The Hon. (Dr.) Najith Indika

¶ 01 [11.11 a.m.]

¶ 02 Hon. Speaker, at the time of the Adjournment, I move the following:

¶ 03 “Successive Governments since Independence implemented destructive political and economic decisions and actions which culminated in economic, social and political crises in the country, leading even to a suspension of Government debt service. As a result, hundreds of thousands lost employment and the entire economy was dragged into crisis. While our Motherland was thus pushed into a tragic destiny, many of our neighbouring countries, with long-term planning, achieved significant economic progress and moved ahead of us.

¶ 04 Instead of sacrificing the economy and the future of all citizens for narrow political ambitions, we must, with the contribution of all, steer Sri Lanka towards a new era of revival under visionary and steady political leadership with an inclusive future outlook, ensuring sustainable economic growth so that every citizen can live a dignified life.

¶ 05 The Mid-Year Fiscal Position Report presented to Parliament by the Minister of Finance under the State Finance Management Act, No. 44 of 2024, shows where we stand now and reflects the foundation for commencing the management of the national economy.

¶ 06 In delivering ‘A Prosperous Country and a Beautiful Life’ to all, the basic foundation of macroeconomic stability is now being established. In steering the economy towards achieving sustainable development goals with equitable distribution of benefits to all in society, support from all—Government and Opposition—is essential.”

¶ 07 Hon. Speaker, this is on the Mid-Year Fiscal Position Report. It is a 44-page report, issued in October. It presents data analysis of the economic situation by mid-2024, compared comparatively with 2023. I will not go into lengthy detail.

¶ 08 The report shows, relative to 2023, that by mid-2024 economic growth improved: from negative 7.3 percent to positive around five percent. Agriculture declined from 2.9 percent to 1.4 percent; industry, from negative 18.9 percent to positive 11.4 percent; services grew; inflation fell from 1.3 percent to negative 0.5 percent; the overall deficit narrowed from Rs. 1,242 billion (negative) to Rs. 598 billion (negative); total revenue rose from Rs. 1,314 billion to Rs. 1,860 billion; tax revenue increased from Rs. 1,198 billion to Rs. 1,709 billion—about 42 percent growth. Thus, by mid-2024, indicators improved over 2023.

¶ 09 I wish to connect this with the collapse in 2022. In April 2022, the country declared bankruptcy. We speak here of the situation exactly two years after, by mid-2024. We all recall the hardship: depleted reserves, daily life disrupted, inability to travel to work, fuel queues, and a people’s struggle. The gravest aspect was the loss of the livelihoods and life standards of ordinary people across urban middle-income and rural poor communities; private economic activity and small enterprises collapsed.

¶ 10 This was the cumulative result of decades of policy and political decisions—particularly after 1977—and not a natural disaster. It was man-made. Those who made those decisions should feel remorse and shame, including over the 2015 Central Bank bond scam which undermined market credibility, as noted even by the IMF in 2016, leading to higher borrowing costs thereafter. Later, tax cuts of massive scale within months after a presidential election further damaged fiscal stability. As Japan’s Ambassador also observed in an interview published on 23 October 2024, governance and corruption issues undermined the country. I table that report.

¶ 11 The people paid the price in 2023–2024. We must remember deaths in fuel queues in 2022, families fractured by emigration, medicine shortages in hospitals, and increased school dropouts. Poverty rose from 14.3 percent (2019) to over 25 percent by 2024; roughly one in four people living under the poverty line.

¶ 12 Health indicators worsened: untrained deliveries increased from decimal fractions up to over one percent; low birth weight rose from 12.7 percent (2019) to 14.6 percent (2022) and 14.8 percent (2023); underweight among 1–2-year-olds rose from 11.4 to 13.7 percent; infant mortality and under-five mortality increased from around 9–10 to about 10–12 per 1,000. Brain drain intensified: specialist doctors numbered 2,278 and medical officers 20,911 as of December 2022, but applications for overseas exams surged—AMC applications from Sri Lanka rose from 725 (2021) to 1,750 (2023), akin to an entire annual doctor cohort; over 5,000 doctors have sat foreign qualifying exams.

¶ 13 Despite current stabilization, growth must include all 22 million people, particularly the lower-income groups. Our Government’s direction and recent measures—the PAYE adjustments, Rs. 6,000 support for school stationery, and others—are oriented to that end. We commit to ensuring that by 2025–2026 the data will reflect real improvements for the people. Thank you.