Speech by H. E. the Prime Minister, Kay Rala Xanana Gusmão
GMN Multipurpose Hall, Dili, Timor-Leste, 14 May 2026
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On May 12th, 2026, Minister of Trade and Industry Nino Pereira addressed the opening plenary session of the 2026 ADB-World Bank Trade Forum at the Kempinski Hotel in Bangkok, Thailand.

The forum, organised by the Asian Development Bank and the World Bank, in collaboration with IMD Business School and the Paris School of Economics, was held under the theme “Trade Policy in a Fragmented World: Accessions, Industrial Policy, and the New Multilateralism.”
In his remarks, the Minister noted that the current global trade environment remains marked by political uncertainty, industrial policy measures, and geopolitical tensions. In this context, he emphasised the importance of cooperation, predictability, and a rules-based multilateral trading system.
Nino Pereira also highlighted Timor-Leste’s accession to the World Trade Organisation in 2024 and its admission as a full member of the Association of Southeast Asia in 2025 as key milestones in the country’s regional and global economic integration.
The Minister reaffirmed the Government’s commitment to aligning national policies and legal frameworks with regional commitments and to promoting economic diversification, trade facilitation, regulatory coherence, institutional capacity building, and inclusive economic growth.
In closing, Nino Pereira reiterated Timor-Leste’s willingness to strengthen cooperation with international partners, including the Asian Development Bank and the World Bank, to support a more inclusive, resilient, and sustainable regional and global trading system.
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Press Release
Meeting of the Council of Ministers on May 13th, 2026
The Council of Ministers met at the Government Palace in Dili and approved the draft Law Proposal presented by Finance Minister Santina José Rodrigues F. Viegas Cardoso for the first amendment to Law No. 8/2025 of November 27th, regarding the General State Budget for 2026 (2026 GSB).
The proposal calls for an adjustment to the 2026 GSB to address the rise in international fuel prices linked to the conflict in the Middle East, the costs associated with Timor-Leste’s assumption of the Pro Tempore Presidency of the Community of Portuguese-Speaking Countries (CPLP – acronym in Portuguese) following the approval of the 2026 GSB, and expenses related to the Oe-Cússe Special Administrative Region.
Under this amendment, the consolidated amount of the 2026 GSB increases by approximately US$101.1 million, reaching approximately US$2.39 billion. This increase does not result from any increase in transfers from the Petroleum Fund, but rather from the realignment of the government’s financing sources, using management balances, available balances in non-operating bank accounts, and increased domestic revenues.
The proposed amending budget also aims to mitigate the economic impact of rising international fuel prices, given the country’s heavy reliance on imports—particularly fuel and food—which directly affects transport costs and domestic inflation.
According to projections by the Ministry of Finance, average annual inflation in 2026 is expected to rise to 2.2%, up from 1.2% in 2025, despite international fuel price increases, without a significant worsening, due to the measures adopted by the Government to stabilise fuel prices.
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Following proposals presented by the Minister of Foreign Affairs and Cooperation, Bendito dos Santos Freitas, the Council of Ministers authorised the conclusion of financing agreements between the Democratic Republic of Timor-Leste and the European Union for the initiatives “Creation and Development of Sustainable Businesses and the Circular Economy (CRESCE)” and “E-Governance for the Judicial System in Timor-Leste (e-JUS TL)”.
The CRESCE programme, funded with three million euros (approximately US$3.5 million), aims to support the creation and development of sustainable businesses and circular-economy initiatives in Timor-Leste, promoting economic diversification, job creation, and environmentally sustainable production and consumption models. The Council of Ministers has designated the Vice Prime Minister and Coordinating Minister of Economic Affairs to sign the agreement on the Government’s behalf.
The e-JUS TL initiative, funded with six million euros (approximately US$7 million), aims to strengthen e-governance within the national judicial system to improve access to justice, increase the efficiency and accessibility of judicial services, and bolster public confidence in judicial institutions through digital transformation and e-governance tools. Under this agreement, the Minister of Justice was designated as the Government’s representative for signing the financing instrument.
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Lastly, the Council of Ministers approved the draft Government Resolution on measures to strengthen public safety and prevent violence. This decision follows recent weeks’ incidents of violence across the country, involving groups of young people and causing serious consequences for citizens’ physical safety, private property, and the stability of affected communities. These incidents took on particular gravity on May 10th in Mehara, Tutuala Administrative Post, Lautém Municipality, where a confrontation involving a group of young people may have resulted in the death of a citizen.
The Government unequivocally and vehemently condemns all acts of violence and property destruction that have resulted in the loss of human life, physical harm to citizens, or damage to private property, regardless of who committed them or their motives.
Among the measures approved, the Government reiterates the temporary suspension, throughout the country, of group activities involving the teaching, learning, and practice of martial and ritual arts, as well as the closure of venues used for such activities. This measure is exceptional, proportionate, and preventive, aimed at preventing the exploitation of these activities as a context for organising violent acts.
The Government Resolution also calls for the Timor-Leste National Police to step up patrols throughout the country, particularly in areas and at times when there are large gatherings of young people or a history of violence. It also calls for the cooperation of community leaders, specifically Village Chiefs and Hamlet Chiefs, in reporting situations covered by the suspension of activities related to martial arts and ritual arts. Municipal authorities, the Special Administrative Region of Oe-Cússe Ambeno, and the Administrative Authority of Ataúro must ensure the immediate communication of this information to the competent police authorities. The Resolution further mandates that police authorities continue and expedite ongoing investigations into incidents of violence that have already occurred, and that the perpetrators be held accountable in accordance with the law. END
Speech by H. E. the Prime Minister, Kay Rala Xanana Gusmão
Cebu, Philippines, 8 May 2026
On Friday, May 8th, 2026, in Dili, the Minister of State Administration, Tomás do Rosário Cabral, chaired a meeting with the heads of various United Nations agencies based in Timor-Leste, led by the United Nations Resident Coordinator in Timor-Leste, Funmi Balogun, to review progress in implementing the Decentralisation and Local Government policy and the alignment of the Government’s priorities in this area. 
During the meeting, the Minister emphasised that decentralisation and the organisation of local government are enshrined in the Constitution and are among the priorities of the 9th Constitutional Government. He also noted that implementing this policy aims to bring public services closer to communities, strengthen civic participation, promote stronger local institutions, and stimulate private-sector development in remote areas.
Tomás do Rosário Cabral also presented updates on the implementation of Government Resolution No. 6/2025 on the Strategy for Administrative Decentralisation and the Establishment of Local Government Bodies for the 2025–2028 period. In this context, he explained that the Ministry of State Administration continues to assess the minimum conditions in municipalities to verify each municipal authority’s preparedness before the decentralisation and local government process is implemented.
The minister also emphasised the need to strengthen coordination between international agencies and local authorities in implementing development programmes at the hamlet, village, and administrative post levels, including education, health, agriculture, civil protection, and school feeding.
During the meeting, it was also explained that the Oe-Cússe Ambeno Special Administrative Region Authority (RAEOA – acronym in Portuguese) is now under the jurisdiction of the Ministry of State Administration, pursuant to a recently approved new decree-law, and has assumed powers similar to those of other municipal authorities.
United Nations representatives expressed their support for the decentralisation process. They reaffirmed their commitment to continue providing technical assistance to municipal authorities and to align their programmes with the priorities identified by local authorities.
On May 7th, 2026, Vice Minister of Foreign Affairs and Cooperation Jesuína Maria Ferreira Gomes participated in and addressed a high-level policy dialogue organised by the LIFE-AR initiative (Least Developed Countries Initiative for Effective Adaptation and Resilience) in Vienna, Austria. The Vice Minister was accompanied by Ambassador Adão Soares Barbosa, Special Envoy and Roaming Ambassador of Timor-Leste for Climate Affairs, who represented Timor-Leste as a member of the Least Developed Countries (LDC) group.

The meeting was co-organised by the current Chair of the LDC Group on Climate Change, Ambassador Adão Soares Barbosa, and the Austrian Federal Ministry of Agriculture, Forestry, Climate Action, Environmental Protection, Regions, and Water Management. Austria is a signatory to the LIFE-AR Compact, demonstrating political support for climate adaptation initiatives for the most vulnerable countries.
In her remarks, Vice Minister Jesuína Gomes spoke on behalf of the Least Developed Countries, noting that the group comprises 44 countries and more than one billion people who, despite contributing less to climate change, face its most severe consequences. She also emphasised the urgent need to strengthen international support for climate adaptation, in a context where global climate finance faces pressures linked to various geopolitical priorities.
The discussion focused on the challenges of accessing climate finance for adaptation, the obstacles faced by LDCs, and the need to strengthen financing mechanisms to enable more effective, locally tailored responses.
The LIFE-AR initiative, established in 2018 by the LDC Group, is currently the only platform, led and managed by the Least Developed Countries themselves, dedicated to transforming the mechanisms for accessing, governing, and implementing climate finance. The programme aims to strengthen the institutional capacities, national systems, and human resources of LDCs by promoting locally led adaptation approaches.
During the meeting, Ambassador Adão Soares Barbosa delivered the opening remarks on behalf of the Least Developed Countries (LDCs), thanking the Austrian Government for organising the dialogue and for its support for LIFE-AR. He also emphasised that the current context is a decisive moment to consolidate international partnerships that can support the vision and priorities of the Least Developed Countries for climate adaptation.
Among the main objectives of the dialogue were the official launch of the Updated LIFE-AR Strategy for 2026–2030 and the transition roadmap to establish an independent LDCs framework; the presentation of results and lessons learned at the national level; strengthening the policy link between COP30 and COP31; and inviting new partners to join the LIFE-AR partnership agreement (LIFE-AR compact) and to support locally led adaptation approaches.
The event also featured a networking reception hosted by the Austrian Government to strengthen informal dialogue and cooperation among international partners.
The dialogue concluded with a reaffirmation of donor countries’ and international partners’ commitment to provide financial support for LIFE-AR, with a view to strengthening locally led climate adaptation in Least Developed Countries. It was also noted that Turkey, as the country presiding over COP31, will sign the LIFE-AR Pact at COP31.