The Hon. Anura Karunathilaka - Minister of Ports and Civil Aviation

¶ 01 Hon. Speaker, thank you for the time.

¶ 02 We know the challenges the country faces. On one hand, we must strengthen the economic foundation; on the other, we must sustain a robust growth rate and share its benefits with the people — a Government’s responsibility. Even with growth, there are sections unable to integrate with the process and left behind; the State must identify, uplift, and ensure their welfare, while pursuing growth.

¶ 03 According to available data, compared to 2024’s weakened base, in 2025 the NPP Government has strengthened key areas: increased public sector salaries without cutting essential expenditure; approved recruitment where none happened for years; restarted many halted projects — highways, water schemes — investing billions; raised pensions; and maintained fiscal discipline with a primary surplus of 2.3 percent of GDP, improving from Rs. 0.8 trillion to Rs. 1.5 trillion. State revenue rose to 16 percent of GDP — and importantly, in 2025 without imposing any additional taxes. Those who said even a Montessori child could do this must answer why they failed when in power. We improved tax administration and enforcement, widened the base, enhanced foreign exchange via remittances, exports, and tourism.

¶ 04 Unresolved issues remain: employment has risen from 47 to 49 percent of the labour force, but many qualified youth still lack jobs; vulnerable groups still face hardship despite 2025 interventions in transport, education, health, etc. To resolve this, we need higher, optimal growth.

¶ 05 Thus, in 2025 we target an optimal growth rate that sustains and supports the economy. For investment promotion, several Bills cited earlier are being finalized for early 2026: the PPP law is at the final stage after Cabinet and AG’s review; amendments to the Strategic Development Projects Act and the Colombo Port City Economic Commission Act are scheduled in 2026; and the Investment Protection Bill is also at its finalization stage. We are not neglecting the legal enablers.

¶ 06 We also allocate Rs. 3,000 million to develop investment zones, spread industrial benefits to the provinces, and create opportunities for SMEs. A key matter is land-use policy. For new investments, we must rethink legacy land-use and plan zones in advance with requisite utilities — power, water — and set up a centralized digital information system of investment-ready lands, pre-provisioned with infrastructure, so that investors can be matched quickly and begin operations fast.

¶ 07 Strengthening SMEs is vital. We propose Rs. 53.4 billion for SME development, alongside administrative reforms by consolidating agencies — the National Enterprise Development Authority, SME Development Division — under the Industrial Development Board for faster approvals and decisions. For industrial estates, Rs. 4,000 million was initially allocated and now increased by another Rs. 1,000 million, totaling Rs. 5,000 million.

¶ 08 In 2025 we allocated Rs. 4,270 million for collateral-free lending to entrepreneurs. While the initial idea was a new bank, pragmatically we routed through existing banks. By September, Rs. 4,027 million — 94 percent — had been disbursed as collateral-free loans to SMEs. Owing to this success, the 2026 Budget provides an additional Rs. 7,000 million. Further, loans up to Rs. 25 million for successful businesses, and up to Rs. 15 million for those facing difficulties, with Rs. 5,900 million set aside to support SME loans up to Rs. 50 million.

¶ 09 On digitalization — a flagship of the NPP Government — we allocate Rs. 25,500 million this year. The GovPay system has already processed over two million transactions, and the GovTech initiative is driving document digitization and service efficiency. We will establish a Digital Economy Council, issue the first digital ID by Q3 2026, and reduce physical currency transactions, especially with Government, by waiving service fees on online payments; Rs. 1,000 million is allocated to upgrade systems and Rs. 500 million to promote facilities. The Rs. 500 million for the data centre is for groundwork — infrastructure readies, feasibility studies — while the data centre itself will be developed via suitable public-private or concession models. Additionally, Rs. 7,750 million is allocated for AI, overseas training, scholarships for school and university students, and strengthening research.

¶ 10 In higher education, last year we increased Mahapola by Rs. 2,500 and add another Rs. 2,500 this year — doubling it. Rs. 11,000 million for medical faculty development; Rs. 11,500 million for research; Rs. 5,000 per month to all differently-abled students in higher education; hostel rehabilitation; restarting suspended projects; and limited amendments to the Universities Act — many measures are underway.

¶ 11 Experts have welcomed aspects of this Budget: the President of the Institute of Chartered Accountants noted the targeted primary surplus in 2026; tourism sector stakeholders valued steps to boost the industry; academics like Prof. Prasad Serasinghe and Ven. Wijithapura Wimalaratana Thera commended its constructive measures. Some in the Opposition criticize, even mocking a proposed offshore road parallel to Marine Drive by asking how fish would cross; but globally such coastal highways exist — from the Atlantic to the Pacific Coast Highway, and in India between old and new Mumbai. Let us see the good as good and the wrong as wrong — not deny the good. Thank you.