The Hon. M. Nizam Kariapper, PC

¶ 01 Hon. Deputy Chairperson of Committees, I rise to contribute to this Adjournment Debate on the Mid‑Year Fiscal Position Report – 2024. The Report notes 5 per cent growth in H1 2024 after a –7.3 per cent contraction in 2023. However, agriculture grew only 1.4 per cent despite its importance to food security.

¶ 02 Exports rose 6.1 per cent to USD 8.5 billion; imports rose 10 per cent, widening the trade deficit to USD 3.57 billion from USD 2.96 billion. Tourism earnings rose 66.1 per cent to USD 2.17 billion; remittances rose 11 per cent to USD 4.29 billion. These sectors remain vulnerable to global shocks.

¶ 03 Government revenue rose 41.5 per cent to Rs. 1.86 trillion, imposing heavy burdens. Tax revenue rose 42.6 per cent to Rs. 1.71 trillion, led by VAT and Excise. VAT is now 18 per cent with many exemptions removed, even on essential items—contrary to promises. Excise on petroleum rose 200.8 per cent, yet reduced global oil prices were not passed on. The Government continues policies it once condemned, including a Rs. 65 per kg tax on rice imports, far from the “affordable” prices promised before harvest.

¶ 04 Key challenges: a widening trade deficit; debt sustainability under high public and external debt; and sustaining growth while inflation has peaked and stayed there.

¶ 05 On roads and bridges: Rs. 95.1 billion was spent (slightly less than Rs. 99.9 billion in 2023). Rs. 20.6 billion was allocated to expressways, with Rs. 14.4 billion to the Central Expressway; the critical Kadawatha–Mirigama section remains incomplete, vital for linking Colombo to the Central, North, North‑Central and East. I urge using the President’s visit to China to seek a special grant to expedite completion. Maintenance spending rose by Rs. 7.2 billion, yet rural roads saw reduced allocation. A bridge near the South‑Eastern University in the East was washed away due to weak infrastructure; no funds were spent on such bridges. A significant part of the Rs. 43.1 billion road budget went to loan repayments, underscoring fiscal vulnerability.

¶ 06 It is ironic that this Government presents the previous regime’s fiscal achievements as its own after having criticized them. I recall the President’s past words questioning whether we are part of the IMF’s programme or whether our national plan integrates with it. Another current Minister once said we get only USD 60 million a month from the IMF while remittances are USD 350 million and tourism USD 250 million monthly, “without conditions.” Now, nothing has materialized accordingly.

¶ 07 Finally, human rights rankings impact economic strength. The Rohingya are among the most persecuted minorities. The non‑refoulement principle prohibits returning individuals to places of persecution or torture. I also refer to Article 8 of the UN Declaration on the Protection of All Persons from Enforced Disappearance. Do not treat refugees as victims of “human trafficking.”

¶ 08 Thank you.