State Minister for Finance, Shehan Semasinghe, emphasized that the sustained single-digit inflation has significantly contributed to fostering business confidence within the country.
During a press conference at the Presidential Media Centre (PMC) themed ‘Collective Path to a Stable Country,’ held today (01) the State Minister disclosed that the state revenue accounted for 11.2% of the Gross Domestic Product (GDP) in 2023, with projections indicating an anticipated increase to 15% by the year 2026.
In his remarks, State Minister for Finance, Shehan Semasinghe, provided insights into the economic landscape, stating that the country is poised to achieve a 1.7% economic growth in the third quarter of 2023.
He highlighted the notable recovery, noting that the overall economic growth for the year 2023 is anticipated to be approximately -3%, a marked improvement from the -11% recorded in 2022. The balance of the primary account, which was negative at Rs. 895 billion in 2022, has now turned positive, standing at Rs. 333 billion as of November 2023.
Furthermore, State Minister Semasinghe informed that, with the receipt of the second tranche from the International Monetary Fund (IMF), foreign reserves projected to surpass US dollars 4 billion.
This includes contributions of US dollars 337 million from the IMF, US dollars 220 million from the Asian Development Bank (ADB) and US dollars 250 million from the World Bank (WB).
The successful maintenance of inflation within single digits has been pivotal in fostering business confidence, especially considering the significant reduction from 70% in 2022 to an anticipated 5% in 2024.
This achievement stands as a cornerstone for building trust in the country’s business environment.
In terms of state income, it is anticipated to reach RS.3110 billion in 2023, surpassing the revised estimate of 2850 billion. This would represent a state income of 11.2% compared to GDP. Ambitiously, there are plans to propel this figure to a 15% growth by 2026.