He made this observation presenting the mid-term Economic Policy Framework of the Government.

The Prime Minister said the Finance Ministry will focus on increasing state income and planning and management of all recurrent and capital expenditure. The government will strive to make a genuine effort in reducing the burden of loans while sustaining financial stability, he said.

He further said priority will be given to enable an increase in earnings. This would be done through a policy of minimizing regressive taxes, , increase the ratio of direct and indirect income tax generation in the medium term from 80%: 20% to 60%: 40%, strengthening the tax management processes while removing tax holidays and benefits, he stated.

The Prime Minister also said removal of the once –and- for -all taxation process, which paved way for greater debate, removal of taxation that is based on past earnings, is considered an impediment for business growth.

The government also plans to provide tax free concessions for all earnings outside Sri Lanka for Sri Lankans and only ensure taxes are for income earned within the country, he said.

Prime Minister Wickremasinghe further pointed out that action will be taken to enhance the allocations made for education and health, while taking into consideration the priorities for the state and placing all common expenditure under closer scrutiny.

"Taking all of this into consideration, it must be stated that for the sake of future generations and in pursuit of reality, we must have the strength to take the right decisions. Now these may not be popular and may offer a bitter pill to swallow. But we need to take bitter medicine to cure our sick systems and ourselves", the Prime Minister reiterated.