The Hon. Ravi Karunanayake

¶ 01 Hon. Deputy Chairperson, thank you for the opportunity to speak on the economy. Development is about creating a better tomorrow—raising income, reducing costs, increasing savings, boosting capital expenditure, building reserves and reducing debt. The issue is how we actually execute.

¶ 02 Our labour force is about 8.1 million; around 1.6 million are in the public service, with the private sector also contributing immensely. We must see how to move forward together. Agriculture is vital, but decisive action is still lacking. Debt reduction requires export-led growth—something we have long advocated. We must remove red tape hampering exports.

¶ 03 By 9 July 2025, disputes among Canada, Mexico, China and the US/Donald Trump may partially settle, but global geo-economic tensions arrive at our doorstep. We must secure agreements quickly and expand exports. For 11 years our per capita income has floated between USD 3,750–4,500. When GDP rises the rupee weakens; when the rupee strengthens, GDP stalls. We need to break this cycle.

¶ 04 The Deputy Minister spoke earlier; I hear he may become Secretary to the Treasury. If so, he can answer many of the issues we raise.

¶ 05 On stamp duty: increasing Rs. 10 to Rs. 20 per Rs. 1,000 is estimated to raise about USD 3 billion over time. But simpler reforms are being missed. For instance, under lease/land-rent arrangements for foreigners (who cannot freehold), assessments are effectively capped at 20 years though some leases run 99 years. We thereby lose revenue; if we adopted proper valuation and ensured Revenue Department assessments rather than accepting only the lessee’s figures, we could earn USD 7–8 billion, not three. Crucially, this does not burden Sri Lankans—foreign users would pay. Let us adopt this approach.

¶ 06 On wages and costs: the Budget proposes pay increases—good—but we must also reduce costs. A duality persists between private and public sectors. Health Minister Nalinda Jayatissa told The Island (19 March 2025): “Government will not be able to pay salaries health workers are demanding through strikes.” We must treat both sectors fairly.

¶ 07 On EPF returns: when the Central Bank pays 25 per cent to its own staff’s fund but only 11 per cent to private workers’ EPF, that dualism is unacceptable. Rather than legislating more, let us implement practical equity.

¶ 08 On migrant workers: as Finance Minister in 2016, I set a USD 300 minimum monthly wage benchmark to boost remittances. It has since eroded. If we raise it by USD 200—say from USD 700 to USD 900–1,000—remittances could rise by around USD 1 billion annually. This is achievable.

¶ 09 We must accelerate investment. Despite claims of no strikes, no processions and no corruption, investments are still slow. We must restore the “feel-good factor,” reduce land allocation delays and procedural lags that take years, which deter investors. Even with examples like Sinopec entering, timelines matter. Competition is healthy.

¶ 10 We also need investment-enabling measures—Section 114A-like streamlining, tax holidays, qualifying payments—so that today’s investments generate tomorrow’s revenue. Thank you.