The Hon. (Prof.) Ruwan Ranasinghe - Deputy Minister of Tourism

¶ 01 Hon. Presiding Member, I wish to begin with a quote by Michelangelo: “The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” This applies to our country and economy—and to the petty mindset of our Opposition. They come in the morning to drop a small voice-cut or stage a co-op victory and stir noise, obsessed with trivialities. We find a petty Opposition with petty goals and a petty mindset. But we have much bigger and wider aspirations: to build this country into a thriving nation and create a beautiful life for every citizen. This Budget presented by our President is the stepping stone.

¶ 02 This Budget is historic because it targets every segment—people in the far North, in the hills, preschoolers, schoolchildren, university students, SMEs, large entrepreneurs, foreign investors, youth, prisoners, and street children—bringing them into economic activity.

¶ 03 Some in the Opposition ask about our economic vision. As Minister Lal Kantha said, our core aim is economic democracy—creating economic opportunities.

¶ 04 A previous speaker alleged the Budget neglects the North. I must deny that. Earlier Governments even avoided discussing the North while playing racism in the South. In this Budget we fund bridges, roads, and tourism infrastructure in the North. Moreover, Rs. 200 million is allocated to enhance library facilities nationwide, and half—Rs. 100 million—is for the Jaffna Library, burned in the past by the masters of some Opposition Members here. We have eradicated racist-based allocations.

¶ 05 Two key targets: first, align with the IMF framework—yes, we are within it. But why did we have to go to the IMF? Because your Governments drove us there. Second, nation building. By 2028 we must recommence debt service; thus, we must expand the economy.

¶ 06 Significant features: - Recognizing open, price-driven markets. - Regulation: the Government must regulate where needed. - Intervention: the Government will intervene in economic activities when necessary. - Government production, manufacturing, and distribution participation.

¶ 07 This is the economic democracy highlighted in the Budget. The President also spoke of lost decades. Many economies went bankrupt due to various reasons; ours did due to nasty politics.

¶ 08 We boldly project 5 per cent growth this year, just three months after taking over.

¶ 09 We can learn from South Korea (1997 crisis, recovery by 2000 via expansion, export orientation, strict regulation) and Chile (2010 crisis, back on track by 2013 similarly).

¶ 10 Opposition Members now shout that funds have not been allocated to this or that sector. Our proposals follow our long-term plan, to be achieved step by step. We must spend Rs. 3 trillion on interest—a huge burden arising from the unproductive, destructive projects and debts your shifting alliances undertook—towers and conference halls that do not yield returns. Within just a few months, we have managed amidst these challenges.

¶ 11 We increased public sector salaries meaningfully across sectors despite the difficult situation. In my 15 years in public service, annual increments were never raised; in our first Budget, we raised the annual increment rate by 80 per cent. When we were in universities, we asked then President Ranil Wickremesinghe to reduce PAYE; he told us to tell the IMF. Teachers and principals were assaulted on the streets when they asked for raises. He said raising their pay from then 18 per cent VAT to 22 per cent was needed—then, with his appointed Central Bank Governor, he played games at the Central Bank. We are rebuilding that broken economy.

¶ 12 We have imposed no new taxes on the general public. But to those in ties shouting from business fronts: we will collect the taxes you evaded; no abuse of State power to dodge taxes will be allowed.

¶ 13 On senior citizens’ fixed deposit interest: when the Rajapaksa–Wickremesinghe Government was in power, gratuities placed in fixed deposits by lifetime public servants earned barely 1–2 per cent, while the Presidential Fund and compensation schemes sprayed billions elsewhere. We decided to raise the senior citizens’ FD interest rate by 3 percentage points from 1 April.

¶ 14 SriLankan Airlines: those who now shout once ran it for personal theatrics and junkets. We are allocating Rs. 20 billion to revive it as part of broader recovery measures.

¶ 15 Tourism: this sector bravely supported short-term stabilization. We propose a contributory pension scheme and a social security fund for sector workers. We will identify 100 destinations, allocate about Rs. 10 million each, and promote them globally. Using self-financing institutions, beyond the current Rs. 500 million, we aim to mobilize an additional Rs. 5–6 billion this year for development and promotion.