Development and modernization in various sectors through new politics.........!
Development and modernization in various sectors through new politics.........!
Development and modernization in various sectors through new politics.........!
Development and modernization in various sectors through new politics
1. Political Background
Sri Lanka gained independence in 1948.
Initially, the administration was carried out following the principles of parliamentary democracy in Western countries.
Various political parties and nationalist movements emerged.
In 1972, Sri Lanka was transformed into the Democratic Socialist Republic of Sri Lanka.
In 1978, a change was made to the modern executive committee system - executive presidential system.
2. New political changes (post-2000)
2005–2015: Mahinda Rajapaksa's rule - crisis politics, end of the civil war.
2015–2019: Reconciliation politics, improvement of foreign relations through Yahapalanaya (good governance).
2019–2022: Gotabaya Rajapaksa's rule, economic crisis.
After 2022: Democratic trend, moves towards political changes.
3. Modern trends in the education sector
The government has established free education.
Expansion of universities, technical education institutions.
New curricula – ICT, STEM subjects.
Priority for English and computer education.
Connection with global education through MOOC (Massive Open Online Courses).
4. Development in the health sector
Free health services.
New hospitals, health centers.
Control of epidemics (COVID-19, dengue).
Modern services including telemedicine.
Vaccination programs and social welfare programs.
5. Economic growth and challenges
Development programs with the end of the civil war.
Development in the agriculture, fisheries, tourism sectors.
Colombo Port City, Megapolis projects – urban development. (But: severe economic downturn in 2022, price increases).
New political measures – IMF agreements, international debt restructuring.
6. Technological development
4G/5G technology.
Digitalization of government services (e-government).
Online education, e-learning channels.
Development of IT parks, startups.
Technical training for youth.
7. Social welfare schemes
Women and child welfare schemes.
Family assistance schemes, nutritional schemes.
Poverty alleviation measures.
Promotion of ethnic and religious harmony.
8. Environment and Sustainable Development
Modern wind and solar energy projects.
Green city projects.
Wildlife conservation measures.
Plastic eradication and cleaning laws.
9. Impact of modern trends
Development of administration based on modern technology.
Increasing political awareness of youth.
Opportunities for foreign investments.
Expressing people's voice through social media.
10. Future vision
Political stability and Brahmin modernity.
Improving education and job opportunities.
Independent media, democratic institutions.
Economic growth with environmental protection.
Current Government of Sri Lanka
• The current President of Sri Lanka is Anura Kumara Dissanayake. He took office on 23 September 2024.
• Dissanayake, the leader of the Janatha Vimukthi Peramuna (JVP) and National People's Power (NPP) coalition, was elected as the 10th President of Sri Lanka.
• He defeated the previous President Ranil Wickremesinghe to become the first Marxist President of Sri Lanka.
• The current government led by Anura Kumara Dissanayake is moving towards development and modernization through new political methods in various sectors of Sri Lanka.
• Anura Kumara Dissanayake was elected as the 10th President of Sri Lanka in September 2024.
• Under his National People's Power (NPP) movement, important changes have been made in the fields of politics, economy, social welfare, foreign relations and the eradication of corruption.
• In his inauguration speech, the President laid out plans to address the country's economic crisis. He has been focusing on key issues such as anti-corruption measures, social welfare programs, and land rights recovery.
• Furthermore, the National People's Power (NPP) coalition led by Dissanayake won 159 of the 225 seats in the November 2024 parliamentary elections, securing a 2/3 majority.
• The Dissanayake-led government is making progress in restructuring the country's debt under a $2.9 billion International Monetary Fund (IMF) assistance program.
• Dissanayake is considered a game changer in Sri Lanka's political history. He does not belong to traditional political families, and acts as a guarantor of the trust of the people affected by corruption and the economic crisis.
1. Political changes and modern trends
• Anura Kumara Dissanayake, Mere regime change is not enough; He emphasizes the need for a complete transformation of the country's political, economic and social systems.
• Under his leadership, a new political movement has been formed with the aim of re-establishing people's power.
2. Economic Development and Challenges
• To overcome economic crises, Anura Kumara Dissanayake is strengthening cooperation with international countries.
• He is trying to restore the country's economy by improving relations with superpowers such as the United States, India and China.
• On his first foreign trip to India, he assured that Sri Lankan soil will not be used for activities against Indian security.
3. Eradication of corruption and establishment of justice
• Anura Kumara Dissanayake strongly opposes the abuse of power.
• At the International Anti-Corruption Day event, he emphasized that no institutions or laws are of any use if those in power are not prepared to fulfill their responsibilities.
4. Foreign Relations and Modern Trends
• Anura Kumara Dissanayake focuses on maintaining balanced relations with India, China and the United States.
• He has established close relations with India and has undertaken a second visit to China. He believes that it is necessary to maintain balanced relations with both countries since it is impossible to have close relations with China without bypassing India.
5. Social Welfare and Human Rights
• Anura Kumara Dissanayake emphasizes human rights and social welfare.
• He works towards improving international cooperation in political changes, refugee asylum seekers and immigration.
Current Government Budget
• The key features of the Sri Lankan government’s Budget 2025 related to taxes and expenditures are as follows:
Tax Reforms
1) Direct Taxes
• Corporate Tax: The tax rate on tobacco, liquor and gambling has been increased from 40% to 45%.
• Capital Gains Tax: Individuals and partners have been increased to 15%, while other companies have been increased to 30%.
• Exemption: The 15% tax exemption provided for export earnings of certain services has been removed.
• Exemption: Life insurance and other earnings have been taxed.
2) Indirect Taxes
• Gross Collection Levy: The rate on gambling has been increased from 15% to 18%.
• Casino entry fee: Increased from USD 50 to USD 100 .
• Withholding Tax: Increased from 5% to 10%; special section created to provide exemption for low-income earners .
Budget Position (Revenue and Expenditure)
• Total Revenue: LKR 4,950 billion
• Total Expenditure: LKR 7,190 billion
• Budget Deficit: LKR 2,200 billion (6.7% of GDP)
• Primary Surplus: 2.3% of GDP
• Total Expenditure: 21.8% of GDP
• Total Revenue: 15.1% of GDP
Economic Objectives
• Economic Growth: 5% growth target in 2025
• IMF agreement: Under $2.9 billion financial assistance, 2.3% primary surplus in 2025
• Debt restructuring: $25 billion debt restructuring completed
• IMF agreement: Under $2.9 billion financial assistance, 2.3% primary surplus in 2025
A brief description of the main features of the Sri Lankan Budget for 2025:
Main Economic Objectives
• Total Revenue and Donations: Rs. 4,990 billion
• Total Expenditures: Rs. 7,190 billion
• Debt Interest Expenditures: Rs. 2,950 billion (8.9% of GDP)
• Budget deficit: 6.7% of GDP
• Primary surplus target: 2.3% of GDP
Tax and fiscal changes
• Corporate tax on cigarettes, liquor and gambling establishments: increased from 40% to 45%
• Removal of tax concessions on exported services: taxed at 15%
• Tax on life insurance and other income
• Increase in capital gains tax rates
• Changes in personal tax structure
Vehicle imports and taxes
• Vehicle imports resumed: Imports temporarily suspended in May 2020 resumed
• Customs duty on all vehicles: fixed at 20%
• Customs duty doubled on electric vehicles: effective from 1 February 2025
• 5.9% increase in customs duty rates: adjusted for inflation
Education and health investments
• Education allocation: Rs. 619 billion – the highest allocation in Sri Lanka’s history
• Allocation for Health: Rs. 479 billion
• Allocation for Education and Research: Rs. 285 billion
Social Welfare and Green Projects
• Allocation for Aswesuma Welfare Scheme: Rs. 232.5 billion
• Allocation for ‘Clean Sri Lanka’ Project: Rs. 5,000 million
• Allocation for Waste Disposal Facility in Anuradhapura: Rs. 750 million
Digital Transformation
• Allocation for Digital Transformation: Rs. 3 billion (US$ 10 million)
• New Digital Identity Card and Laws: Introduction of Laws for Digital Services
• Revenue Target from Digital Economy in 5 Years: US$ 15 billion
Comments from international financial institutions
• IMF: Sri Lanka lauds efforts to achieve primary surplus target (2.3% of GDP) for 2025
• Moody’s: Fiscal reform may be slow as budget deficit target (6.7% of GDP) is higher than IMF’s preferred target of 5.2%
Since taking office in September 2024, Sri Lanka’s current President Anura Kumara Dissanayake has introduced various new programs to revive the country’s economy, establish social justice, and promote modern technological development. His actions are set to usher in a new era in Sri Lanka’s history.
1) Political and Administrative Reforms
Rajya Sabha Reorganization: Efforts have been made to replace the presidential centralized system of government that emerged after 1978 and re-establish a parliamentary centralized democracy.
Parliamentary victory: In the general elections held in November 2024, the National People's Power (NPP) won 159 out of 225 seats, securing a majority.
New generation of politicians: The younger generation is participating in politics and working with innovative ideas
Women's empowerment: Laws have been brought to provide equal opportunities for women in areas including education, employment, and political participation. Women's self-help groups, financial assistance schemes, and women's safety centers have also been formed.
Rule of law and eradication of corruption: Cases against former politicians and officials have been reopened and court proceedings have been initiated.
2) Economic recovery and development plans
Cooperation with IMF: Under the $2.9 billion loan agreement, a plan has been formulated to repay all foreign loans by 2028.
Economic growth target: The aim is to increase tax collection to 15.1% of GDP, while achieving a 5% growth rate in the medium term.
Technological Development: There is a plan to generate $5 billion in revenue in the IT sector by 2029 and create 200,000 technical jobs.
Passenger Traffic: The aim is to attract 4 million passengers in the next 3-4 years and generate $8 billion in revenue.
3) Digital Transformation and Technological Advancement
Digital Sri Lanka Project: In the 2025 budget, Rs. 3 billion has been allocated for developing the digital economy.
Electronic Identity Cards: Under the "Sri Lanka Unique Identity Project", electronic identity cards will be issued to all citizens.
Cashless Economy: With the aim of creating a $15 billion digital economy by 2030, measures have been taken to promote cashless transactions.
Social Media Usage: Social media serves as a powerful medium for the rapid dissemination of political information among the people
4) Environmental Protection and Sustainable Development
Green Energy: Projects have been implemented to develop green energy sources such as solar power and wind power.
Environmental protection: Measures have been taken to protect forests, improve water resources, and reduce plastic waste.
5) International Relations and Foreign Investment
Cooperation with India: Sri Lanka has ensured that its land, sea, and airspace are used without prejudice to India's security.
Relations with China: Efforts have been made to restructure a $7 billion debt.
Relations with the United States: Steps have been taken to promote democracy, protect human rights, and enhance economic cooperation.
6) Social Welfare and Equality
Social Welfare Programs: Relief assistance to the poor, old-age pensions, and support for the disabled have been provided.
Salary Increase Program: It was announced that the minimum basic salary of government employees will be increased from Rs. 24,250 to Rs. 40,000.
Education and Health: New schools and hospitals have been established with the aim of providing quality education and health services to all.
Foreign Relations
India and the United Arab Emirates have signed an agreement to jointly develop an energy hub in the Trincomalee region.
Human Rights
In March 2025, the United Kingdom imposed travel and asset freezes on four Sri Lankan individuals for human rights violations.
The new government led by Anura Kumara Dissanayake is moving towards development and modernization in various sectors of Sri Lanka.
Political changes
Economic growth
Eradication of corruption
Foreign relations
Social welfare
Development and modernization in various sectors through new politics.........!
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