The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Chairperson of Committees, speaking after the Opposition Leader is apt. He said the Government has done nothing for SMEs. I have watched his political journey from my youth. When two state development banks were closed, I did not hear him speak strongly. From 2015–2019, with strong portfolios, he did not fight to establish structured capital provision or equity funds for SMEs.

¶ 02 The SME crisis stems from financial sector disorganization and lack of suitable instruments in private banks. Loans are collateral-based, and recovery occurs via selling collateral. You made the Central Bank “independent” but now it cannot even direct private banks to restructure loans. This Government issued several circulars and models, bringing the Central Bank and other banks together to assist SMEs via the Industry Ministry. While very large borrowers with Rs. 38–40 million loans still face difficulties, sector-wide solutions must come from the banking system; there is no single universal fix we can impose.

¶ 03 We are effecting a first-ever change in transport. Economic growth demands action in transport and logistics—the arteries of the economy. If movement clogs, the system malfunctions. Logistics performance—passenger and freight—is foundational.

¶ 04 This Supplementary Estimate is a reallocation, not extra funds: Rs. 36 billion unspent due to various reasons will be used to reduce our debt burden. Previously, governments came after squandering funds to ask for more without real debate.

¶ 05 The “76-year curse” lies here: inflated road costs due to corruption; international projects walking away because of commissions demanded; expressways built to reach politicians’ homes rather than production hubs. The British understood: rail from hills to ports for tea. Expressways should move production, not politicians.

¶ 06 On attracting investment: beyond macro stability and predictability, competitiveness—especially logistics competitiveness—is key. The World Bank’s Logistics Performance Index shows Sri Lanka at 2.88 (73rd). Customs efficiency, infrastructure, international shipments, logistics competence, tracking/traceability, and timeliness are all weak. Peers: Vietnam 3.38, India 3.48, Thailand 3.5, Singapore 4.3. This is the legacy after 30 years under both your parties.

¶ 07 With Transport’s support, Industry is fighting to lower costs and improve productivity—workers’ efficiency depends on commuting ease and speed; supply chain efficiency depends on transport.

¶ 08 For the first time, the entire transport sector—from ports to SLTB and private buses, from road building to passengers—is being aligned to support the economy. I hope all parties support this Supplementary.

¶ 09 By using these funds to pay down debt, we can reduce interest costs from 12% to 10%—a capital expenditure saving negotiated with banks. Under the IMF framework and expenditure management, we are, for the first time, transparently reprogramming allocations months ahead to better uses.

¶ 10 These are the curses we are here to end—for SMEs and transport. Thank you.