President AKD defends economic recovery

Tells Parliament economy is on stable and strengthened path Notes US tariff was not Govt’s failure, negotiations ongoing Says 1H export earnings highest in a decade, tourism revenue has increased by 10% YoY Points to FDI doubling to $ 507 m in 1H and expects to reach $ 1 b by year-end Asserts 2025 will see highest export revenue, foreign workers’ remittances inflow and most number of tourist arrivals States foreign reserves to reach $ 7 b by year-end Rejects speculation of potential suspension or additional taxation on vehicle imports Discloses LCs totalling $ 1.27 b already opened, expects to rise to $ 1.5-1.8 b by end 2025 Says revenue collection has exceeded expectations; with IRD surpassing July target by 101%, Customs by 115% Assures all district development funds allocated in 2025 Budget would be disbursed in full

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PRESIDENT Anura Kumara Disanayake forcefully defended Sri Lanka’s economic recovery in Parliament yesterday following months of difficult reforms, and warned that political conspiracies to trigger instability would be firmly resisted.

Addressing an adjournment debate on the economy, Disanayake said the Government had restored macroeconomic stability, secured international financing, revived exports, and reopened vehicle imports.

"The economy is now on a stable and strengthened path as a result of the immense sacrifices made over the past year," he stressed.

The President cautioned political opponents against seeking advantage through economic disruption. "Some are dreaming of a collapse. That collapse will not happen. Do not even think of conspiring to destabilise this country," he warned.

Disanayake addressed concerns over the 44% retaliatory tariff imposed by the US on Sri Lankan exports in April.

He explained that the tariff was based on the US formula of applying duties equal to half the bilateral trade deficit, in this case, 88%. "This was not a failure of our Government," he said, "but a result of the mechanism the US uses in applying such tariffs." The President said that after difficult negotiations, the Government succeeded in reducing the tariff to 20%. "We achieved a significant outcome through a competent negotiating team and continuous dialogue. There was no media show only serious work," he said. He confirmed that discussions with the US are ongoing and that no final agreement has been signed.