The Hon. Ravi Karunanayake

¶ 01 I take this opportunity to raise a matter. I am not taking time from my own slot due to the change at the Chair, I believe.

¶ 02 I wish to recall another matter. In 2015, when I was the Minister of Finance, for the first time in the world we introduced an insurance scheme to protect our country against disasters. Former Minister Ranjith Madduma Bandara and our MP S. M. Marikkar also referred to it. The World Bank commended us for it as well. We had created a mechanism to insure Sri Lanka against all natural disasters. I believe wrong information had reached the President through certain officials. I expect to table the invoices of that insurance company.

¶ 03 When we started this insurance programme in 2016, by paying a premium of Rs. 336 million, we received benefits of about Rs. 5 billion (Rs. 5,000 million). We did this through the National Insurance Trust Fund (NITF). Since the process implemented through the NITF was successful, they later went with others and eventually it was implemented in a distorted manner.

¶ 04 As Minister of Finance in 2015, 2016 and 2017, I implemented it successfully, but after I left office, this insurance scheme had been altered. I kindly request the President to review this. If this insurance scheme existed today, the country could have obtained payouts via a reinsurance company. MP Ranjith Madduma Bandara pointed out how much we could have paid for losses through this scheme. MP S. M. Marikkar highlighted a similar situation in Kolonnawa.

¶ 05 As I recall, we paid the premium on 1 April 2016. But by 18 May 2016, floods occurred. By 25 May 2016, we had been able to settle Rs. 2 billion in claims. If the country had been insured against disasters, it would have given us significant resilience.

¶ 06 Not only that, for a developing country like ours, we can obtain premium funding or premium financing through this so that we would not even lose the premium we pay. With your permission, I would like to table two letters issued by the National Insurance Trust Fund Board and Allianz SE Reinsurance Branch, Asia Pacific.

¶ 07 Sir, after this disaster or after Cyclone Ditwah, foreign institutions were able to estimate the damage. The United Nations first presented the physical damage based on geological surveys and satellite imagery. Because the devastation was so extensive, they could do it swiftly; no country can do that alone. Then the World Bank came in, indicating the collateral damage. But I call upon the Government to ensure that, before foreign teams come to Sri Lanka, our local teams make the estimates. We should first have the national estimate from our teams and then invite them. If outsiders undervalue, the country suffers.

¶ 08 When a disaster of this nature happens, the collateral damage—deaths, roads, buildings, houses, hospitals, schools, etc.—is immense. In this disaster, there is structural and economic damage. We must look at fiscal reconstruction, bring back lost capital, achieve macroeconomic stability, and restore liquidity now.

¶ 09 Rebuilding Sri Lanka has to be done together. Set aside political differences and move forward for a forward-looking future. In capital restoration, we must ensure lost capital is brought back.

¶ 10 [At this stage, the Hon. President Anura Kumara Dissanayake entered the Chamber.]

¶ 11 We need to act to recover the lost capital and replace the capital stock. We can seek grants or other assistance to retrieve the lost capital, but it must be done in a way the country can sustain. First and foremost, estimates must be made by a domestic team.

¶ 12 Since the President is in the House, I kindly request this: all estimates should be done in US dollars. When debating the Budget, the rupee was Rs. 300 per dollar; now it is Rs. 313. If we estimate in rupees at a time like this, the country will lose. Therefore, going forward, estimates must be in dollars. Thereafter, at the international level—whether the UN or the World Bank—they should endorse the valuation. We also need an international inspection team, a recovery plan, and channels to obtain assistance. Then we must go to the world.

¶ 13 For this, I believe we first need an independent and credible Central Bank. While we have a Central Bank, it appears they face difficulty in defending the rupee. Therefore, the first necessity is to protect the rupee.

¶ 14 Strengthening the rupee reduces the burden. Every depreciation adds roughly Rs. 46 billion to our expenditure. Strengthening the rupee will help us use the received assistance more effectively.

¶ 15 Mr. President, when you entered, I was speaking on the insurance mechanism. You have been given incorrect data. I will send you the correct data on the actual performance of the NITF scheme.

¶ 16 You removed it during your Government’s time.

¶ 17 No, it changed after I left the Ministry. I wish to state that. These things change when they become successful; different actions occur. I have presented this matter to you. When such risks are insured, Sri Lanka does not have to pay for claims domestically. Other countries help fund the premium because we are a developing country.

¶ 18 It is good that the National Council on Disaster Management convened and appointed a committee to study such insurance mechanisms and report back.

¶ 19 Excellent. I will share with you the documents I have. You can secure foreign support at zero cost. The best thing, in my view, is to start raising funds domestically too. MPs have insurance coverage; I will assign mine for the people. Use that for the public.

¶ 20 Now 1,775 cabs are to be procured, valued at Rs. 42 billion—Rs. 4,200 crore. Let us reallocate that. Next year, 75,000 recruitments are planned, costing Rs. 12.5 billion. Together, that is around Rs. 170 billion. As Finance Minister turned President, I urge you: we can mobilize like this domestically.

¶ 21 We have monopolies on iron, aluminium, tiles, cement. These attract 45 percent taxes. Use this moment to reduce the tax burden. Construction costs in Sri Lanka are 45 percent higher than in comparable countries. If we reduce these taxes, we can build cheaper. If a hotel costs US$100 million here, it costs US$65–80 million in Thailand, Malaysia or Indonesia. Use this opportunity: a conditional relief package can be offered without hurting the primary balance or the Budget; no IMF consultation is required because reviving construction is essential.

¶ 22 Sri Lanka is known for cricket; in one, two, or three matches, make an appeal for funding. We may need US$3–5 billion. If after the tsunami US$7–8 billion flowed, then by these estimates roughly US$15 billion may be needed. Raise it. We cannot take it as loans due to the debt sustainability issue; we must get grants, or assign rebuilding of devastated localities to partner countries.

¶ 23 I also note: when we handed over the country, reserves were US$5,900 million; after over a year, it had increased by only US$1,100 million. We must strengthen reserves.

¶ 24 Many are suffering due to the disaster. I pray for their speedy return to normalcy. As this year 2025 draws to an end, I wish all citizens a Merry Christmas and a Happy New Year 2026 on behalf of the United National Party. Thank you.