Fiscal and Redistributive Reform
The Sri Lankan government’s treasury is currently facing a significant burden due to high interest costs on Treasury Bonds, which is severely constraining the fiscal space available for critical social protection programs.
There is a valuable opportunity to alleviate this pressure by reducing the interest paid on bonds held outside the public’s EPF and ETF. Implementing such a measure could result in substantial savings of approximately Rs. 600 billion, which could be redirected to support essential public services and social welfare initiatives.
