The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Speaker, today’s debate is on Gazette Extraordinary No. 2437/04 of 19 May 2025 under the Imports and Exports (Control) Act. A shortage of salt arose and a decision was taken to import 20,000 metric tonnes. Generally, we do not import salt, but because retail prices shot up to Rs. 300–350 per kilo and public distress grew, we decided to import.

¶ 02 At the Public Finance Committee, extensive discussions occurred. I expected Hon. Harsha de Silva, as Chairman, to also speak on this Gazette in the House. Instead, much was said on other topics. In the Committee, questions were asked about boards of Lanka Salt Ltd., National Salt Ltd., Puttalam Salt Ltd., Manthai Salt Ltd., and why Lanka Salt is under an Employees’ Provident Fund trust, and about merging entities. The policy question—why this Gazette was issued—was not discussed properly. Officials were pressed on names, even causing them discomfort, which is not necessary. Committees should focus on mandate: policy at Public Finance; board details at State Enterprises Committee.

¶ 03 Hon. Harsha explained and accepted the concern; I appreciate the clarification. But when such proceedings circulate in media, officials and their families face ridicule. Let us avoid that.

¶ 04 On the salt situation: once we allowed imports up to consignments shipped before 10 June, many rushed; some opened B/Ls on 8–9 June and even 11 June; we did not allow beyond 10 June. Stocks arrived, prices moderated; per-kilo prices reduced to about Rs. 180–210 in stages. We engaged all market players. National Salt Company imported 2,800 metric tonnes at USD 54 per tonne; with customs duty of Rs. 40,000 per tonne, local shipping/clearing around Rs. 2,300 per tonne, and with a Rs. 3,000 per-tonne margin for the company, the selling price was about Rs. 61,500 per tonne. We paid about Rs. 112 million in taxes to the Government and earned Rs. 8.4 million in profit—without unfairness. We distributed 100 containers to 44 producers, to 4 industries, and to Colombo wholesalers, including Lanka Salt Ltd. We ensured transparency and fairness; previously there were monopolistic practices. I table the distribution list in the House for the Hansard.

¶ 05 On branding: questions arose about “Elephant Pass Salt” labelling. Today, you can see the one-kilo pack priced at Rs. 210 available widely; the name appears equally in all three languages. Supply has stabilized; prices declined due to state intervention by National Salt and the Consumer Affairs Authority. When shortages occur from natural causes—this industry depends about 75 percent on weather—state intervention is needed to restore supply. We will further reduce prices as Hambantota and Elephant Pass harvests arrive.

¶ 06 To the Opposition: earlier you privatized or transferred stakes—Lanka Salt Ltd. shares to the EPF trust and to the market. Please acknowledge that. We are rebuilding and ensuring no space for mafia practices through co-operatives or otherwise; expiring tax agreements from your period will be reverted and oversight strengthened where appropriate. We do not say the state must do every business, but for essential public services like salt, timely state intervention ensures fairness.

¶ 07 I assure this decision did not harm the country. Allegations that individual ministers profited are false; the price drop from Rs. 350 to Rs. 180 was due to policy, not cuts. This Gazette addressed a specific need and was implemented properly. We report it to Parliament accordingly.

¶ 08 List tabled: NATIONAL SALT LTD. — IMPORTED SALT DISTRIBUTION CHART (Total allocation by company)