• The Government has gazetted the Economic Transformation Bill which sets ambitious targets for the country’s economy for the next two and a half decades.
• The Bill provides for a National Policy on Economic Transformation and for the establishment of the Economic Commission, Investment Zones Sri Lanka, Office for International Trade, National Productivity Commission, and Sri Lanka Institute of Economics and International Trade.

The Government has gazetted the Economic Transformation Bill, setting ambitious targets for the country's economy over the next two and a half decades. Gazetted by the office of President Ranil Wickremesinghe in his role as Minister of Finance, Economic Stabilisation, and National Policies, the Bill received Cabinet approval earlier this month for presentation to Parliament. It aims to establish a National Policy on Economic Transformation and various institutions, including the Economic Commission, Investment Zones Sri Lanka, the Office for International Trade, the National Productivity Commission, and the Sri Lanka Institute of Economics and International Trade. The Bill will replace the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978, with the new Economic Commission of Sri Lanka and includes provisions for restructuring government debt. Key objectives include maintaining the Public Debt to GDP ratio below 95% by 2032, keeping the central government Annual Gross Financing needs to GDP ratio below 13% by 2032, and reducing the central government Annual Debt Service in foreign currency to GDP ratio below 4.5% by 2027.

The Bill envisions transforming Sri Lanka into a highly competitive, export-oriented, digital economy, achieving Net Zero by 2050, and increasing global economic integration. It also aims for stable macroeconomic balances, sustainable debt, modernized agriculture to enhance productivity and exports, and inclusive economic growth. Targets include annual GDP growth of 5% by 2027 and higher thereafter, maintaining unemployment below 5% from 2025, and increasing female labor force participation to 40% by 2030 and 50% by 2040. The Economic Commission will focus on creating a favorable investment climate, promoting sustainable foreign direct investment, and boosting exports and employment. It will evaluate and manage Investment Zones, enhance the ease of doing business, and identify strategic investments that bring significant foreign exchange, export growth, and large-scale employment, benefiting overall economic development.

Govt. gazettes Economic Transformation Bill | Daily FT