The Hon. Anura Kumara Dissanayake

¶ 01 Exactly.

¶ 02 To expand daily mobility, trade, and access to services for rural communities, we will reactivate stalled road and bridge constructions and widen major junctions. Accordingly, Rs. 24,000 million is allocated for rural roads and Rs. 2,500 million for rural bridges.

¶ 03 16. Investing in the silver economy

¶ 04 With rapid demographic transition, the proportion of those aged 60+ is rising faster than the youth. We will allocate Rs. 10 million to the Ministry of Rural Development, Social Security and Community Empowerment to develop a policy to engage older persons as active participants in society and the economy.

¶ 05 17. Women’s empowerment: safety and economic opportunities

¶ 06 In 2026, we aim to strengthen the Thriposha programme and the monthly nutrition support for pregnant and lactating mothers, expanding coverage and distribution through stronger public health networks.

¶ 07 Women’s participation in the labour force remains low at 32%. At Divisional Secretariat level across the island, we allocate Rs. 240 million to support women entrepreneurs to start or strengthen self-employment and cottage industries, alongside access to concessional credit under previously proposed schemes, implemented by the Ministry of Women and Child Affairs. We also propose an additional Rs. 200 million for women’s development programmes.

¶ 08 18. Relief for Sri Lankan migrant workers

¶ 09 Migrant remittances are our highest source of net foreign exchange. In appreciation, we will introduce a low-interest housing loan scheme for migrant workers, with interest subsidies funded by the Sri Lanka Bureau of Foreign Employment (SLBFE). We will also introduce a contributory pension scheme for migrant Sri Lankans, with SLBFE to complete groundwork and implement within 2026. Rs. 2,000 million from SLBFE funds will be set aside initially. Instead of spending funds on nationwide exhibitions as in the past, we will establish a solid housing loan scheme and a pension scheme for migrant workers with Rs. 2,000 million from the Authority’s funds.

¶ 10 19. Minimizing human–elephant conflict

¶ 11 Each year, about 80 human lives and more than 260 elephants are lost due to HEC, with most incidents in Anuradhapura, Polonnaruwa, and Ampara. HEC threatens both rural and national economies. We must find solutions.

¶ 12 - To enhance the efficiency of the Department of Wildlife Conservation, approval has been given to procure 294 vehicles and modern communications equipment. - To complete all planned, partially built, and proposed electric fences in all identified necessary areas, we allocate an additional Rs. 300 million this year to existing provisions. We consulted District Secretaries in all affected districts to estimate required fence kilometres and costs; we will complete all currently planned and identified fence segments this year. - We will second 5,000 Civil Security Department officers on a permanent basis to monitor fences and minimize HEC, providing them allowances and fuel for fence maintenance with an allocation of Rs. 375 million. - Rs. 80 million is allocated for fodder fields and water-source management to ensure food and water for elephants and reduce incursions. - In addition to existing Wildlife allocations, we will allocate an extra Rs. 1,000 million to complete fences and take other necessary measures that arise during implementation. - We also propose Rs. 10 million for long-term, research-based solutions beyond fencing, with broad discussion including in Parliament.

¶ 13 20. Promoting drama, performing arts, and literature

¶ 14 Recognizing cultural diversity and fostering a compassionate society that respects heritage and diversity, we propose an additional Rs. 50 million—on top of existing funds—to promote drama, performing arts, and literature.

¶ 15 21. Development in the media sector

¶ 16 - Due to mismanagement, several State media institutions have collapsed to the point of struggling to pay salaries and relying continuously on Treasury support. Specialists have been appointed to key positions and recovery efforts are underway. Until they stabilize, we will support Sri Lanka Broadcasting Corporation, Sri Lanka Rupavahini Corporation, and Independent Television Network for operations and essential capital expenditure in 2026. - To develop media professionals in line with modern technology, we propose Rs. 100 million for higher-education scholarships and to support access to required technical equipment. In addition, from the ongoing Chinese-funded housing complex, we are focusing on allocating units to journalists.

¶ 17 22. Developing a sports culture

¶ 18 To popularize sports among children and youth by expanding facilities, Rs. 1,800 million has been allocated, with an additional Rs. 800 million proposed. For about 4,000 athletes participating in second-tier pools, international meets, national games, and elite pools, Rs. 1,163 million is allocated for monthly stipends, nutrition, and training. Rs. 225 million is set aside to develop sports complexes in Mannar and Vavuniya, Rs. 150 million to complete Kalmunai Indoor Stadium, and an additional Rs. 150 million to develop sports complexes in the Northern and Eastern Provinces.

¶ 19 23. Food economy—security and resilience

¶ 20 23.1 Agriculture and livestock

¶ 21 - To ensure higher guaranteed prices for well-dried paddy, we will provide modern drying machines to farmer organizations and cooperatives, administered under the “Strengthening Producer Cooperatives and Youth Agripreneurs” programme, with an additional Rs. 500 million. - To reduce price volatility of big onion, potato, and red onion by strengthening Sathosa’s mechanism and storage, we propose Rs. 1,000 million. There is a robust paddy procurement system but little for onions, potatoes, and yams. We will develop standards and storage and empower Sathosa to stabilize prices. - The Dambulla cold storage facility of 5,000 MT capacity, built with over Rs. 500 million but not operational due to technical issues, must be made productive. We propose Rs. 250 million to complete construction and install solar panels, and to finalize an appropriate management model—whether government-operated, farmer-managed, or private-partnered—under a plan by the Ministry of Trade. - Using climate-smart irrigation, we will increase agricultural production in Matale, Kandy, and dry-zone resilient areas by improving 400 identified minor schemes under a medium-term budget framework. For 2026, Rs. 1,000 million will be provided to commence 100 schemes. - Domestic milk production meets only about 40% of demand; significant foreign exchange is spent on imports. To reach 75% self-sufficiency by 2030 (about 1,200 million litres annually), we will organize farmers by veterinary ranges to improve genetics, nutrition, and health, with Rs. 1,000 million for feasibility and groundwork under the “Small and Medium Livestock Development Programme.” - To increase high-grade breeding stock—especially dairy cattle and pigs—we will select certain NLDB farms (out of 31 farms over 28,000 acres) with strong potential, and develop breeding units and fodder cultivation with Rs. 1,000 million. NLDB cannot manage all lands effectively; we will focus on the most viable farms to modernize. - We will resume the Milk Processing Plant at Badalgama (Milco Pvt Ltd), begun in 2015 with approx. Rs. 1,800 million already spent but halted since 2022. In line with policy to boost local milk production and processing quality, we propose Rs. 3,000 million for essential works, corrections, equipment, and refurbishment to commence operations and relocate the Narahenpita plant. The loans (about EUR 66 million) were contracted in 2014; we have already serviced EUR 29 million despite the plant lying idle. We will also pursue investigations into wastage and corruption involved.

¶ 22 23.2 Coconut cultivation

¶ 23 - Annual coconut production is around 2,800–3,000 million nuts; 70% is for household consumption and the rest for industry. Industrial demand is not fully met. As a long-term measure, we will expand cultivation in the established Northern Coconut Triangle under Coconut Research Institute recommendations with Rs. 600 million. - While large-scale growers adopt fertilizer and moisture-conservation practices, smallholders with under five acres lag. Although a programme covering about 4,000 acres exists, it must be expanded for national targets. We propose Rs. 2,500 million for a structured support programme (including fertilizer and moisture-conservation assistance) for smallholders with under five acres among the approximately 447,000 acres already under coconut to meet medium-term productivity and export goals.

¶ 24 We also caution some large landholders who retain coconut estates primarily for land-value gains rather than productive output. Idle or poorly maintained coconut lands will not be tolerated. We will legislate to ensure proper maintenance and productivity, while being ready to provide concessional finance where needed.

¶ 25 24. Fisheries sector

¶ 26 24.1 Fisheries harbours

¶ 27 - To improve safety, efficiency, and reduce post-harvest losses, we allocate Rs. 300 million to rehabilitate and upgrade selected harbours including Beruwala, Ambalangoda, Kudawella, and Nilwella. An additional Rs. 1,000 million is proposed to further upgrade essential harbour infrastructure.

¶ 28 24.2 Safety and technology

¶ 29 - To decongest and ensure safe navigation, we allocate Rs. 350 million to improve the Valachchenai fishing harbour. - Rs. 100 million is proposed to provide life-saving equipment to fishing vessels. We will introduce modern technologies used globally to identify fishing grounds and communicate them efficiently to our fishers, including satellite-based identification, with Rs. 100 million.

¶ 30 24.3 Post-harvest and aquaculture

¶ 31 - Rs. 500 million is allocated to develop market infrastructure (thottupola) to reduce post-harvest losses and improve quality and quantity. - Rs. 100 million is allocated to upgrade aquatic breeding and freshwater fish development centres.

¶ 32 24.4 Blue economy

¶ 33 Mr. Speaker, Sri Lanka’s blue economy is vital to national prosperity and sustainable development. Our strategic location in the Indian Ocean offers a unique opportunity to leverage marine and coastal resources and emerge as a regional hub for blue-economy investments. We propose Rs. 100 million for a comprehensive study of economic benefits in marine/coastal fisheries, mariculture, eco-tourism, ship-related activities, Special Economic Zone (SEZ)-linked marine biotechnology, and seabed resource development.

¶ 34 25. Irrigation and water supply

¶ 35 25.1 Irrigation

¶ 36 We allocate Rs. 91,700 million for irrigation development. By restarting temporarily halted projects, we aim to increase agricultural production, spur regional development, and create employment.

¶ 37 - We allocate Rs. 50 million to restart the Mundeni Aru Project with initial works. - We will discuss with development partners to secure resources to commence the Talpitigala and Kumbukkan Oya reservoir projects. - To expedite the Lower Malwathu Oya Multipurpose Development Project in Northern Province to bring new lands under cultivation, increase productivity of existing lands, meet drinking water needs, and address Mannar floods, we propose Rs. 5,000 million. - Urgent repairs to the Senanayake Samudraya sluice, and rehabilitation of Gal Oya, Rajanganaya, Huruluwewa, Minneriya and others will receive Rs. 6,500 million. - For small tanks, canals, and spill systems, Rs. 8,350 million is allocated to rehabilitate about 650 tanks and around 350 km of canals.

¶ 38 25.2 Urban flood control

¶ 39 We recognize the need for sustainable solutions with short-, medium-, and long-term measures, especially for flood-prone cities like Colombo, Gampaha, Galle, Ampara, Mannar, and Puttalam. We will prepare an integrated plan with the Irrigation Department, UDA, Land Development Corporation, and local authorities, supported by Rs. 250 million.

¶ 40 For chronic flooding in Ratnapura, Kalutara, Matara, we will conduct a formal feasibility on the Gin and Kalu Ganga basins, with Rs. 500 million. Meanwhile, regarding issues arising after the 2022 barrier on the Nilwala in Matara, we are undertaking an IESL-led study; we allocate Rs. 1,000 million to implement solutions based on findings, and Rs. 1,200 million to pay long-outstanding compensation to paddy lands damaged or left uncultivable due to floods.

¶ 41 To address coastal erosion, siltation, and sandbar formation impacting fisheries and tourism near Kalutara, we propose Rs. 100 million for a rapid, practical stabilization measure, as recommended by the Kalutara District Development Committee.

¶ 42 For flood risk mitigation in Batticaloa District, we propose Rs. 500 million for preliminary studies to construct the Kiraan and Ponddukalchenai bridges under the Ministry of Highways and Urban Development.

¶ 43 25.3 Drinking water supply

¶ 44 Piped water currently reaches only about 62% of needs, with severe gaps in districts like Jaffna (~14%) and Gampaha (~60%), Matale (~52%), and Batticaloa (~20%). For new and ongoing schemes in Gampaha, Kalutara, Anuradhapura, Kandy, Jaffna, Kilinochchi, and Kurunegala, we allocate Rs. 85,700 million, and will also mobilize private investment alongside the public sector, revising legal and regulatory frameworks as needed.

¶ 45 - Rs. 1,000 million is allocated for a new Ambatale water supply system to meet Colombo urban demand, and to upgrade the Kolonnawa and Nugegoda–Jubilee Canal network for new supplies; and for a Lunugamwehera-area project in Hambantota to meet drinking water needs and support industry given water scarcity.

¶ 46 By 2040, Hambantota’s daily water demand is projected at 300,000 m3; current supply is ~90,000 m3 from sources such as Lunugamwehera, Walawe, Kirindi Oya, Kachchigala Ara, Kirama Oya, and Urubokka Oya. Preliminary analysis suggests an additional 100,000 m3/day can be mobilized quickly through investments at these sources; a full feasibility will be conducted urgently.

¶ 47 26. Sustainable infrastructure

¶ 48 26.1 Public transport

¶ 49 To realize “Public Transport Service—Efficient Journeys,” Rs. 67,200 million is allocated for a more efficient, safer system:

¶ 50 - Rs. 3,600 million to introduce 600 long-distance SLTB buses, replacing unsafe, aged fleets. - Rs. 2,062 million in 2026 to replace worn engine sets of 307 SLTB buses. - Rs. 790 million for new tools, machinery, and equipment for SLTB depots and workshops. - Rs. 3,300 million for five new diesel multiple unit (DMU) sets for Sri Lanka Railways and to commence digital ticketing and service digitization. - For rural routes that are unprofitable and thus shunned by private operators, we propose an interim Rs. 2,000 million subsidy in 2026 to ensure service continuity, largely via SLTB.

¶ 51 26.2 Highways

¶ 52 Due to the economic crisis, many road projects were halted. We will restart them, allocating Rs. 342,000 million for road development in 2026:

¶ 53 Central Expressway—Phase I (Kadawatha–Mirigama): Financing decisions have been reached and works have restarted, with Rs. 66,150 million in 2026. The initial estimate was Rs. 161 billion; due to crisis and contract issues, costs have escalated towards Rs. 233 billion. We must complete this with the existing contractor under unfavourable legacy agreements.

¶ 54 Central Expressway—Stage III (Pothuhera–Galagedara): We plan to complete Pothuhera–Rambukkana by Q1 2027, allocating Rs. 10,500 million. For the Rambukkana–Galagedara section, to avoid delays in external financing, we will commence under domestic funds by prepaying portions of existing loan obligations this year, freeing space next year, and allocate Rs. 20,000 million, targeting completion by end-2028.

¶ 55 Kandy access: Alongside the Kandy Multimodal Transport Centre, we will fund the widening and improvement of key Kandy access roads to ease congestion.

¶ 56 Kurunegala–Dambulla proposed expressway: Following RDA’s assessment, we will proceed and allocate Rs. 1,000 million to complete land acquisition, noting its importance to tourism flows toward the East (Trincomalee and Batticaloa).

¶ 57 Ruwanpura Expressway (Kahatuduwa–Ingiriya): Given piecemeal works and community impacts, we will review the 2018 feasibility, consider improving current access instead, and continue land acquisition with Rs. 1,500 million.

¶ 58 Port Access Elevated Highway linkage to Marine Drive (Phase II): To minimize expected congestion near the Lotus Roundabout and Galle Face as the Port City access highway connects to the national network, we will conduct a feasibility study for an elevated marine link from the port-city end to Marine Drive via sea, allocating Rs. 330 million. Completion of the Port Access up to Lotus Junction is targeted for 2026; however, multiple complementary measures are required to manage traffic and environmental impacts around Galle Face.

¶ 59 26.3 Road safety programme

¶ 60 With 24,589 road accidents and 2,262 fatalities reported in 2024, causing 2,368 deaths, we will augment existing allocations with an extra Rs. 1,000 million for broad road-safety works—engineering safeguards, black-spot improvements—identified by RDA, starting January 2026.

¶ 61 27. Energy sector

¶ 62 27.1 Renewable energy

¶ 63 Mr. Speaker, since assuming office in September last year, we introduced competitive procurement for government acquisitions to ensure the best prices for consumers. A major success was in recent power procurements. The previous administration awarded two wind projects totalling 500 MW at USD cents 8.26/kWh without proper procurement. We declined to proceed unless the tariff dropped below five cents. Subsequently, we tendered two 50 MW wind projects at Mullikulam; bids came at USD cents 3.96/kWh and 3.77/kWh. The Mannar Phase I 50 MW expansion also cleared at an attractive USD cents 4.65/kWh. We can push prices even lower via proper tendering and by pre-identifying wind sites through the Sustainable Energy Authority with full permits, feasibility and EIA completed before tender, so winners can start immediately.

¶ 64 Allegations that we act against solar are false. Rooftop solar capacity grew from 150 MW (2023) to 590 MW (2024) and to 685 MW (2025). We reduced rooftop solar tariffs from Rs. 39/kWh years ago to slabs now around Rs. 20.09 (≤5 kW), Rs. 19 (5–20 kW), Rs. 17 (20–100 kW), Rs. 15 (100–500 kW and 500–1,000 kW), and Rs. 14 (>1 MW), lowering consumer bills and ending overpriced, crony PPAs of 20 years at outdated rates.

¶ 65 We also called tenders for 16 battery systems of 10 MW each (total 160 MW) for peak shifting. Offered storage dispatch around Rs. 17/kWh, enabling total delivered cost near Rs. 29/kWh when combined with solar generation costs—far below legacy projects like Pooneryn’s earlier structure at about Rs. 51/kWh. Another 100 MW of storage tenders are being readied.

¶ 66 27.2 People-centric energy transition

¶ 67 As a key step toward a people-centric energy transition, we amended the Electricity Act and established four fully state-owned companies for generation, transmission, distribution, and system control. Each company will operate under performance targets and transparent contracts, with the regulator setting tariffs based on data from the system operator.

¶ 68 CEB staffing reduced from 26,000 to about 22,000; 341 accounts exist with inconsistent controls. The unbundled structure will improve accountability. According to CEB’s 2025–2044 Long Term Generation Plan, electricity demand will rise by about 60% over the next decade. For decades, our generation mix debates, poor planning, and procurement delays meant electricity mostly served lighting and small appliances rather than powering economic activity. We will pivot electricity use to power new economic frontiers—data centres, transport electrification, green hydrogen, and green ammonia—while modernizing transmission and distribution with smart technologies.

¶ 69 We can rapidly advance green hydrogen by converting abundant daytime RE into hydrogen via electrolysis and storing it. We aim to commence a green hydrogen programme in 2026, requiring significant land, underscoring the need for strategic land-use planning. To reinforce this, we will establish an integrated Economic Development Framework linking Energy, Digital, and Transport. We will also bring an Energy Transition Act in the coming year to provide the legal framework.

¶ 70 28. Productive use of underutilized buildings and constructions

¶ 71 Over 2,700 constructions built by various government institutions have been abandoned or partially completed and left unused—education buildings, hospitals, fisheries facilities, vocational centres, community halls, service centres, multi-purpose buildings, warehouses, cultural centres, etc. We will assess these assets for rehabilitation via private participation where feasible (hotels, commercial centres, factories, or other uses) and prepare plans to productively deploy them. Examples include the half-built SAARC Cultural Centre in Matara (cost ~Rs. 1,600 million) with no takers; an Anuradhapura conference hall built with French aid; a large Jaffna town hall needing further funds; and oversized urban council buildings which local authorities cannot afford to operate. We will compile full data, assess, and either concession to private sector or repurpose—e.g., as voluntary centres—to relieve the Government’s burden and extract value from sunk public investments.

¶ 72 29. Supply-chain development

¶ 73 29.1 Port logistics and container operations

¶ 74 Leveraging our strategic location, Sri Lanka can become a regional leader in port logistics. With ADB support, Colombo Port’s West Container Terminal (Phase 2) and with World Bank support, feasibility for port logistics centres and the Colombo North Port development will proceed, enhancing capacity and operational efficiency next year. We will also establish the Kerawalapitiya Customs verification centre and a commercial facilitation centre in Bloemendhal. The Bloemendhal centre has its EIA approved; remaining steps will be expedited.

¶ 75 To position Sri Lanka Ports as a leading logistics hub, we will enhance digitalization and automation, including a Port Community System as an integrated data management platform, to ensure seamless and efficient port operations.