The Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law

¶ 01 Hon. Deputy Speaker, the data show that by mid-2024 Sri Lanka had achieved a degree of stabilization. Since the present Government assumed office, the stabilization process has advanced rapidly, and investor confidence has improved. With the completion of external debt restructuring during 2024, we now have space to keep debt service within limits in 2025—an achievement of the Government.

¶ 02 There is debate on “credit” for the recovery. That is fine. But as Hon. Najith Indika said, we must also read the story behind the data: it is the people who paid the heaviest price. For example, in the first six months of 2024, VAT revenue rose by 84 percent and personal income taxes by 43 percent—paid by ordinary working people. This meant reduced capacity for daily expenses: children’s education, healthcare, rent, and family support; many households pawned assets. The burden fell heavily on women shouldering unpaid care work as public spending was cut.

¶ 03 The report details sectoral spending. I draw attention to education, health, and transport. Welfare spending for schoolchildren in the relevant period fell by about 30 percent compared to 2023; spending on school textbooks fell by about 70 percent. When the State cuts these, mothers absorb the cost—some leaving jobs to care for children, some seeking risky overseas work.

¶ 04 Health spending fell by about nine percent. We all know the service issues—medicine shortages and staff departures. The burden again fell on ordinary people, often women, reducing other expenses due to higher taxes and taking on unpaid care for elders and children. Unpaid care work by women has undoubtedly increased.

¶ 05 Further, a December 2024 Human Rights Commission report on “manpower” (labour outsourcing) shows that due to the crisis, many—especially women—shifted into manpower work, which has fewer labour protections, because they could not afford childcare/day-care. Older women too turned to such jobs. Thus, while we thank development partners, the IMF, political leadership, and public officials, we must equally recognize ordinary people—workers, mothers, caregivers—who silently bore this burden without official appreciation.

¶ 06 Now that an economic recovery is underway, the Government has a responsibility to channel its dividends back to those who made the sacrifices—protect social welfare, re-integrate those pushed out of the economy, especially women, SMEs, workers, and the lower-income. That must be our production and economic planning focus going forward. Thank you, Hon. Deputy Speaker.