The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Chairperson of Committees, we discuss regulations on importing salt under the Imports and Exports (Control) Act. First, a government’s economic responsibility is stabilization. Our policy statement clearly recognized this, including proceeding with the IMF program, with its constraints and obligations.

¶ 02 The Opposition hoped we would deviate from that framework. Their hopes are dashed. We have laid the economic foundation and are now formulating policies across sectors to implement our five-year program—sector by sector, with consistent import–export regulations and tax policies. Our base is to increase domestic production of essential goods and services. Items like rice, coconuts, sugar, onions, and salt can be produced here. If production has declined over time, rebuilding requires policies, land preparation, yield improvements, raw materials, and technology. It takes time to expand capacity. Meanwhile, to meet consumption, we update import–export regulations to keep prices stable while ramping up domestic production in parallel. Our approach is clear: short-, medium-, and long-term actions.

¶ 03 Some bring random topics because they lack substantive criticisms. GDP is up 4.8%, exports up 8%, manufacturing up 9%, private credit up 15%, inflation, interest rates, and exchange rate are under control. Having failed to attack those, they fish for sensational tales.

¶ 04 On salt: the process takes three to four months; rains during that window reset production. We will expand salt-producing land and strengthen the state mechanism to break the salt mafia. On pricing claims—landed price vs. retail—remember the necessary processes: quality assurance, iodization, and bringing product to market. A state company is now entering the market to create competition; the Government is intervening strongly.

¶ 05 On e-commerce: globally, markets have shifted online. In Sri Lanka, for years Customs bypassed proper HS-code-based declarations for small parcels under a “green channel,” leading to rising volumes and unregulated B2B trade via B2C platforms, with no local office, regulation, or consumer protection. In April, Customs reverted to proper procedures in the absence of policy, creating temporary hardship for individual consumers and small traders. The Finance Ministry, Customs, the Industry Ministry, and the Digital Economy Ministry are now formulating national policy to distinguish B2C from B2B, set lower duties or de minimis thresholds for genuine B2C, and enable efficient cross-border e-commerce both inward and outward.

¶ 06 On digital services VAT: the 2024 Budget imposed VAT on digital services. Local providers paid VAT while offshore providers like Uber did not, creating unfair competition. From October, VAT will apply to cross-border digital services. The Digital Economy Ministry will facilitate registration, and we will ensure thresholds protect SMEs. This aligns with global practices for the digital economy.

¶ 07 On environmental policy: we lacked a robust framework, leading to recurring crises that the Opposition waves around. The Environment Ministry is bringing amendments after two decades to modernize the law.

¶ 08 On the viral “plug base” claim at Rs. 72,000: this is not a household plug; it’s an industrial-grade unit to equip Divisional Secretariats for the national digital ID infrastructure. Specifications were prepared with Moratuwa University and the Procurement Committee, combining global and local standards, and bids evaluated on multiple criteria—not merely lowest price. Do not attack the Government with social-media hoaxes; even the main Opposition amplified this without basis.

¶ 09 The IMF program’s progress, macro stability, inbound FDI, strengthened international engagement, and donor cooperation are visible. Smears and falsehoods will not derail this Government. We proceed with collective decisions and will strengthen communications so the public fully understands. Thank you.