📈 Treasury Secretary: SL Targets 7% GDP Growth via Six-Pillar Strategy & Digital Reform

• The economy has transitioned from crisis to stability, setting a medium-term goal of over 7% GDP growth through consistent policy action. The 2026 Budget emphasizes governance, fiscal discipline, and transparency to restore investor confidence. • Six Key Strategies: The Government's medium-term vision is driven by: inclusive growth, export diversification, sustainability in policy, production economy, rural development, and digital transformation. • Market confidence is deemed strong, evidenced by strengthened reserves (even after reopening vehicle imports) and the Colombo Stock Exchange (CSE) reaching record highs. Debt sustainability is reaffirmed, with foreign debt repayments continuing smoothly since 2024. • Key Reforms: • Governance reforms include the appointment of independent directors to SOE banks and the forthcoming SOE Holding Company Law. • Digitisation is fast-tracked via the Electronic National ID (eNIC) and National Single Window system. A three-stage digital invoicing system for tax reporting begins with exporters by end-2025. • A $5 million Digital Innovation Fund is allocated to accelerate investments in tech startups. • VAT threshold was reduced to widen the tax base and formalize informal businesses, while tax consistency for investors remains central to policy. • Investment attention is focused on roads, ports, and domestic airports expansion to support the tourism sector's growth. The Government is also actively reviewing existing and exploring new Free Trade Agreements (FTAs).