Thilanka U. Gamage

¶ 01 Madam Deputy Chairperson, the Opposition Leader cited Rs. 250 per kg as big onion production cost; that is inaccurate. With improved yields this year, costs are closer to Rs. 90–100 per kg. The economy is stabilizing—exchange rate steadied, inflation single-digit, growth and revenues improving, reserves rising.

¶ 02 On Excise, long-standing weaknesses allowed non-payment under political patronage. Arrears of Rs. 10.5 billion remain. The new rules do not raise taxes but enforce timely collection—pay within a month, else 3% monthly late fee; beyond 90 days, cancel licences. Consumers pay at purchase; yet some bonded warehouses delayed remitting for months. These rules correct that.

¶ 03 On SCL, we raise big onion levy from Rs. 10 to Rs. 50, and potato from Rs. 60 to Rs. 80, to protect local farmers. Domestic big onion output fell sharply from about 65,907 MT (2021) to around 5,084 MT (2023), increasing imports and prices. Under this Government, prices have been stabilized, and we expect about 50,000 MT this year with harvests improving. Effective protection increases value added for local producers and helps them recover costs. With production costs around Rs. 90–100/kg, wholesale can stabilize at Rs. 140–145, protecting farmers while balancing consumer interests. About 20% of annual need is domestically produced; policy must encourage local production while meeting remaining demand via imports prudently. The Food Policy and Food Security Committee has deliberated these measures to safeguard the economy, jobs, foreign exchange, and price stability.

¶ 04 Thank you.