The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Presiding Member, years of misguided policies and short-sighted economic decisions have brought industries down and the country to this point—consecutive policy failures and administrative failures. Although a new Government has taken over, we are still within that flow.

¶ 02 Gazettes stemming from prior policies are before us for approval to complete processes. That does not mean one can escape the deficiencies of those policies and poor management. Looking at the Gazette on rice imports, we see that investment in agriculture and in modern storage was neglected, leaving us a dilapidated system. Production and distribution of rice were not properly managed, leading to price instability.

¶ 03 We import much of the agricultural inputs—including fertilizer—despite domestic phosphate resources and potential for local production, because necessary investments were not made. Mismanagement within the State apparatus exacerbated this. Data are missing or unreliable; what then were past governments doing? Importing rice via “deals” without assessing benefit to farmers or consumers—problems were managed, not solved. The present Government, instead of merely managing, is formulating solutions.

¶ 04 The next Gazette introduces 34 new standards—a positive step—but it also highlights that for years consumers were exposed to substandard food, and producers faced difficulties. Merely introducing standards is insufficient; ports and customs procedures and infrastructure must be aligned. This Gazette was issued on 17 May last year; over seven months have passed without preparing the operational mechanisms, causing issues for importers, businesses and consumers. We have already intervened to set things right. This is another example of administrative and management failure.

¶ 05 On the strategic development notification granting tax concessions: it was signed in August last year. Sensitive agreements were signed even two days before the Presidential Election; thus, lack of time is not an excuse. The previous Government’s inefficiency damaged investor confidence and the country’s reputation. We, however, did not seek commissions or obstruct prior investments; we facilitated them and took necessary steps.

¶ 06 An Opposition Member asked in Committee about effluent discharge harming seawater. Officials confirmed that an Environmental Impact Assessment has been completed and operations will proceed under proper standards.

¶ 07 While macroeconomic stability is being restored, the lack of supporting structures due to past neglect is creating friction. The Government is implementing the necessary measures to move forward successfully. Thank you.