The Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law

¶ 01 Mr. Presiding Member, on this Supplementary Estimate, some claim reallocation is needed because we failed to implement projects. In truth, Sri Lanka declared bankruptcy on 12 April 2022. Beyond queues and shortages, a key effect of default is that project loan disbursements stop and ongoing projects cannot proceed; delays then attract interest on interim payment certificates owed to contractors.

¶ 02 On the Central Expressway, interest alone has accumulated to about US$ 340 million due to delays. Some say projects halted due to environmental opposition or ideological resistance to expressways. No—the halt was due to default. After 2022, Exim Bank of China stopped disbursements because we announced we could not service debt.

¶ 03 The Chair of COPF, Hon. Harsha de Silva, criticized the Central Expressway loan’s floating rate of 2.5–3.5 percent, saying we cannot maximize benefits. Context: negotiations with Exim Bank began around 2015 for a dollar loan, but between 2015–2019 they did not conclude. The agreement was finally signed in 2019 as a USD loan. After the 2022 default, China would not continue a USD facility, and offered a Yuan facility instead. With currency conversion and risk, the rate floats 2.5–3.5 percent. In our constrained post-default position, re-engaging lenders itself is an achievement.

¶ 04 Moreover, when the 2019 agreement was signed, the exchange rate assumption was effectively at the earlier lower dollar rate. Today the rupee is near 300 per USD, yet prior terms leave us less able to capture that “benefit.” These are not unknown facts to Hon. Harsha, who was State Minister of National Policies and Economic Affairs in 2015–2019.

¶ 05 On the National Police Commission: it is a constitutional body with power to delegate. When the Commission delegates powers to the IGP, it is by its own decision, not by orders of the President or Parliament. Today, most NPC members are those appointed under the previous government; only one member was appointed recently. Casting aspersions here causes undue pressure on the Commission and on police operations. Let us understand this correctly.

¶ 06 Thank you.