The Hon. Sajith Premadasa - Leader of the Opposition

¶ 01 Mr. Chairman, while debating Foreign Affairs and Foreign Employment, I must start with a domestic concern: a spate of murders—Akmmimana, Thaldena, Meegahakiula, Angunakolapelessa, shooting in Chilaw, a death in Muttur, and yesterday in Ambalangoda and two in Grandpass, Colombo. Public security is in serious crisis. This directly and indirectly affects tourism. An urgent, robust law-and-order response is essential. Also, the former IGP remains untraceable; a female alleged to have organized a courthouse murder is still at large. The country needs clarity and solutions.

¶ 02 To the Hon. Minister: you noted progress with IMF, ISB holders and bilateral creditors. Ultimately, success hinges on whether Sri Lanka can meet debt service by 2028. Before coming to office, you promised a new debt sustainability agreement and a revised IMF framework. Indeed, the current IMF deal contains problematic elements. For instance, setting primary expenditures at 13 percent of GDP and an unrealistic debt trajectory. The macro-linked bonds idea—where creditor relief shrinks as growth rises—is a perverse formula.

¶ 03 However, after winning office, you have essentially adopted the previous Government’s path. The debt sustainability curve today shows we are off-track. Please reassess growth and revenue assumptions and re-engage bilaterals, ISB holders and IFIs to replace the unrealistic targets set by the last Government. Otherwise, 2028 will be extremely difficult. This is not politics; it is fact-based. Between 1975 and now, of 75 IMF programmes reviewed, only about 41 percent achieved success at first restructuring; 59 percent required second or third attempts. Let us be in the successful 41 percent—avoid serial restructurings that would burden 22 million people.

¶ 04 Externally, a tariff war is unfolding, undermining the WTO/GATT free flow of goods and services. Our export destinations are insufficiently diversified. We must push into Africa, Asia, Latin and South America to protect foreign exchange earnings and reserves needed for 2028 debt service.

¶ 05 Strengthen ties with India and China. India supported us with nearly USD 6 billion at our darkest hour. We should open access to the Indian market via a free trade agreement; likewise, pursue an FTA with China—both are the world’s largest consumer markets. To reach our 2028 goals, we must prioritize FDI with country-dedicated industrial zones—for Indian and Japanese industries, for example—providing them with tailored ecosystems.

¶ 06 We should also proactively build relationships with the US Administration—particularly the USTR, Secretary of Commerce, White House Chief of Staff, and National Security Advisor—to mitigate impacts of any US tariff measures on Sri Lanka.

¶ 07 Thank you.