The Hon. Arun Hemachandra – Acting Minister of Foreign Affairs, Foreign Employment and Tourism

¶ 01 Hon. Presiding Member, emerging formally from bankruptcy has enabled the Finance Ministry and especially the President to present a noteworthy Budget. One main cause of our bankruptcy was the breakdown of fiscal discipline. In a resource-rich country, this should never have happened. To rebuild, we need a strong public service.

¶ 02 On vehicle permits: there have been calls to reintroduce duty-free permits. Historically, since around 1977, these permits were non-transferable and time-bound. But from 2012 onward, practices changed to allow transfer immediately upon first registration. In my early years, while apprenticing in a vehicle sales business, I saw blank signed transfer forms and stamped letterheads from high ministers—an alarming and unethical culture that evolved politically. We should end this politicized permit regime to restore stability and integrity.

¶ 03 On taxes applicable to a typical Land Cruiser import, an illustrative calculation shows the CIF at roughly Rs. 25.755 million (assuming USD 85,000 at around Rs. 303), with excise, import duty and surcharge, VEL, luxury tax, and VAT bringing the total tax component to about Rs. 90.082 million. When a permit is sold, the state loses enormous revenue, while the beneficiary often does not even use the vehicle and bears no maintenance. Under the proposed approach, maintenance responsibility lies with the designated official user, and vehicles return to the pool after the term.

¶ 04 I also note that, according to information I hold, between 2015–2019, 18 current MPs transferred their permits—most of them now in the SJB. Whether or not it was strictly illegal, there is a profound ethical question. We must reform this culture if we are to build a cleaner, stronger economy.

¶ 05 Regarding education allocations, claims that we did not allocate even 1% are false. As a share of GDP, education allocations were: 2015 – 2.14%; 2016 – 2.06%; 2017 – 1.97%; 2018 – 1.88%; 2019 – 1.79%; 2020 – 1.61%; 2021 – 1.68%; 2022 – 1.39%; 2023 – 1.51%; 2024 – 1.8%; 2025 – 2.1%. For 2026, we have allocated 2.5%—the highest in a decade. From this new beginning, we aim to reach 6% over time.

¶ 06 On the plantation sector, criticism of the Rs. 200 government contribution to support wage increases is misplaced and, at times, tinged with prejudice. Plantation communities have contributed immensely to our economy for nearly two centuries, including in tea—the leading export crop. Supporting them is fair and necessary.

¶ 07 This Budget is designed to ensure stability and growth. I thank the Secretary to the Treasury and all who contributed. Thank you.