The Hon. (Dr.) (Ms.) Kaushalya Ariyarathne - Deputy Minister of Mass Media

¶ 01 Hon. Presiding Member, thank you for the time.

¶ 02 Before my main remarks, two responses. Some are upset that the President used the “bundu” metaphor. The Opposition has misunderstood it. He did not say this is a nation of gangs; he said the country had been run like a gangland — and that we took over a gangland and are working to make it a country again. He also clearly stated how hard we have worked to put it right. On fuel, Rs. 47.6 billion has been allocated — I will elaborate.

¶ 03 Second, Hon. Dayasiri Jayasekara said that even after three months the Government has failed to resettle all affected by the cyclone. In fact, 98% received Rs. 25,000; 83% received Rs. 50,000; and in several districts the President personally launched house reconstruction programmes. Perhaps the Hon. Member forgets: in the 2016 floods, many in Kaduwela told us even in 2024 they had not received the Rs. 10,000 aid promised then.

¶ 04 Today we are to approve a Regulation under the Foreign Exchange Act, No. 12 of 2017. In 2020, when the economy fell into a balance of payments crisis, capital outflows were restricted. From 2023, under an IMF programme, we began a sequenced relaxation as the economy strengthened and reserves rebuilt. Accordingly, the permissible annual payments through Foreign Currency Accounts by resident businesses for investments abroad are increased from USD 200,000 to USD 500,000; and personal capital transactions from USD 20,000 to USD 25,000.

¶ 05 All this is happening as the economy expands and strengthens. By end-2025, reserves reached USD 6.8 billion. We did not do this by closing markets but by expansion — including reopening vehicle imports. Last year, LCs of USD 1.8 billion were opened; about USD 1.2 billion worth of vehicles were cleared; and Rs. 904 billion was collected in special vehicle taxes in 2025. Total outflow for vehicles is USD 2.4 billion, while customs revenue was Rs. 2.25 trillion. This demonstrates that opening markets and integrating globally, with proper management, can fund social support — including cyclone relief — from enhanced revenues.

¶ 06 Our budget priorities are fourfold: eradicating rural poverty; free health; free education; and public transport. With enhanced revenues, we raised public sector wages, supported private sector wage improvements, increased estate workers’ pay, expanded welfare, and funded disaster relief.

¶ 07 Recent data (Jan 2026): total goods and services exports USD 1,883 million (7.1% YoY), remittances USD 751 million, tourism USD 378 million, and mobile account balances up USD 370 million. Yet the Middle East war poses external risks: higher oil prices, lower remittances, and potential loss of tea markets where 45-50% of our tea goes, and tourism where about 60% arrivals come via that region. The Government is managing these with both short- and long-term measures.

¶ 08 On fuel storage: had we rehabilitated tanks earlier, today our storage capacity would be higher. As the President said, we are increasing storage capacity by 100%. We have allocated Rs. 47.6 billion, including Rs. 31.9 billion for tank rehabilitation, pipelines, and new storage. Some projects have commenced; some are at tender; some start this year. This is how one turns a gangland into a functioning country. We hope, under international law, the Middle East crisis will subside soon; we pray for world peace.

¶ 09 Thank you for the time.