The Hon. Shanakiyan Rajaputhiran Rasamanickam

¶ 01 Madam Deputy Chairperson, thank you for the opportunity. I am glad to speak after the Deputy Minister’s remarks. It is difficult for Members to participate in this debate because the government has pressured the Election Commission to call for nominations during the Budget Committee Stage, forcing Members to split time between Parliament and nominations. I am here today and tomorrow, but not the day after. For a democracy, preventing elected representatives from performing their mandate like this is unfortunate.

¶ 02 The Ministry of Digital Economy bears a great responsibility for rebuilding our future economy. Look at South India—Bengaluru and other southern states built their economies through IT. We are 10–20 years late. We are catching up because we missed the bus. Many voted for this government hoping it would provide the infrastructure for IT to drive economic growth. But in these first months, the government has targeted those at the bottom of the IT sector.

¶ 03 We accept that taxation is necessary to rebuild the economy and raise revenue. However, the current State Minister of Finance posted, on 31 October 2023, that tax levels had reached equilibrium and that further tax increases would cut consumption and savings and crash the economy. Now, after coming to power, taxes have been increased. This causes public anger, including among those in IT.

¶ 04 From the start of this debate, I have repeatedly raised that massive tax incentives—amounting to Rs. 966 billion by the end of 2024—have been granted. This government continues those incentives; there is no word of cancelling them. Within that Rs. 966 billion, large IT companies benefit. Meanwhile, individuals earning up to Rs. 150,000 a month are exempt, with brackets above that. Granting big incentives to large IT firms while widening taxation elsewhere creates public resentment.

¶ 05 Another long-standing issue is PayPal. For online commerce, PayPal’s buyer-protection framework builds trust and has enabled growth across South and Southeast Asia—not only in IT but in many internet-based businesses. We expected this government to prioritize enabling PayPal inflows into Sri Lanka. I did not hear a clear plan in the Deputy Minister’s response. There has been no serious discussion about enabling PayPal receipts domestically. As it stands, the only thing many IT-connected citizens have received from this government is more tax.

¶ 06 We are not against taxation per se. But public sentiment is clear. Social media comments express frustration: taxing small bikes and cars while facilitating luxury vehicles for the wealthy is unacceptable. The government should take heed of where public opinion stands.

¶ 07 Given time constraints, let me raise a few matters outside the immediate topic because the Hon. Prime Minister is present. I have previously informed this House: organizers of your party in Batticaloa District are behaving deplorably. When I alerted your party’s MP, Mr. Kandasaamy, he said the person in question was not their organizer. The District Development Committee Chair, Deputy Minister Arun Hemachandra, was informed—no action followed. This morning, a party organizer assaulted a preschool teacher; a police entry has been made. Weeks ago, the same individual threatened the Divisional Secretary at his office; only after speaking to your MP did the pressure cease. They have interfered with the Pradeshiya Sabha and hospitals. Recently, after causing a village brawl and getting beaten—badly—the same person had the police entry withdrawn to avoid hospital reports revealing intoxication.

¶ 08 Hon. Prime Minister, Batticaloa needs computers for children who have never touched one. We hoped your party would help equip schools. Instead, your organizers are threatening the public.

¶ 09 Hon. Deputy Minister Eranga Gunasekara, I wish you success. You are capable; we will extend any support. Please focus on PayPal and similar enablers. Also, if large tax-incentivized firms are required to set up outside Colombo—in the North, East, and other competitive regions—then such incentives are fair. Otherwise, firms remain in Colombo and poach talent, exploiting incentives.

¶ 10 Thank you for the extra minute, Madam Deputy Chairperson.