Climate Prosperity Plan aimed at sustaining growth -Minister Semasinghe
State Minister of Finance Shehan Semasinghe says that the Climate Prosperity Plan, which was launched by President Ranil Wickremesinghe in November 2022, is aimed at sustaining growth despite increasing climate instability in the country. He said this while participating in the Economic and Social Commission for Asia and the Pacific (ESCAP) forum in Thailand.
The Commission promotes cooperation among its 53 member States and 9 Associate members in pursuit of solutions to sustainable development challenges. He also said that Sri Lanka is aiming for 70% electricity generation from renewable energy by 2030.
“Sri Lanka has been one of the countries to collect the least amount of tax revenues in the world, which the Government recognizes as unsustainable moving forward. The Government has raised taxes in order to provide more balance and stability to the economy. “To protect the most vulnerable, the Government has introduced a special Social Security Contribution at the rate of 2.5%. This contribution will allow the Government to increase revenues from high-income citizens and invest in social projects for the most vulnerable. The Government’s social security priorities are health and education.
“The IMF program will mean not only external funding; it also shows that Sri Lanka is getting its house in order, and that we can attract foreign investment, tourism and talent back to the country. We have engaged continuously and transparently with all our creditors from the very beginning, and we are very grateful to all the bilateral creditors, the Paris Club including Japan, India and China, for their cooperation and for delivering financing assurances.”
“We have undertaken an ambitious and systemic reform agenda and have made the difficult yet necessary decisions required to navigate Sri Lanka out of its worst economic crisis since independence. This ambitious reform agenda is now bearing fruit. We will increase investment in key sectors to stimulate economic growth and support the country’s recovery. Sri Lanka will once again be an international destination for investment and business,” he noted.
“We have built on lessons learned from the crisis to develop the foundations of a stable and prosperous Sri Lanka. The focus of the Government has always been, and continues to be, the welfare of the people of Sri Lanka.Our ambitious reforms reflect this commitment. Our reforms will ensure citizens have access to critical public services and will widen and reinforce the social safety nets needed to support the most vulnerable in society.”