Sri Lanka to Introduce Key Bills to Strengthen Economic Stability

The Sri Lankan government will introduce two major bills to parliament on Wednesday aimed at bolstering the country’s economy, State Minister of Finance Shehan Semasinghe announced on Monday.

The “Economic Transformation Bill” and the “Public Financial Management Bill” are designed to improve public finance management and safeguard against future economic downturns. These bills align with recommendations from a collaborative program with the International Monetary Fund (IMF), Semasinghe said at a press conference.

Semasinghe emphasised the necessity of maintaining optimal levels of public financial management to avert future economic crises. The proposed legislation includes reforms crucial for international trade, trade agreements, and climate change mitigation.

In 2022, Sri Lanka’s public debt ratio was 128%. The government aims to reduce this to less than 95% by 2032. Additionally, the fiscal deficit, which was 34.6% of the gross domestic product in 2022, is targeted to be lowered to below 13% by 2032, according to Semasinghe.

The introduction of these bills is part of Sri Lanka’s broader strategy to stabilise and grow its economy following recent financial challenges.