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

¶ 01 Hon. Deputy Speaker, in the Debate on the maiden Budget of the National People’s Power Government presented by the Hon. President, I wish to raise several important points. The Opposition claims this is Ranil Wickremesinghe’s Budget, or an IMF Budget, and lacks left orientation; that it is the same old scheme. If so, the Opposition cannot vote against it because for seventy-plus years UNP, SLFP, SJB, and SLPP coalitions shaped Budgets on their own principles. If ours followed those, how can they oppose? The real issue is: where have we diverged from Ranil’s IMF programme and the corporates’ agenda?

¶ 02 Hon. Kabir Hashim said there is no money for a development bank and vowed he would cut his tongue if it was set up this year. We have already commenced work: with Regional Development Bank, Bank of Ceylon, and People’s Bank, we are forming a Rs. 50 billion fund. As a first step, RD Bank has launched onboarding 15,000 entrepreneurs. This is underway.

¶ 03 Past Budgets burdened the common people with taxes while feeding “cronies.” Wages were not increased; protesters were tear-gassed; Budget debates proceeded under repression. Casinos were taxed on paper, but implementation was delayed; in 2022 casino revenue dropped to Rs. 500 million from Rs. 2 billion in 2023 projections due to poor enforcement. Capital gains tax yields were slashed. Inland Revenue’s contribution fell sharply; VAT and income taxes were reduced in ways that crippled revenue; national levies were abolished.

¶ 04 A country cannot run without revenue. Then, the poor were hit with telecom, electricity, and fuel taxes, with ad hoc SMS notices even after the Budget. That era destroyed public trust in the Budget process.

¶ 05 Our change is to put money into people’s hands, build their incomes, and drive a production economy—raise purchasing power, increase goods and services output, take industry to rural areas, foster startups, raise national income, and bring the people into the economy so that they willingly pay taxes. We thank officers of the Treasury, Inland Revenue and Customs; after the President assumed office, efficiency rose markedly. This is not by coercion, but by restoring trust that taxes go where they should.

¶ 06 We have raised public sector salaries and pensions, given income support to workers, and mandated a Rs. 9,000 raise in the private sector to boost spending power. Our vision has been accepted by society; investors did not flee, the IMF did not walk out. The Opposition predicted doom if Anura Kumara Dissanayake became President—yet, the country is moving forward.

¶ 07 Digital payments and services are being modernized: the GovPay app is active. We are launching metro bus services; upgrading rail for tourism; reviving SLTB; exploring canal transport for freight and passengers; modernizing logistics and clearance to Kelaniya and even Ja-Ela. We will support children in remand and institutional care with Rs. 1 million housing support per child on release—recognizing their humanity.

¶ 08 On industry: contrary to claims, allocations exist. Read the National Budget 2025 Citizen’s Budget book. Under Economic Services and Entrepreneurship, Rs. 99 billion is allocated: Rs. 38 billion recurrent and Rs. 59 billion capital; Rs. 38 billion specifically for SME development. We are reviving Valaichchenai Paper City and starting a chemicals industrial city at Paranthan. Cabinet has decided all waste paper from State institutions will be used domestically to reduce the roughly Rs. 197 billion we spend annually importing paper. Next month we are restarting the Kankesanthurai salt works; by end-2025 we aim to meet over 70 percent of national salt needs from State plants (National Salt Company and Lanka Salt Ltd.). We are also launching the Northern Coconut Triangle with 16,000 hectares newly planted.

¶ 09 When the Indian External Affairs Minister raised Northern issues, the President stated forthrightly that the Northern people are his responsibility and he will bear it. Unlike past Finance Ministers who feared allocating to the North lest the South react, we have allocated funds nationwide to build national production and national unity—North, East, and the plantation communities included.

¶ 10 We will not take perquisites; no new permits or bonuses. We ask public officials to serve properly in return for their pay rise—no bribes, no aiding tax evasion. Our Budget is built with people’s and professionals’ inputs to strengthen a production economy, correct external imbalances, and fortify the primary account. The Opposition may fear it, but the people have embraced it. Thank you.