for national transformation, influencing mindsets, societal structures, and governance frameworks.
This is our first budget, and while there is still much work ahead, its importance lies in the clear direction it establishes. We have not only envisioned a prosperous and just society, but we have also set the foundation for making it a reality.
Previous governments introduced legislation aimed at protecting the rights of women and children. While these laws and policies were well-intended, they often remained limited to paper, failing to translate into real change. The effectiveness of such policies depends on budgetary allocations that support tangible programs. Unlike in the past, we have ensured that financial resources are allocated to areas where the need is most felt.
This budget is not just about economic reform—it is about justice, equality, collectivism, and humanity. It is a budget that transforms the country, ensuring that policies are not merely written into law but are actively implemented to create meaningful and lasting change.
