The Hon. (Dr.) Harsha de Silva

¶ 01 [4.16 p.m.]

¶ 02 Hon. Presiding Member, in economics there’s the “broken window” idea: when a window is smashed and replaced, measured activity increases, but you still have only one window. Real progress is when you end up with two windows—i.e., add net capacity. Rebuilding roads and hospitals only restores the status quo; we must also create more.

¶ 03 It is said no debt will be taken; in fact, Rs. 374 billion in debt is being taken. Some planned projects will be foregone to do this rebuilding. With poverty around 25%, Government must prioritize properly. Consider what the State must do and what can be done with the private sector via PPPs. For example, SriLankan Airlines may need Rs. 100 billion—consider private participation. The Electricity Act was rolled back, limiting private participation in transmission and distribution; we should enable it to expand infrastructure without solely using public debt.

¶ 04 Recently we visited Hanguranketha, Rikillagaskada, Mathurata, and Ketayapathana—about 300 people gathered; many homes were destroyed, others intact but unsafe to return. Some officials tell them to go back. Under President Kumaratunga, the National Involuntary Resettlement Policy was introduced; we should now make it law—no forced returns; protect human rights; understand who is affected and restore their livelihoods where they resettle.

¶ 05 I previously said the Treasury has funds—due to tight taxation and unexpected vehicle import-related revenues. Spend wisely. By 2027, another Rs. 500 billion may be needed; hence, prioritization is crucial.

¶ 06 Verité Research noted that even a US$200 million quick IMF loan could cost ~6% interest; our attempt to float domestic dollar bonds raised only US$37 million for one-year and US$13 million for two-year; none for three-year—so market appetite is limited. Therefore, the “Rebuilding Sri Lanka” fund must be properly established by Parliament. I wrote to the President yesterday. Currently, donations go to the Deputy Secretary to the Treasury’s account; that is fine but is not the legally constituted Fund. Bring it to Parliament and formalize it.

¶ 07 Finally, consider the rupee: it is around 313–314, under pressure. All these issues are interconnected. The Government should do what it can and leverage the private sector where possible, with clear priorities. Thank you.