The Hon. (Mrs.) Chamindranee Kiriella, Attorney-at-Law

¶ 01 [3.40 p.m.]

¶ 02 Hon. Deputy Chairperson of Committees, thank you for the time to speak in this national Budget debate.

¶ 03 A Budget sets a nation’s future path and citizens’ living standards. In summary, this 2025 Budget expects expenditure of Rs. 7,190 billion and revenue of Rs. 4,990 billion, implying a deficit of Rs. 2,200 billion.

¶ 04 Under the IMF program, while we must meet overall fiscal targets, the IMF does not dictate exactly how we raise revenue; the Government is free to decide. Government members have called this a people-friendly Budget. However, over 50% of revenue is to be raised from people through taxes—income tax, VAT, and the Special Commodity Levy imposed on imports from 18 December. From the people’s perspective, this is regressive, not people-friendly.

¶ 05 The National People’s Power (NPP) presented a policy manifesto “A Prosperous Country – A Beautiful Life.” Many women—52% of our population—rallied under “Women, Together as One,” trusting promises such as removing VAT on essential items, school supplies, and medicines. I raised this here previously, and Government members said, “Wait for the February Budget.” Yet even now, VAT on essentials has not been removed. We are disappointed.

¶ 06 If not by taxing people, we must grow exports and attract foreign investment. The previous Government engaged the Adani Group with 14 meetings over two years for a US$ 1 billion investment, but last week Adani formally withdrew. We ask the Government: do not view foreign investment with constant suspicion; we need it. Many countries run efficient one-stop-shops; in Sri Lanka, it feels like a “one-stop stop.”

¶ 07 The rule of law is critical to attract investors. Recently we saw political interference alleged in the Attorney General’s advice. Justice must not only be done but be seen to be done. Investors evaluate that. I urge the Government to ensure the independence and appearance of independence in the legal framework.

¶ 08 On women: Rs. 1.4 billion is allocated for sanitary napkins for schoolgirls—welcome. Our leader Hon. Sajith Premadasa initiated this national conversation in 2019, and Hon. Harsha de Silva, as Chair of COPA in the previous Government, recommended allocating Rs. 1 billion. I’m glad this is continued.

¶ 09 Although women are 52% of the population and Sri Lanka has a high literacy rate (92.4%), female labour force participation is low, around 30%. Verité Research found that 80% of non-working women are between ages 20 and 39, with maternity benefits a key hiring deterrent for SMEs. Sri Lanka acceded to ILO 1951 standards in 1983 on maternity protection. Verité recommends the Government shoulder the cost of maternity benefits. The estimated cost is about Rs. 7.4 billion—around 0.001 of total Government expenditure. Over 100 countries fund maternity benefits publicly. Though mentioned in the 2019 Budget, it was not implemented. I urge the Government, particularly the Minister for Women and Children’s Affairs, to have the State fund maternity benefits to increase women’s workforce participation. Thank you.