The Hon. S.M. Marikkar

¶ 01 Hon. Chairman, I move that, at Committee Stage today (2025.11.24), under Heads 117, 306, 307, 336, 123, 309–311, and 332, a sum of Rs. 10 be reduced from each Programme’s recurrent and capital allocations, in keeping with tradition.

¶ 02 A Budget is not a mere set of numbers; it is to achieve targets. The three ministries under debate are infrastructure-related, where targets require efficiency, discipline, and commitment. In 2025, the Ministry of Transport, Highways, Ports and Civil Aviation was allocated Rs. 489,230 million, but only Rs. 240,805 million (43%) was utilized. For 2026 they have Rs. 446,000 million. We believe—with efficiency and commitment—they can meet targets. We, in Opposition, do not seek collapse for political gain.

¶ 03 The Ministry of Urban Development, Construction and Housing, including the National Water Supply and Drainage Board, was allocated Rs. 104,532 million in 2025; progress reported is Rs. 36,818 million (35%). For 2026, Rs. 103,500 million is allocated. With such low progress, we urge accelerating to at least 85% in the coming year.

¶ 04 Looking at RDA performance: of Rs. 6,100 million for expressway development, only Rs. 2,400 million (39%) was used. Other road development shows 79% progress, which is better. Road widening and improvement shows 12.58%, and bridges 16%. Officials must be supported where needed, but inefficiency must be addressed. RDA engineers are underpaid and are resorting to trade union action. I table their letter and urge the Minister to address engineers’ and other staff concerns.

¶ 05 We need an integrated master plan for inter-provincial, urban, and metropolitan transport—expanding expressways, widening existing roads, and establishing multimodal transport including rail. Buses alone cannot serve commuters.

¶ 06 Past administrations took high-interest loans for expressways without considering repayment capacity. We propose PPPs for the Ruwanpura, Northern, and Dambulla expressways, with Government handling land acquisition and awarding projects after proper evaluation. Like Changi Airport, after concession periods, assets remain with the State.

¶ 07 Traffic congestion costs are estimated at Rs. 1.5 billion per day—over Rs. 500 billion annually. While importing 220,000 vehicles raised about Rs. 650 billion in one-off revenue, infrastructure must match increased vehicle numbers.

¶ 08 We must decisively improve the seven main corridors into Colombo. Several projects started under the Yahapalana Government were halted by the subsequent administration: e.g., the Malabe–Colombo Fort Light Rail Transit was stopped—possibly because it did not offer room for “commissions.” Likewise, the Kelani Valley railway upgrade has stalled; responses are evasive. The New Kelani Bridge master plan included links to Orugodawatta, Rajagiriya (near HSBC), and Athurugiriya; these were delayed due to vested interests.

¶ 09 On the MCC Compact: the Opposition then protested, foregoing USD 500 million that would have improved 332 Colombo traffic junctions; by now, that project could have been completed, easing congestion. Ironically, many things once opposed are now being pursued.

¶ 10 We also seek updates on the East Container Terminal tender. I was told in this House that 50% of works would start in July and that I would be invited. I was not invited; I do not know if works began. The President promised to operationalize ECT to handle 11.5 million TEUs by 2030. Meanwhile, the Chairman seems preoccupied with political vendettas.

¶ 11 Galle Port must be made profitable; the Port Authority has yet to deliver.

¶ 12 On urban development: before 2018, construction contributed nearly 8% of GDP, but COVID and the crisis collapsed the sector. UDA has major revenue potential. Transaction costs are heavy: 4% stamp duty on land purchase; VAT 18% on sales; another 4% stamp duty on transfer; 30% corporate tax; 15% dividend tax; personal income tax up to 36%. Around 40% of project cost recycles to the State. If cement prices are reduced, the sector can revive and boost revenue.

¶ 13 UDA must help service external debt by mobilizing foreign exchange through development. In Colombo 01–15 alone, about 800 acres remain, but are not clearly zoned or parcelled for relocation, public, PPP, or UDA-led builds. The former Chairman proposed vertical integration; we must implement globally common 80:20 urban ratios. Colombo’s approximately 53,000 underserved housing units should be systematically relocated, freeing central land for economic development while giving residents dignified housing and access to quality schools, jobs, hotels, and hospitals they are currently excluded from. Let us embark on a 5–15 year programme to reduce inequality.

¶ 14 Construction costs here are among the region’s highest—about USD 1,200 per square meter. While the State needs revenue, we must also incentivize investors and builders to develop infrastructure, which in turn expands the tax base.

¶ 15 Finally, the Budget (p. 418) allocates Rs. 15,000 million to build housing for urban low-income families around Colombo. Spread over 53,000 units, this is only about Rs. 300,000 per unit—clearly insufficient unless phased (e.g., 15,000 units first). Let us be realistic and non-partisan in Committee.