“The Sri Lankan government is poised to present two significant bills aimed at fortifying the nation’s economy to parliament on Wednesday, as announced by Minister of State for Finance, Shehan Semasinghe, during a press briefing on Monday.
The proposed ‘Economic Transformation Bill’ and ‘Public Financial Management Bill’ are tailored to bolster public finance management and safeguard against potential economic downturns. Semasinghe emphasized the importance of maintaining optimal levels of public financial management to prevent future economic crises, noting that these bills align with recommendations stemming from collaborative efforts with the International Monetary Fund (IMF).
The legislation encompasses reforms essential for international trade, trade agreements, and initiatives related to climate change mitigation. Semasinghe highlighted that in 2022, Sri Lanka’s public debt ratio stood at 128%, with plans to reduce it to below 95% by 2032. Similarly, the fiscal requirement, which accounted for 34.6% of gross domestic product (GDP) in 2022, is targeted to be lowered to below 13% by 2032.”