The Hon. (Dr.) Nihal Abeysinghe

¶ 01 Hon. Presiding Member, we are now at the end of Day 6 of the Second Reading Debate on the Appropriation Bill, 2025. We are discussing the economic programme of the NPP Government’s Budget. In recent days we discussed how the Government will raise revenue and implement our “Prosperous Country – Beautiful Life” programme.

¶ 02 An Opposition Hon. Member asked how we will turn the country around within six months. He seems to forget we inherited a bankrupt country—recognized as such since April 2022. With over USD 100 billion debt, unable to service interest, we were bankrupt when President Anura Dissanayake took office on 14 November. But today we are no longer in bankruptcy. We have completed the international sovereign bond restructuring. Fitch and Moody’s have upgraded our ratings. Internationally, confidence in Sri Lanka is returning; tourism arrivals increased last quarter; halted foreign investments are resuming—Japan has restarted 11 projects.

¶ 03 This Budget identifies opportunities for growth, provides space and stimulus for investors, sets Government priorities and shows taxpayers how money will be spent. The preface clearly states that failed economic policies, unlimited borrowing, asset sales, and indiscriminate tax concessions led to bankruptcy, along with irresponsible fiscal management. Our Budget addresses the social crises created by the economic collapse.

¶ 04 The Opposition claims our proposals do not align with NPP policy. Let me show alignment: - Encouraging industry, services, and agricultural production is a core principle. - Broadening participation in economic activity, especially supporting SMEs, is a core principle. - Ensuring fair distribution of economic benefits is a core principle. - Supplying essential goods and services continuously at fair prices and quality is a core principle. - Managing demand–supply and prices: we will regulate where necessary—transport, food security, electricity.

¶ 05 Past Budgets promised handouts to win elections—raises, subsidies, money printing. Even then-President Ranil Wickremesinghe said spending should match revenue, but their practice differed. Our “Prosperous Country – Beautiful Life” policy matters here because our Budget addresses diverse sectoral needs.

¶ 06 A long-time SLFP/UPFA activist friend who joined the NPP told me these are the best proposals he has seen in years. A senior medical professor also said, for the first time, there is a clear programme for orphaned children.

¶ 07 UNDP’s September 2023 National Citizen Survey (with Oxford Poverty and Human Development Initiative) found 55.7 per cent of the population face multidimensional vulnerabilities—about 12.3 million people, with 10.1 million in rural areas. Poverty doubled in 2023, with 26 per cent below the poverty line—living on less than USD 3.65 per day. Therefore, this Budget focuses greatly on the most vulnerable.

¶ 08 We have allocated Rs. 232 billion for social protection: Rs. 160 billion for vulnerable groups, Rs. 36 billion for low-income disabled families, Rs. 28 billion for low-income elderly families, and Rs. 4.5 billion for persons with kidney disease.

¶ 09 We have allocated Rs. 604 billion to health—the highest ever—to improve public health services and reduce medicine prices over time. We must also address brain drain in health—doctors and trained staff leaving—by using these funds to resolve their issues and retain them.

¶ 10 We have allocated Rs. 619 billion to education—the highest in recent history—because education lifts children from poverty. Many schools lack science streams; in some districts there is no Tamil-medium A/L. These funds address such gaps.

¶ 11 We will spend Rs. 2,254 billion (aggregate sectoral total) to modernize agriculture for food and nutrition security; strengthen the public service with digitization to improve efficiency, curb corruption, ensure fiscal transparency, promote opportunities, and improve ICT.

¶ 12 Senior citizens’ interest support will be increased from July. We are allocating 4 per cent of GDP to capital expenditure to strengthen SMEs, public transport, rural development, agricultural revival, and research.

¶ 13 We believe this is the Budget people have long awaited. Over the next eight months we will lay the foundations to robustly implement our policies over five years and raise living standards significantly. Thank you.

¶ 14 It being 6.00 p.m., Business was interrupted, and the Debate stood adjourned.

¶ 15 Debate to be resumed on Tuesday, 25th February, 2025.