What are the key economic recovery strategies in Sri Lanka's 2025 budget?

Sri Lanka's economic recovery is built on revenue-based fiscal consolidation, addressing the country's previously low tax revenue of 7.3% of GDP in 2022. The 2025 budget includes liberalization of vehicle imports, expected to significantly boost state income and help meet the IMF's 15% GDP target. The plan also features a 65% increase in minimum wage for state sector employees to 40,000 rupees monthly, aimed at reducing poverty. The strategy has improved foreign exchange reserves to $6 billion, providing four months of import coverage, while maintaining careful monitoring to ensure external sector stability.