The Hon. Chathura Galappaththi

¶ 01 Hon. Presiding Member, thank you for the opportunity to comment on the Government’s inaugural 2025 Budget.

¶ 02 Although the President was elected with a modest mandate in September, in November the people gave an overwhelming two-thirds to his Government. That mandate arose from the 2022 economic crisis and the desire for a new economic model and a system change. We must ask whether this Budget accomplishes that system change.

¶ 03 On page 39 of the President’s preface it says: when we assumed office, the country was in external debt restructuring; altering it significantly could destabilize the economy, and therefore we did not hinder that process. This means the Budget proceeds largely under the existing program—aligned with the IMF and similar to those of previous governments—though with some differences. People voted for system change; this inaugural Budget does not fully deliver it.

¶ 04 The proximate cause of the 2022 crisis was the wrong decisions of President Gotabaya Rajapaksa, which triggered queues for gas, fuel and essentials; people died in queues; youth lined up for passports. People turned against the prevailing system. Those who voiced that anger now hold power. Some in our benches keep invoking a “76-year curse.” I reject that narrative. In 1948, the country had a feudal, impoverished society. From 1948 to 1994, Sri Lanka transformed into one of South Asia’s fast-growing nations—through correct decisions: free education raised literacy from 35% to 95%; life expectancy from about 45 to 75 years; irrigation schemes (Kala Oya, Minneriya, Tabbowa, Yoda Wewa, Mahaweli) led to rice self-sufficiency for the first time in the 1980s; yields rose from ~650 kg/ha to ~3,500 kg/ha by 1994. The Mahaweli also delivered 100% hydropower then; exports in tea, coconut, rubber improved; J. R. Jayewardene’s open economy and free trade zones spurred development, which even inspired China to study us. Premadasa launched 200 garment factories. So, claiming a “curse” from 1948 to 1994 is wrong. Yes, mistakes were made; we accept responsibility for our eras. Since 1994, left-leaning leaders, opposed to market reforms, largely governed, and that is central to why we reached 2022. Experts—from the current Central Bank Governor, former Deputy Governor Dr. W. A. Wijewardena, IPS, the World Bank’s 2022 report, and Parliament’s Committee on Economic Stabilization—agree the crisis results not from 76 years but from wrong policies since about 2004.

¶ 05 In 2004, when we governed, we tried to make unpopular but correct reforms: halt political recruitments to the public service; introduce VRS; unbundle CEB into generation, transmission, distribution; restructure CPC; merge Customs and Inland Revenue into a Revenue Authority; reform SOEs. Those were blocked—principally by the JVP, who also helped elevate leaders in 1994, 2005 and 2015. Today, with a two-thirds, you must show your economic model, your theory of development, in this Budget. We do not yet see your model realized. Thank you.