The Hon. (Dr.) Harshana Suriyapperuma - Acting Minister of Finance, Planning and Economic Development

¶ 01 Madam Presiding Member, regarding the ISB restructuring process, it is suggested we are exposing shortcomings. However, our team engaged with the IMF and creditors well before the presidential election—over a year—so we had a realistic picture. Total ISBs were about US$12.55 billion, with about US$1.67 billion in past-due interest, totaling around US$14.22 billion.

¶ 02 The prior Government had already appointed advisors: Clifford Chance for legal framework and litigation, and Lazard for financial dynamics. Large foreign-currency fees have been billed: approximately US$6.1 million from Clifford Chance already, with more to come, and around US$8 million from Lazard; about US$12 million already paid. Two days before the presidential election, the previous Government signed an MoU with ISB holders and made market disclosures via Singapore and London Stock Exchanges.

¶ 03 Some asked why we could not drop the MoU. But shortly before that the Chinese side had signed not only an MoU but also a new debt agreement. Comparable treatment would have been undermined if we unilaterally walked away. We faced a choice: abandon the process after massive sunk costs and time, or continue while steering toward growth and our manifesto’s economic stabilization.

¶ 04 We inherited a crisis: dignity shattered, a mountain of debt, sky-high interest rates, depleted reserves, collapsed rupee, soaring prices, crippling energy costs, exodus of youth, business confidence broken, and a degraded political culture. Our duty was twofold: stabilize the economy and restore hope for citizens, youth, businesses, and investors. Our Economic Policy’s Chapter 14 outlined an Economic Stabilization Programme. We chose to continue ISB restructuring to avoid fresh instability.

¶ 05 Results: CPI and cost of living have begun to edge down—insufficient yet improving. Energy costs have fallen, improving competitiveness by about 6%. The exchange rate and interest rates have stabilized; the policy rate is down to 8%. Fuel prices have decreased, with room to go further. Price stability is emerging; reserves are gradually improving.

¶ 06 We expedited targeted relief: accelerated Aswesuma payments that had been delayed under the previous Government; provided immediate fisheries relief—fisherfolk returned to sea, improving protein availability; restored fertilizer support—farmers returned to fields; lower interest revived business sentiment and investment appetite.

¶ 07 We are advancing a realistic growth trajectory to 2030, pushing development beyond cities into rural economies, consistent with “A Prosperous Country, a Beautiful Life.” Continuing the ISB process, rather than making a U-turn amid signed MoUs and agreements, avoided deeper instability. We will keep implementing reforms to expand production, support MSMEs and industry, and sustain stabilization while protecting the vulnerable.