Press briefing of Cabinet Decision taken on 2022-01-03

Economy 2022 and the Way forward

- Subsequent to the passage of the Budget - 2022 in Parliament, the implementation of the same has been commenced from 01st of January 2022. The following information pertaining to the External Outlook of the Sri Lankan Economy was brought to notice of the Cabinet by the Minister of Finance with a view to achieving the desired objectives of the Budget.

• Information on estimated foreign exchange that will flow out of the country in the year 2022, including foreign debt servicing payments and expected import costs of goods and services.

• the expected foreign exchange inflows in the year 2022, including export earnings, earnings from tourism industry, remittances by migrant workers, and foreign direct investments.

• Proposed short term- and medium-term measures to cover the expected foreign exchange deficit.

• The following reliefs proposed to minimize the economic hardships faced by the people due to the increase in prices of goods and services under the prevailing economic situation.

(i) Granting a monthly allowance of Rs. 5000 for the Public Servants and pensioners from January.

(ii) Taking action to provide the above concession to private sector employees as well in consultation with private sector employers.

(iii) providing an additional allowance of Rs. 1,000 / - to the Samurdhi beneficiaries entitled the monthly allowance of Rs. 3,500/- and giving the same allowance to other Samurdhi beneficiaries as well.

(iv) payment of an additional amount of Rs. 25/- per 1kg of paddy in addition to the guaranteed price of Rs.50/- currently being paid per 1kg of paddy, in case of any reduction in the paddy harvest in the upcoming season.

(v) bearing the additional amount so paid by the Government so as not affecting the price of rice in the market.

(vi) Implementing a home gardening programme to encourage the cultivation of vegetables and fruits required for their self consumption and providing an incentive allowance up to a maximum of Rs. 10,000/- depending on the size of the land not more than one acre for inputs such as preparing the land, obtaining seeds etc.

(vii) Providing 15kg of wheat flour at a concessionary price of Rs. 80/- per kilogram to a estate sector employee's family.

(viii) fully exempting the all essential food and medicine from tax, taking action to protect local farmers and producers whenever necessary.

The Cabinet decided to grant its concurrence for the implementation of the arrangement including the above proposals submitted by the Minister of Finance.