A Strong Economy is Indispensable for Safeguarding National Security

Youth unemployment rate was 22.33% in 2024, a slight decline from 2023, but still alarmingly high

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The current attitude towards entrepreneurship discourages innovation and risk-taking, largely due to systemic hindrances and a lack of a comprehensive ecosystem

The Effect of Increased Taxation and Rising Electricity Costs

The current economic policies, regarding taxation and essential services, actively work against the establishment of a thriving entrepreneurial ecosystem and the broader business community. The recent significant increases in electricity tariffs, for instance, have placed immense pressure on businesses, particularly the industrial and hotel sectors. As noted by the Ceylon Electricity Board (CEB) Chairman himself, a 15% hike has a disproportionate impact on large and mediumscale enterprises, significantly increasing their production costs. When input costs rise sharply, businesses face an agonising dilemma: absorb the costs and erode profit margins, or pass them on to consumers. Given the already diminished purchasing power of the majority of the local population, increasing prices further is often not a viable option for local sales. This leaves businesses struggling to compete both domestically and internationally, as their products become uncompetitive. The "distorted tariffs" and "cross-subsidies" within the electricity pricing structure, as critiqued by the Advocata Institute, further exacerbate this problem, misallocating capital and disincentivising innovation.

Furthermore, the government's drive to increase revenue through higher taxation on the business community, while understandable given the need to service state expenses and maintain a large public sector, risks becoming counterproductive.