The Hon. Ravi Karunanayake

¶ 01 That is okay, Sir.

¶ 02 I have been elected to Parliament six times. I thank all UNP supporters who voted under the “gas cylinder” symbol of the New Democratic Front. I also extend heartfelt thanks to the Lalith Front’s Executive and Working Committees for nominating me, a UNPer, as National List MP of the NDF, enabling me to represent this Parliament.

¶ 03 Under Act No. 44 of 2024 on Public Financial Management, today’s Vote on Account is presented. The Tenth Parliament has been formed in a unique way by the people; we must learn from that message, renew ourselves, and reaffirm public confidence. Maintaining quality in Parliament is essential; over 27–28 years I have seen slippage, which we must collectively correct.

¶ 04 After the April 2022 default, the country negotiated with the IMF to restructure debt, reaching agreement to resume payments from 2028—a national achievement. As Hon. Anil Jayanthe and Hon. Sunil Handunnetti noted, we must evaluate objectively and understand how to move forward. This Government inherited a defaulted economy, unlike previous transitions. The present Secretary to the Treasury is highly competent; instead of a bank overdraft of Rs. 800 billion, there is a positive balance. We need balance and pragmatism.

¶ 05 Historically, around 455 SOEs accumulated losses—about Rs. 900 billion annually across 15–20 years; in 2022, losses were Rs. 800 billion; in 2023, a Rs. 450 billion profit; by 2024 to date, Rs. 300 billion profit—evidence of improved financial management.

¶ 06 On the IMF: President Anura Dissanayake stated on 21 November in Parliament that the IMF programme brought by Ranil Wickremesinghe would be continued—there is no alternative. You can delay for a time, but not forever. The UNP’s contribution was to pursue good traits, correct mistakes, and move forward. UNP-era achievements—from Mahaweli, the open economy, Mahapola scholarships, education reforms, mobile telephony, industrial zones, ports, hydro projects like Randenigala and Victoria, to Maduru Oya—are tangible. We can criticize, but must also keep the national interest in view.

¶ 07 As Finance Minister, I negotiated the 16th IMF programme. It was not strictly necessary, but we sought fiscal discipline. The IMF will try to have its say, but the Government must have its way. For example, if the target is revenue of 15 percent of GDP, let us design the path ourselves—our Ministry has capable officers. In 2015, when I took Finance, revenue was 8.2 percent of GDP; in 30 months, we raised it to 15 percent—not by “doing what the white man said,” but with Sri Lankan solutions.

¶ 08 PAYE as configured is unfair. If someone says we need Rs. 160 billion, give us the task; we can raise it more effectively. This is the first time a Vote on Account is used lawfully under the new PFM law—an improvement driven by Ranil Wickremesinghe, correcting past weaknesses. If Sri Lanka is the patient and the IMF is the surgeon, the patient is still on a drip. The operation alone is not the cure; we must restore purchasing power, which was crushed when the rupee fell from 130–150 to 376 after default.

¶ 09 There is no shortcut. Do not signal left and turn right; continue on this path. You have accepted the IMF because there is no alternative; amendments are possible, but do not cut revenue—raise it, then deploy gains for other priorities.

¶ 10 By 17 December, you must table the 2025 Budget with revenue proposals to legalize the programme. After the Budget—February/March—we can question and critique constructively.

¶ 11 For 2025, keep inflation near 5 percent and a primary surplus around 2.5 percent so that, post‑2028, debt dynamics improve. GDP is around Rs. 33 trillion; revenue should be 15 percent. Reserves are about USD 6 billion; we need at least USD 15 billion by 2028—i.e., add roughly USD 3 billion per year—or we face another dark era.

¶ 12 In 2024, estimated revenue was Rs. 4,200 billion; actual is about Rs. 3,800 billion—an Rs. 400–500 billion shortfall. For 2025, 15 percent of GDP implies about Rs. 4,500 billion; aiming for Rs. 5,000 billion is not easy—you need a roadmap.

¶ 13 Expenditure next year will be around Rs. 9,000 billion. This year’s Rs. 6,800 billion was topped up by a Rs. 250 billion Supplementary Estimate, also heading toward Rs. 9,000 billion. Of that: interest ~Rs. 2,000 billion; capital ~Rs. 800 billion; salaries ~Rs. 1,200 billion; pensions ~Rs. 300 billion; Aswesuma and other welfare ~Rs. 205 billion—leaving a gap of about Rs. 4,000 billion if revenue is Rs. 5,000 billion. Bridging that requires discipline.

¶ 14 We have about 1.6 million in the public service. Policies must be carried through the public service. However good your ideas, after six to nine months, implementation difficulties emerge—learn from experience.

¶ 15 Our tax base: labour force ~7.5 million; only about 98,000 pay corporate tax; 851,000 pay Individual Income Tax; 17,000 pay PAYE—clearly inadequate. When I was Finance Minister, there were 1.7 million files; today about 0.9 million—this must be rebuilt. Do not dismiss the UNP: despite mistakes, the service to the nation is substantial.

¶ 16 On the external account: the IMF suggests reopening vehicle imports. If so, do it cautiously; vehicle imports may cost USD 1–1.5 billion; the rupee could slide; manage carefully, perhaps allowing only dollar-paid imports, with controls on where those dollars are sourced. Strengthen exports, remittances, FDI, and tourism. From 2028 to 2033, an additional USD 3 billion falls due beyond current debt service; another USD 3 billion thereafter—build buffers now.

¶ 17 On loss-making SOEs: your trajectory implies privatizing SriLankan Airlines. If it yields no net benefit and incurs continuing losses, privatize it with safeguards.

¶ 18 Also manage inflation from the supply side—do not only compress demand. Treat SMEs humanely; address NPLs; support viable firms.

¶ 19 Let us not repeat Greece—prolonging a three-year adjustment into twenty. Prepare now for 2028 debt service. As Abraham Lincoln said, to heal the nation’s wounds, we must move together. Thank you. God bless.