President Ranil Wickremesinghe presented the much-anticipated 2024 Budget to Parliament on Monday (13), outlining a series of transformative measures aimed at uplifting various sectors of Sri Lanka’s economy and society.
Key Takeaways from the 2024 Budget:
- Public Sector Salaries: The Cost-of-Living Allowance will surge from Rs. 7,800 to Rs. 17,800, a significant increase of Rs. 10,000 effective January 2024. This boost will be integrated into monthly salaries starting in April, with the accumulated balance from January to March disbursed in installments over 6 months beginning October 2024.
- Public Pensions: Public pensioners will witness a monthly Cost of Living Allowance increase from Rs. 6,025 to Rs. 8,525. Additionally, a Distress Loan Facility for all public servants will be implemented from January 01, 2024.
- Small & Medium Enterprises (SMEs): A Rs. 30 billion concessionary loan scheme, supported by the Asian Development Bank, aims to fortify and stimulate SMEs.
- Urban Home Ownership: Low-income families residing in urban development program houses will no longer pay rent. Full ownership of these homes will be granted to eligible families.
- Estate Housing: The government allocates Rs. 4 billion to grant land ownership and construct houses for those in the estate sector.
- Education Reforms: Initiatives include the establishment of key institutions like the Higher National Council on Education, the National Higher Education Commission, and the National Skills Commission. Four new universities, including Seethawaka Science and Technology University, Kurunegala Technology University, Management and Technology University, and International University of Climate Change, are set to be established. Existing private higher education institutions will undergo conversion.
- English for All: A 10-year program with a Rs. 500 million allocation aims to achieve English literacy for all by 2034.
- Health Sector: Focus on drug procurement guidelines and expedited promotion schemes for medical officers.
- Construction Sector Support: Construction companies can construct buildings on government lands, with institutions paying rent until the construction cost is recovered, after which ownership transfers to the government.
- Logistics: Colombo Port for South West India and Trincomalee Port for South East India supply needs.
- Jaffna Water Issue: Implementation of the ‘Pali Aru Water Project’ to address water concerns in Jaffna, with Rs. 250 million allocated for preliminary activities in 2024.
- Cricket Development: Rs. 1.5 billion budget allocation for school cricket development and provincial-level facilities.
- Hingurakgoda International Airport: Rs. 2 billion allocations in 2024 for preliminary activities related to construction.
- Central Expressway: Second phase from Kadawatha to Mirigama, jointly with China, and seeking Japan’s support for the section from Kurunegala to Galagedara after debt restructuring.
- Debt Restructuring: Rs. 3,000 billion allocated for foreign debt restructuring and settlement of International Sovereign Bonds.
- Borrowing Limit Increase: The borrowing limit was raised from Rs. 3,900 billion to Rs. 7,350 billion.
- Financial Sector Stabilization: 20% of shares of two state-owned banks to be given to strategic investors or the public.
- Investment Reforms: A new joint investment law establishing a National Economic Commission and new investment zones in Hambantota, Jaffna, Trincomalee, Bingiriya, and Kandy.
- Digital Economy: Rs. 3 billion allocated to establish a National Center for Artificial Intelligence.
- National Research Policy: Proposal to allocate Rs. 8 billion to formulate a national research policy for research in Sri Lanka.
President Wickremesinghe’s budget reflects a comprehensive and ambitious roadmap for Sri Lanka’s progress, emphasizing economic growth, social development, and innovation.
