Labour and Foreign Employment Minister Manusha Nanayakkara emphasized that retaining land, a crucial factor of production, improperly under government control contradicts the constitution. He highlighted that President Ranil Wickremesinghe has rectified this issue through the 2024 Budget proposals. During a press briefing convened yesterday at the Presidential Media Centre (PMC), under the theme ‘One Way to a Stable Country’, Minister Manusha Nanayakkara expressed that providing free land ownership empowers individuals to participate in independent economic processes, making it a democratic investment for the future economy.
Minister Nanayakkara further addressed the economic challenges faced by the country, citing a significant loss of state revenue due to the the tax revision implemented in November 2019, a substantial amount of money was lost in state revenue, causing a decline in government revenue as a percentage of the gross domestic product to 8.5%. This amounted to approximately Rs. 600-700 billion. Compounded by the impact of the Covid-19 pandemic, inflation began to surge in the last quarter of 2021, reaching a staggering 73.70% by the end of 2022. Consequently, Sri Lanka found itself with the highest inflation rate globally. Despite the Government’s invitation to opposition parties to assume control of the country, none of the current critics stepped forward to take on this responsibility. The present President, Ranil Wickremesinghe, courageously accepted this significant challenge. He approached decision-making with utmost care, ultimately steering the country towards a relatively stable state.
In our capacity as a government, we introduced the 2023 budget with the primary objective of averting the country from entering a hyperinflationary situation. To achieve this goal, we implemented rigorous financial control measures. As a result of these efforts, we successfully reduced inflation to 0.80% by September 2023. We are advancing as a social market economy with a comprehensive social security system. In alignment with this vision, this year’s budget has earmarked Rs. 183 billion for social security, which is three times the allocation in previous years. This substantial investment is expected to benefit twenty lakh families, providing a robust foundation for social welfare and economic stability. Government employee salaries amount to Rs. 83 billion each month, with an additional Rs. 30 billion monthly allocated for Aswesuma and pensions. A substantial portion, totalling Rs. 220 billion, is dedicated to loan interest payments. In contrast, the monthly tax income stands at Rs. 215 billion, resulting in a deficit of Rs. 168 billion. Managing the economy under such challenging circumstances is indeed a formidable task. Despite these fiscal constraints, the government has taken steps to address the situation, including the implementation of a salary increase of Rs. 10,000.
Furthermore, substantial efforts have been made to ensure a robust economic future. The commendable ‘Garu Saru – Shramayata Abhimanak’ program, along with the new Employment Security Act, has significantly benefited expatriate workers.
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