10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

The Hon. Hector Appuhamy

Samagi Jana Balawegaya· Puttalam· 12 November 2025 ·Debate: Appropriation Bill, 2026 - Second Reading Debate

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Hon. Hector Appuhamy criticized the 2026 Budget debate for focusing on allocations rather than implementation and outcomes, arguing that poverty now affects middle-class public servants as well as rural communities. He called for targeted relief for collapsed SMEs, including interest reductions and support for assets auctioned by banks, and urged the Government to suspend the proposed SVAT change unless timely refund mechanisms are guaranteed for exporters and import-dependent SMEs. He also proposed that the Government absorb the cost of purchasing smallholder crops such as potatoes and onions at fair prices instead of passing costs to consumers, and raised concerns that politicization and intimidation in public administration are weakening state functions.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Hon. Presiding Member, thank you for the opportunity.

¶ 02 We are debating the 2026 Budget presented by the Hon. President as Minister of Finance. What I observed is that Government MPs are merely repeating what the Minister already said for four and a half hours—how much was allocated here and there. That is not enough. You must say what will actually be done and what outcomes will be delivered.

¶ 03 Remember this as well. The previous speaker spoke about poverty. What we have in this country is hidden poverty. If you say poverty exists only in shanties, you are wrong. Poverty now extends into the middle class. Many public servants earning Rs. 200,000–300,000 a month, after paying taxes, buying essentials, paying for education, fuel, electricity and other bills, are left with nothing. No one speaks for them. So don’t think poverty is only in rural huts. If you think you can erase poverty by giving seeds to rural folk alone, you have failed from the start. You need a system. How do you build that system? Keep in mind the next point.

¶ 04 Small and medium enterprises are bearing the brunt. What does this Budget do for SMEs who collapsed due to past issues including para-tariffs and policy shocks? You started a new credit scheme for new businesses. But where should you start? First, support SMEs who have fallen—give relief and facilities. If some have properties already auctioned by banks, you should have brought a program in this 2026 Budget to reduce interest and help recover those assets. You did not.

¶ 05 Next, on bonds and SVAT. In the export sector, producers import raw materials. Under the former SVAT system, an endorsement was given and the set-off happened at export. Now you impose the tax at import. Remember that SMEs also import inputs. This creates a serious cash-flow crunch across exporting firms. They must find large sums upfront—often via bank loans or overdrafts—to import raw materials, and then wait days for refunds. No government has promptly repaid such dues. Therefore, as the Opposition, we propose: unless you can set up a workable, timely payment package, do not implement this SVAT change now. Suspend it. Otherwise SMEs and exporters will be destroyed, and the economy you speak of will collapse.

¶ 06 Around the world, countries have big programs to tackle poverty, including sectoral projects for fisheries and agriculture. You only talk about potatoes, onions and the farmer. If the Government buys their harvest at a fair price, absorbing losses, that is where budget money should go—because most farmers are smallholders. If they collapse, it takes years to recover. So set aside funds to intervene: purchase onions and potatoes and stabilize prices. Do not load that cost onto consumers via VAT or other taxes. The Government should absorb it. That is the Government’s responsibility. Instead, what happens?

¶ 07 I heard yesterday the Minister of Agriculture say he is ready to buy potatoes at Rs. 300 a kilo and onions at Rs. 200–250. Why? Paying a fair price to the farmer is good, but then you try to recover it from consumers. That is not right. In times of distress, the Government must carry the cost, not pass it to the people. Otherwise, the Government is useless.

¶ 08 Remember also how, when you came to power through the JVP-led front, you gathered a host of intellectuals and then kicked them out. In the public service, officers who have worked under UNP, Pohottuwa, or SLFP governments—if they carried out duties then—you now sideline them. These are capable officers. Your method has created a situation where many public service functions are stalled. There is now a notion that “the gatekeeper has become the ruler.” We are not inventing this; it is spoken within the public service. You created this. When you make decisions, set up proper processes. At COPE, COPA or other committees, often everyone gets branded as thieves, with loud, abusive rhetoric. This affects the public service. During the tsunami and economic collapse, it was the public service that helped the country stand up. Today, no one wants to take responsibility because when something goes wrong, no one stands behind them. They get scapegoated while you slip away. This governance style has pushed the public service backwards and reduced decision-making.

¶ 09 For example, in some places, licenses applied for in July this year still have not been issued. Without proper systems, how does the country move forward? How does a business or investor function? This breakdown is your fault; do not point fingers at those who highlight it. If someone who has never ridden a bicycle tries to fly a plane, problems will come. Pay attention and correct course.

¶ 10 Regarding the recent report from the United States, consider it carefully and act. It says you have unnecessary regulation and describes you as anti-American and anti-private sector. Investors are being advised to be cautious with Sri Lanka because your regulatory approach is flawed. If you do not rectify this, it will affect our standing globally and deter investment.

¶ 11 Next, our labour force. We are becoming an aging society. As per recent statistics, the elderly share keeps rising, reducing our labour force. In village after village, the best youth are migrating. You used to say youths are leaving because there is no system here. Today, ask any youth—they want to go abroad, seeking good jobs elsewhere. If your governance and the systems you brought after the Aragalaya are so good, people should say, “We will stay.” They do not. There is a gap. The loss of our labour force is becoming a serious issue.

¶ 12 On land: there is a mismatch between where investors need land and where available land exists. You have allocated funds to create a digital land bank. Why? From what we see, by 2027 you are preparing to impose a property tax, and this system is being built to administer it.

¶ 13 Another point: through social media you run smear campaigns using paid troll armies. The language used in those comments is vile and corrosive. Society is being deformed; even within families there is discord, because hatred is being cultivated—by you—through these platforms. I have seen the abuse firsthand, even targeting my late mother. Some of those doing it have criminal records. They post with your photos and symbols, under your troll operations. Reflect on what that says about you. Stop this conduct on social media.

¶ 14 Some YouTubers now live by selling slander with obscene language, and you have enabled this. Investigate and act, because it is creating deep social problems, even affecting Catholic and Buddhist schools and principals, and disturbing religious harmony. You are reshaping a once respectful social space into a toxic one. This is wrong.

¶ 15 Hon. Presiding Member, though my time is short, let me add: even the seizing of narcotics should be handled properly—move them to a separate secured island if needed. At minimum, do that.

¶ 16 Finally, two points. On the Easter Sunday attacks: we say that Sara Jasmine did not die as claimed then; she is in India, according to what was said at that time. Send Red Notices and apprehend her, just like others pursued abroad.

¶ 17 Also, regarding Container 323, we have previously heard of narcotics found among red-labelled containers. Let us, both you and us together, eradicate this drug menace and save the country from this threat.

Provenance

Source
Hansard, Wednesday, 12 November 2025 ·No. 23378 ·English daily/uncorrected Hansard
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Cite as: The Hon. Hector Appuhamy. 10th Parliament, Parliament of Sri Lanka. Hansard, 12 November 2025. No. 23378. Politick, https://staging.politick.io/lk/speeches/17445