The Ceylon Chamber of Commerce welcomes the bold proposals in the 2025 Budget, which align with its recommendations, discussions at the Sri Lanka Economic Summit, and Vision 2030 goals.
The budget focuses on stability, governance, public relief, anti-corruption measures, and inclusive growth.
Key priorities include infrastructure expansion through Public-Private Partnerships (PPPs) and initiatives to drive the digital economy, laying a strong foundation for economic transformation.
The Chamber appreciates the Government’s recognition of the need to reform the Customs Ordinance and implement the National Single Window—both critical for enhancing trade facilitation and improving the ease of doing business.
It also acknowledges the planned Economic Transformation Act amendments and the introduction of legislation on PPPs.
Timely execution of these reforms will foster a more conducive environment for private-sector investment in key sectors such as ports, tourism, and infrastructure, as highlighted in the budget speech.
Policy Continuity: Taxation and Fiscal Framework
The Chamber commends the Government for maintaining policy consistency by retaining the existing tax framework and avoiding ad-hoc tax measures to match expenditure proposals.
Adhering to the Public Financial Management Act, which caps primary expenditure at 13% of GDP, is a positive step toward rebuilding investor confidence and strengthening Sri Lanka’s global credit standing.
Ensuring tax stability and simplifying compliance will be crucial for fostering a competitive business environment.
Bold Reforms Require Timely Implementation
To translate the Budget’s vision into tangible benefits for the public, the proposed reforms must be implemented within clear timeframes. For example, the National Single Window, a long-standing private sector request, requires firm government commitment to a structured implementation plan.
The Chamber welcomes the plan to establish a holding company for state-owned enterprises (SOEs), aligning with global best practices to improve governance, financial discipline, and efficiency.
Its success will depend on clear timelines, independent oversight, and transparency.
Digitalisation and e-governance initiatives, such as the Unique Digital ID and the Apex Digital Economy Authority, are also positive steps toward reducing bureaucracy and enhancing transparency.
Consultation Needed for Specific Proposals
Certain proposals require stakeholder consultation before implementation. The transition from the current SVAT system to a risk-based refund system should include stress-tested pilot programs to ensure a smooth and efficient process.
Similarly, changes to the private sector minimum wage must be approached through a consultative process that balances business sustainability with broader labour reforms, including higher women’s economic participation and flexible work arrangements.
While the budget prioritises investment-driven growth, stronger support for micro, small, and medium enterprises (MSMEs) is needed, as they are crucial for employment and economic resilience.
The Rs. 254 billion allocation for agriculture should be backed by a clear strategy for modernisation, value chain development, and climate resilience.
Strengthening policies on sustainable farming, irrigation, and private-sector agro-processing is essential to mitigate climate change impacts.
Alignment with Chamber Recommendations and Vision 2030
The Government’s emphasis on investment-led growth, trade, digital transformation, and public sector reform aligns with the Ceylon Chamber’s recommendations.
While the 2025 Budget effectively addresses fiscal consolidation, investment facilitation, and governance, its success depends on timely implementation, policy stability, and stakeholder collaboration.
The Chamber remains committed to working with the Government to refine and execute these policies, ensuring a resilient, inclusive, and globally competitive economy.
