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President Ranil Wickremesinghe expressed his goal of integrating the Gen Z generation into society and empowering them to take responsibility for the country's development. He believes this will allow Sri Lanka's youth to shape the society they envision for themselves.
The President emphasized that, like in other countries, Sri Lanka's youth should be given the opportunity to influence the country's future. He acknowledged that Sri Lanka had once been ahead of many developed nations but has since fallen behind due to traditional politics and misleading slogans.
President Wickremesinghe also highlighted the importance of maintaining the economic stability achieved over the past two years. He warned that without continued efforts, the economy could collapse again. To secure the future of the country and its youth, he stated that he needs the next five years to make crucial decisions.
President Ranil Wickremesinghe addressed these points yesterday (09) during the #AskRanil youth meeting held at the Galle Face Hotel, Colombo.
In response to a question, the President clarified that reports suggesting the Cabinet has not approved the salary increase planned for 2025 are incorrect; the approval has already been granted.
Below are the questions posed by the youth and the answers provided by the President:
Your policy statement references a "Theravada Trade Economy." What exactly is meant by this term?
It’s important to clarify that this isn't a policy statement but rather a program that can be put into action immediately. Many aspects of the program can be implemented starting September 22, while others involve policies rather than specific actions.
The term "Theravada Trade Economy" refers to a mercantile system grounded in Theravada Buddhism. The teachings of the Buddha are open and trade-oriented.
Historically, trading was governed by the old caste system, but the Buddha's teachings significantly influenced and expanded trade practices globally. The Buddha's message, first introduced to Sri Lanka by the Tapassu and Bhalluka traders, has had a lasting impact on trade. Buddhism and Islam are two religions with strong ties to trade.
Rajarata evolved into a prominent trade centre. Merchants from the west, including those from Arabia, transported goods to Manthai and then brought them to Anuradhapura via the Malwathu Oya. Goods from China were similarly brought to Trincomalee and then transported to Anuradhapura. Traders often had to wait for the monsoon season to return, leading to extended stays in Anuradhapura. This suggests that tourism might have been thriving at that time, contributing to Anuradhapura’s status as a major trading kingdom. The kingdom engaged in trade conflicts with the Pallava and Chola kingdoms and even dispatched troops to Myanmar under King Parakramabahu to assert control over trade routes and maritime areas.
After the decline of the Rajarata kingdom, a similar trading power emerged in Thailand, influenced by Theravada Buddhism. Thailand adopted a more open economic model, which proved more successful than Sri Lanka’s stagnating economy. It is crucial for us to revitalize and improve our economic practices. You all should have a prosperous future.
In 2019, our Gross Domestic Product (GDP) was USD 89 billion. My goal is to increase it to between USD 350 and USD 400 billion by 2025. Even if we are no longer here, we are committed to laying the foundation for you to build a prosperous and resilient state.
What is your plan for young people as the economy grows?
My plan is to empower the Gen Z generation to take responsibility for building the future they want, by integrating them into society. They must determine the future they desire. When I was around 20, we faced issues under the leadership of Mrs. Sirimavo Bandaranaike. We worked with President J.R. Jayewardene, and when he became President, he told us to shape society the way we wanted. He opened up the economy and initiated the Mahaweli project.
Now, I ask you, as young people, what kind of society do you want 25 years from now?
By that time, most of you will be around 50 years old, and some might even have grandchildren. You need to know the kind of society you want to build. My focus is on creating a society where people can live peacefully, overcoming the crises of the past two years, and also improving the country’s economy.
We cannot always remain a poor country. In my younger days, Japan was behind us. But today, look who’s trailing us—Myanmar, Afghanistan, and Laos. If we don’t act quickly, even they will surpass us. So, there’s no point in making empty political promises. We must make decisions about the future we want, just like other nations that have rebuilt themselves. We are in this situation because of past lies. If we had told the truth, stopped giving everything for free, and not borrowed for everything, we wouldn’t be in this position.
Now, this generation has been burdened with repaying debts they didn’t incur. Therefore, we must set the path to build a better society, one that avoids such crises in the future. It is your responsibility to carry this forward.
Election monitoring organizations have reported that the cabinet has not approved an increase in government employees' salaries. Is this true?
It should be noted that the cabinet has indeed made a decision regarding salary increases. The role of election observers in this matter is unclear, and questions may arise about whether their involvement is independent or politically motivated. The decision to raise salaries was made some time ago in response to various requests. To address this, Udaya R. Seneviratne was appointed to lead a committee, and we are now implementing the committee's recommendations.
In 2022, financial constraints limited expenditures, and our GDP fell to USD 76 billion. However, it is expected to rise to USD 84 billion in 2023. With the funds received, including support from the World Bank, our priority was to provide “Aswesuma” to low-income earners. Our GDP has continued to improve this year, leading to an initial allowance of Rs.5, 000 for government employees in January. By March, we observed that the economy was performing better than anticipated, allowing us to increase the allowance to Rs.10, 000. By 2025, we anticipate having sufficient funds to fully implement the recommendations from Udaya R. Seneviratne’s report.
We need to provide relief to government employees as well. In 2022, the value of the dollar increased from Rs. 185 to Rs. 370, effectively doubling and resulting in a 100% rise in the cost of goods. Unfortunately, we were unable to raise wages due to a lack of funds, exacerbating their financial strain. We are now working on arrangements to offer them relief through allowances, and we plan to continue this support for another year.
We are facing a challenging situation where rising commodity prices are straining everyone's finances. The International Monetary Fund (IMF) has suggested that these measures should be implemented by 2027, but I told that must be done by 2025/26.
Mr. President, your policy statement mentioned a 4,000-acre investment zone in Hambantota. Similar proposals were made during the previous Rajapaksa administration. Could you elaborate on this?
We have the opportunity to bring modern industries into Sri Lanka by creating well-equipped investment zones. My aim is to establish large-scale investment zones. Initially, we started with the Katunayake and Biyagama zones, each covering around 400 acres. Now, we are planning much larger zones. The first new investment zone will be launched in Bingiriya, spanning 1,000 acres. We plan to establish such zones across the country.
You can get involved in any of these locations. In Jaffna, we are in the process of allocating 1,000 acres, and there are also 1,000 acres available in the Kappalthure area of Trincomalee, which can be expanded if needed. In Hambantota, we already have a Harbour and an airport, so we need to take advantage of these facilities. The harbour should serve both imports and exports, and for this, 4,000 acres have been allocated. This land will also be used to develop a small city with residential facilities for people working in the investment zone.
Additionally, we plan to set aside about 10,000 acres from the Hambantota and Monaragala areas. This will bring significant industrial economic growth to Hambantota, and we hope to begin the development of an industrial city next year. This will create a new economic foundation for the region. We also have plans to train the workforce required for these industries in the future. The development plans for Trincomalee and Hambantota have been designed with the assistance of Singapore’s Surbana Jurong Company.
As Gen Z, why should we choose you as the next President?
Please share your reasoning.
Over the past two years, you’ve made significant strides in stabilizing the country’s economy. I believe you have the ability to lead the country to where we aspire it to be. I would love to hear your thoughts on this.
I have taken charge of this country and stabilized the daily lives of the people. There are still issues like rising prices, but economic stability must be ensured. Without it, the economy will collapse, and we’ll return to the same situation as before. Securing stability is crucial to your future, which is why the next five years are essential. But stability alone is not enough—how will we generate the foreign exchange we need? Our income is insufficient to cover our imports, and export revenue is inadequate. Only by expanding our export economy can we build a resilient financial system. Otherwise, in 15 years, we could face a collapse even more severe than Argentina’s.
The other parties say they’ll reduce taxes, and I’d love to say the same. But how can we reduce taxes when our income is insufficient? The International Monetary Fund (IMF) has clearly stated that our economy cannot sustain further debt. Taking on more debt will lead to economic collapse. That’s why we’ve been advised not to borrow more, but for a while longer, we may have to take on some debt.
We’ve agreed that any borrowing to cover the budget deficit should not exceed 5% of the GDP. We need to structure our budget accordingly, ensuring a primary surplus. If we don’t, we’ll face more problems. We can’t borrow from banks or print money either. The only way to strengthen the rupee is to follow this path. Unlike others who promise reduced taxes and increased spending, we must remain realistic.
For the 2025 budget, we are working within the limits set for us. The total expenditure for 2025 is estimated to be Rs. 6,898 billion, while our revenue is projected at Rs. 5,100 billion. This leaves a gap of Rs. 1,700 billion. With a primary surplus of Rs. 781 billion, we can stabilize the rupee. With this, our primary surplus will amount to Rs. 781 billion, and once we reach the 5% (5.2%) mark, the rupee will stabilize."
Now, let’s consider the proposals by the National People’s Power (NPP- Malima). Their expenditure plan exceeds Rs. 8,900 billion, with a revenue projection of Rs. 4,900 billion—Rs. 2,000 billion less than our plan. This creates a budget deficit of Rs. 4,000 billion, which equals 11.9% of the GDP. The difference is stark. While we aim for a primary surplus of 2.3%, they propose a deficit of 4.3%. This will push the country toward collapse again. If we go to the markets without sufficient funds, interest rates will soar to 25%. If we proceed this way, the IMF will withhold the next tranche, leading to another economic crash. The dollar could rise to Rs. 400, and if the IMF cuts us off, the exchange rate could reach Rs. 500. Is this the path we want to take?
People criticize me for not taking shortcuts, but if I do, I would be betraying your future. It’s a difficult path, but we must move forward. In one or two years, the situation will improve. The “Puluwan Sri Lanka” plan is already in place, and we can implement it by September 22. Others promise a rich nation with beautiful lives, but only by following this path can we achieve that.
Your policy statement mentions expanding the digital economy from USD 5 billion to USD 15 billion. How do you plan to achieve this?
I firmly believe it’s achievable. The public sector will continue to gain experience in digitalization, and we aim to expand this to USD 15 billion. We are also fostering entrepreneurship in this space and attracting foreign investors to support this growth. The rest will need to be driven by the industry itself.
Will there be more opportunities for women’s representation in the next parliamentary election?
We are urging political parties to nominate more women. Although the Women’s Empowerment Act has already been passed, the commission has not yet been appointed. It will be formed by the legislature. The Ministry of Women’s Affairs is planning to request more female representation in nominations. We’re also working on ensuring representation in Janasabha, Pradeshiya sabha and provincial councils. As for Parliament, discussions are still on-going about the proportion of women in the new electoral system. If we move to a mixed system, there could be provisions for a percentage of MPs to be women. Parties could also be asked to ensure 10-20% of their candidates are women.
Your policy statement mentions providing 100,000 jobs for the youth. There is also a large number of unemployed graduates in arts-related fields. Is there a solution for them?
Our focus is on modernizing agriculture, setting up factories, and reviving the tourism industry to create more jobs. We’ve created opportunities for investors to expand businesses, and existing businesses also need room to grow. Youth haven’t found jobs in the past four years, and until new investments are realized, we need to offer some relief. This is why we’re focused on providing government jobs, private sector employment, and self-employment opportunities. For private sector jobs, we’ll subsidize wages for the first year. For self-employment, we’ll provide loans and support for about a year. We are also enhancing qualifications in English and IT for arts graduates to improve their employability, thus reducing unemployment.
Does your program include a plan for young people to integrate with agriculture through technology?
Yes. Under the agricultural modernization program, we are converting existing agricultural service centres into agri-innovation hubs. This will be a joint effort between the government and the private sector. Private companies need to be involved in both the production and marketing of crops. Cold storage facilities are also crucial. We are already in discussions with private companies to implement this. For rice farming, we need to achieve a yield of 8 metric tons per hectare. Once we reach that target, we’ll be able to meet the entire country’s rice demand from the dry zone, allowing us to allocate the wet zone to other crops.
Even though the economy is stable now, the cost of living including the prices of essentials are expensive. Do you think you can reduce the prices and increase the purchasing power, Sajith and AKD say that they will reduce the cost of food and fuel? What will you do?
The economy depurated from about Rs.185 a dollar to Rs.370 and we were in danger in going to about Rs.400 a dollar. As a result I immediately stabilized the currency. But we stabilized it at Rs.300. But our wages still have been on the basis that Rs.185 for a dollar. So what we have done is both to increase the income and also to reduce the make it the goods more affordable by strengthening the rupee. There still a gap and that’s what we have to bridge next year.
