The Hon. (Dr.) Pathmanathan Sathiyalingam

¶ 01 Thank you, Hon. Presiding Member. I participate in the debate on the Central Bank of Sri Lanka’s 2025 Economic Review, Financial Statements, and Operations. The report states Sri Lanka’s GDP has increased by 5 per cent. It outlines the enablers and challenges. It cites three main contributing sectors: industry, services including tourism, and agriculture. It also notes unemployment: from 4.4 per cent in 2024 down to 3.9 per cent in 2025. We can commend the government if a bankrupt economy has seen some recovery over two years. However, opportunities to do better seem to have been missed.

¶ 02 Due to global war conditions, the tourism sector—which earned significant revenue—declined by 19.8 per cent, a major issue. External reserves have also fallen. As many speakers noted, the decline in reserves is a key reason for the dollar’s rise. We cannot blame the government alone; global changes beyond our control also contribute. In this context, to increase GDP, all provinces must contribute.

¶ 03 Currently, the Northern Province contributes about 4.2 per cent and the Eastern Province almost 5 per cent to national output—together about 9–10 per cent. In contrast, the Western Province alone contributes about 42 per cent. The economic disparities among provinces are stark, and the internal war in the North and East is a major reason. The government must have a special plan to obtain the full contribution of the North and East to national output. To date, we are unaware of such a plan.

¶ 04 On industrialization, the North and East lack significant small, medium, or large-scale industry. Investment, domestic or foreign, requires an enabling administrative structure, market access, value addition, and branding. These are not yet established. What understanding or plan does the government have?

¶ 05 The backbone of the Northern and Eastern economies is livestock, agriculture, and fisheries. What has been done to develop these? Is there a plan? Please focus seriously and build the North and East economies to contribute to national output—bring investors and provide infrastructure. Airports and ports in our regions must be developed.

¶ 06 Next, I raise a serious issue in Vavuniya. A reserved forest in front of the University has been extensively cleared, allegedly with the Forest Department’s assistance. I have photographic evidence. It is a large forest, about 40 acres, within 1.5 km of the Forest Department office. Such destruction cannot happen without their support. Yet, the same Department restricts farmers and cattle herders from entering. With your permission: