the central bank. external sector stability supports the enhancement of market sentiments. on the fiscal front, positive impacts of fiscal policy reforms are becoming evident in the government's finances, marked by a significant increase in tax revenue collection, while the implementation of cost reflective pricing mechanisms has helped improve the financial performance of state - owned business enterprises. the government's steadfast commitment to a revenue based fiscal consolidation path, in conjunction with the continued execution of the economic reform programme aligned with the imf - eff arrangement, is expected to continue. since most of the tax policy reforms are frontloaded in this reform process, the revenue enhancement in the forthcoming period would be more focused on improving tax administration and widening the tax net rather than increasing taxes. key pieces of legislations related to public financial management, public debt management, and anti - corruption have been enacted recently, which are pivotal to strengthen prudent management of public finance and debt, transparency and accountability. in addition, reforms in state - owned business enterprises ( sobes ) and divestment of non - strategic investments would reduce the burden of sobes on the government budget. alongside the successful external debt restructuring process, these measures are expected to facilitate the achievement of mediumterm fiscal targets and ultimately restoring long term fiscal sustainability which is prerequisite for medium term growth. enhanced fiscal discipline along with the 2 / 5 bis - central bankers'speeches improved financial performance of the key state - owned enterprises ( soes ) would help to free up more funds available in the banking system towards productive purposes of the private sector. the financial sector, which endured difficult macroeconomic conditions in recent years, remained resilient amidst the crisis owing to proactive and prudent regulatory actions of the central bank and the compliance and crisis preparedness of the financial institutions. central bank provided regulatory guidance to the banks and non - bank financial institutions during the crisis time to ensure their resilience with adequate capital and liquidity. an asset quality review was conducted as part of the bank diagnostic exercise and the central bank developed a roadmap to address issues related to capital and foreign currency shortfalls based on the aqr, expected impact of debt restructuring and forward - looking stress testing. on that basis we expect the financial sector's resilience to improve further as macroeconomic vulnerabilities dissipate in the upcoming period. also, an array of structural, legal, and policy level reforms and innovations will continue to be mobilised to ensure the stability

sector and innovators to access the financial markets at competitive rates to expand their businesses. apart from the current reform agenda, sri lanka needs to embrace digital transformation through initiatives to foster a knowledge - based economy. expanding digital services, including banking, payments, and e - government, will boost efficiency, productivity, and financial inclusion. this transformation will also streamline government operations, reduce corruption, and improve transparency and accountability, addressing issues like tax evasion, the large and vulnerable informal economy, and growing inequalities. further, improved access to digital technologies and data will drive innovation, attract foreign investment, and strengthen global competitiveness of our businesses. for this transformation to succeed, a supportive regulatory environment and active participation from the private sector are essential in bridging the digital divide and fostering long term economic development. the sustainable development goals ( sdgs ) are integral to sri lanka's sustained growth in the long term, by addressing critical issues in key sectors such as health, education, poverty reduction, and infrastructure development. sri lanka's progress under specific sdgs is commendable, with achievements such as reduced maternal mortality, high literacy rates, and strengthened social safety nets. however, to ensure continued progress and avoid any reversals of these gains, sri lanka should focus on reinforcing development strategies that emphasise social protection networks, food security, and health and education reforms. aligning these efforts with international frameworks and addressing regional disparities will be essential for achieving resilient, long term economic stability and growth. i wish to take this opportunity to emphasise the need for fostering as i already mentioned the transition of sri lanka's economy towards a green economy, as highlighted in international agreements. given the country's environmental vulnerabilities as an island nation and escalating global challenges, advancing green initiatives is essential. greening the industrial activities would be imperative, going forward, especially for our export sector, as there is a growing recognition for sustainable production by the importing countries. sri lanka is making progress through efforts to achieve 70 per cent of electricity from renewable sources, promote green financing aligned with the central bank's sustainable finance roadmap, and implement conservation programmes with local and international partners. supporting the development of environmentally sustainable businesses, advancing clean technologies, and expanding access to green financing are crucial strategies for fostering an economy that is resilient, resource efficient, and sustainable. conclusion sri lanka has rebounded faster than expected from the