Minister for public security Sarath Weerasekera told a news conference he had signed a paper on Friday for cabinet approval to ban the full face covering worn by some Muslim women on "national security" grounds.
"Nobody can open a school and teach whatever you want to the children," he said.
The deal will allow the island to weather "present difficulties", State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said in an interview with the Daily Mirror.
Dwindling foreign reserves, a tumbling currency and rising debt levels have dogged Sri Lanka over the last year, leading to increasing fears of a default.
"We also exchanged views on how to give farmers more for their produce and get cheaper food and fruits to the population by using technology to eliminate middle men," the PM tweeted.
The PM also inaugurated Sri Lanka's High Performance Sports Complex.