Hon. Anuradha Jayaratne

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to speak on the first Budget presented by the present Government.

¶ 02 Before getting into Budget specifics, I must note: if the rule of law is not protected and peace is not properly and lawfully established, how far can we truly take the country forward? This morning, I saw a report similar to one I saw in 2022, warning of a security threat in courts—individuals disguising themselves as lawyers to smuggle weapons into courtrooms. Back then, as State Minister of Justice, I acted, and we averted an incident thanks to that intelligence. Today, some may trivialize national security alerts, but if someone can carry a gun into a place meant to uphold the law, no Budget can deliver stability.

¶ 03 I mention this not lightly. Yesterday, there was information about an attempt to hijack a prison bus and flee to India by boat—fortunately averted. If intelligence is not properly assessed and acted upon, rhetoric alone will not save us.

¶ 04 Hon. Minister of Justice, we have even seen you being checked upon entering the courtroom. Why? Because proper procedure protects all. If we fulfill our duties properly, we can better advance other tasks.

¶ 05 Turning to the Budget debate: many overlook recognizing positive steps of Government. The severe 2022 crisis was, by the latter half of 2024, to some degree—not 100 per cent—stabilized. Inflation around mid-2022 exceeded 70 per cent; reforms commenced in mid-2022 and were concluded by December 2024, as the President stated.

¶ 06 Inflation was brought back to single digits; reserves, once depleted, rose to US$ 6 billion; we recorded a current account surplus again. The Government must now present a robust pathway forward. We are not yet in an easy place, and I believe the Government understands this. Without a strong plan, what happens?

¶ 07 Today, the Budget deficit is Rs. 2,200 billion. We must present clear information to this House on how to earn that properly. Showing a deficit and projected revenues is not enough; we must show how much will actually be realized.

¶ 08 Reserves are US$ 6 billion; they should reach US$ 8 billion next year, US$ 10 billion thereafter, and US$ 14 billion by 2027. At US$ 14 billion, vehicle imports alone will cost US$ 1.5 billion. If we spend US$ 1.5 billion and reimpose the current taxes, will Government really get the targeted revenue from vehicle imports? Consider this carefully with the Ministry’s statistics. That projected revenue may not materialize. Without a more structured plan, we risk another problem.

¶ 09 The President says exports must rise to US$ 19 billion. In 2020, exports were US$ 10 billion; in 2021, US$ 12 billion; in 2022, US$ 13 billion; in 2023, US$ 11 billion; in 2024, US$ 12.78 billion. If you now say US$ 19 billion, we would be happiest if it could be US$ 29 billion, even US$ 30 or 40 billion. But think twice about whether those numbers will truly reach the Treasury. Otherwise, we risk, as a Government, drifting into difficulty again. We must manage this opportunity properly; we will not get a second chance.

¶ 10 On the one hand, we speak of US$ 19 billion exports; on the other, we import salt, coconut, and rice. Without a credible long-term plan, we risk crisis.

¶ 11 (Intervention by Hon. Bimal Rathnayake: citing a report that 2024 exports reached US$ 16.17 billion and thus the US$ 19 billion target is plausible.)

¶ 12 In response: I table the document obtained from the Parliament Research Division. If there is any discrepancy, we can look into the research source. I did not speak without data.

¶ 13 Some government decisions we welcome. The Government has moved from mere rhetoric to practical governance. You said the IMF agreement would be amended, yet it continues—this is positive and we thank the Government. When the country was collapsing, there were calls to arrest senior officials within 24 hours. Yet recently, we saw the Finance Ministry Secretary, Mr. Siriwardhane, seated next to the President while preparing this Budget. It is good that slogans were set aside for practical governance.

¶ 14 We must now grow reserves. By 2028, when debt service restarts, we need at least an additional US$ 1.5 billion in inflows to keep cushions intact. If we do not bring at least that much FDI or external inflow, we will face serious problems. This Government came to power to reform governance, administration, and development. Yet in some places old practices persist—let me self-critically acknowledge that.

¶ 15 A clear example: Port City was initiated under President Mahinda Rajapaksa; suspended in 2015; the US$ 3 billion Colombo Monorail was then proposed, later halted; then the Adani US$ 1 billion investment came; then United Petroleum was selected among 26 to develop fuel stations and proposed EV charging across the island—a future-looking initiative, potentially saving up to 80 per cent of US$ 350 million in fuel import costs. But today United Petroleum has exited.

¶ 16 The seriousness is this: if there were issues with Adani or any agreement, then investigate and hold those responsible to account. But when Reuters runs a story that Adani is quitting investments in Sri Lanka, it hurts the country’s reputation. The problem is not whether Rajapaksa, Sirisena, Gotabaya, or Anura stops a project; it is that Sri Lanka appears as a country without policy consistency, revoking approvals, and appointing Cabinet committees to re-examine already-granted approvals. Who will then bring investments?

¶ 17 The Government needs at least US$ 1.5 billion in inflows. If we chase away those already coming, we will face crisis. Do not trade accusations; fix the issues or the Government will face a deeper crisis.

¶ 18 Another point: the President proposes Rs. 3 billion to procure low-floor buses, adding 100 new buses. This is fine. But we must think differently about the sector’s structure—SriLankan Airlines debt and restructuring show how hard it is to carry legacy burdens. Think out of the box. For example, allow a private operator to run 40 per cent of the Sri Lanka Transport Board’s operations in a structured PPP: then low-floor buses, Wi-Fi, new fleets can come. Otherwise, by 2028, when debt installments resume, if reserves are inadequate and exports weak, we will face severe difficulties. We must think holistically now.

¶ 19 Beyond foreign investment, we must rebuild domestic business confidence. With current taxes and restrictions, will domestic entrepreneurs provide the needed boost? What new investments are we seeing? What new products? What capital is needed to take exports to US$ 19 billion and upgrade infrastructure? If the Budget does not take sound decisions on these, the statistics may look pretty, but in practice people will suffer. Thank you.