The Hon. Nimal Palihena

¶ 01 Hon. Deputy Speaker, on the second day of the Debate on the maiden Budget of the National People’s Power Government for 2025, I am grateful for the opportunity to speak on behalf of the Government. We formed this Government hand in hand with a people who had undergone severe hardship, and we carry a responsibility to realize their aspirations. Recognizing that responsibility, we presented this Budget.

¶ 02 We plan an expenditure of Rs. 8,835 billion and expect to raise about Rs. 4,990 billion through taxes and other means, to be deployed mainly through 24 ministries, 134 departments and 21 specialized units to serve the public. We must admit we cannot operate at 100 percent capacity given the state in which we took over. Our aim has been to discard the unsuitable parts of the old system and prepare a more people-friendly Budget.

¶ 03 This Budget focuses on immediate interventions where necessary and on long-term measures where appropriate. It prioritizes poverty alleviation as well as support for agriculture, job creation and tourism. After a long period of suffering, we aim to revive the people. We are confident that in 2025, tangible benefits will reach the people.

¶ 04 Given the widespread impoverishment, we introduced, at the outset, a Rs. 6,000 grant for school supplies and Rs. 3,000 for two pairs of shoes for schoolchildren in low-income families, and targeted benefits to a selected portion of the population. These are part of a fair social intervention.

¶ 05 Recent climatic events caused extensive damage, including in Anuradhapura which I represent. We have moved swiftly with fair interventions: renovating tanks, roads, and related works.

¶ 06 It is said this is not a new Budget but a continuation of the previous government’s steps. If prior rulers had done things properly, Sri Lanka would be a highly developed country today. The criticism often is that the JVP opposed reforms, so the country could not move forward. Let me clarify the Lee Kuan Yew model that helped Singapore progress. We seek to adapt that model suitably: Meritocracy, Pragmatism and Honesty.

¶ 07 - Appoint capable, qualified people to positions. - Be practical: “It does not matter whether a cat is black or white, as long as it catches mice.” - Honesty in governance.

¶ 08 Deviating from these led us to collapse. If we had given the country into honest hands, we could have empowered the right people to rebuild. Instead, theft, fraud, and corruption thrived. Our Government will not tolerate fraud or corruption; we work with commitment and accountability.

¶ 09 We have increased basic salaries of workers. Some ask if the increase is sufficient. Based on current cost-of-living indices, a family of four needs at least Rs. 75,000 per month. Historically, workers received mostly allowances rather than a clear basic salary. By strengthening the basic salary, their extra duty and other payments also rise.

¶ 10 Regarding PAYE/APIT: The previous regime removed PAYE and reintroduced it as APIT with a 6–36 percent range. Our Budget raised the tax-free threshold from Rs. 100,000 to Rs. 150,000, increasing take-home pay for public servants.

¶ 11 University academics’ pay has largely been allowances; we have rationalized and enhanced the basic. For instance, a probationary lecturer’s basic is increased to Rs. 91,365, taking total to Rs. 215,357, with an effective increase of about Rs. 29,303 in year one, rising further in 2026 and 2027.

¶ 12 For a Medical Officer, the previous gross was Rs. 232,725; under the new structure it rises to Rs. 277,800, an increase of Rs. 45,075, with Rs. 25,923 more in April alone.

¶ 13 This is a fair enhancement for public servants. We earned wage gains in the past through long struggles; today, without agitation, after study and analysis, we are delivering just solutions. This is a democratic Government fulfilling people’s aspirations through its first Budget. Thank you.