The Hon. Asoka Sapumal Ranwala

¶ 01 Hon. Presiding Member, I am pleased to speak during the debate on the motion to adjourn the House to discuss the Central Bank’s Annual Economic Review Report for 2025. However, I consider it a serious misfortune that not a single Opposition MP is present in the Chamber for this discussion. We are compelled to review this report precisely because we must move forward from a period of severe crisis. To move beyond crisis, we must first understand it. The years 2024 and 2025 are crucial to study and review the conditions of the country’s economy.

¶ 02 We are often accused of repeatedly talking about history. But any analysis of a crisis without such context is of little use. In 2015, Sri Lanka’s economic growth rate was around 5.2 percent. Yet, within a very short period, it fell systematically to 2.2 percent. That collapse in growth is deeply regrettable. Several factors contributed: the breakdown of state institutions within the state structure, and the politicization of public institutions. Under politicization by a group led by Gotabaya Rajapaksa, Basil Rajapaksa, and Namal Rajapaksa, irregular recruitment of casual workers into institutions created difficulties and led to administrative collapse. Economic policy was also pursued without proper assessment. During that period, various agreements such as the Hedging deal and other issues, the political climate confronted by the government, the COVID-19 pandemic, as well as the Easter attacks, all had an impact. Except for COVID-19, most of the other issues were aggravated by political interference.

¶ 03 Ultimately, the country was driven into a massive mountain of debt. We could not move forward, nor service debt and interest, and the country was declared a bankrupt state. Internationally, our economic sovereignty and stability were lost. Consequently, we could not import essential fuel and gas. For the construction sector, even cement and iron could not be imported. We could not import milk powder needed for children or fertilizer essential for agriculture. We also could not import vehicles vital to development. In such circumstances, the people could no longer bear the burden; they faced many problems, demanded wage increases through trade unions and agitated. Severe repression was used, which led to large struggles by workers and students, and the economy declined further. This was the trajectory from 2015, rapidly worsening.

¶ 04 Amid such conditions, in 2024 we had to set out a structured program to move beyond the crisis and we, as a Government, identified the fundamental theoretical measures required. A key observation in that analysis is the primacy given to stabilization through the Central Bank and the Treasury. Recognizing the economy had collapsed, the first requirement to move ahead was stability. On the basis of stability, we needed to restore credibility: confidence among the public regarding industry, services, particularly agriculture, education and health, and among workers and employees; and regain international confidence. Along with stability and credibility, we also needed a strategic growth plan.

¶ 05 A close study of the Central Bank’s Annual Economic Review shows clearly how growth has been planned on the foundation of stability and credibility: agriculture growing by 1.4 percent, industry by a robust 7.8 percent, and services by 3.3 percent. To raise agriculture’s scale, land under cultivation must increase. Farmers lacked certainty over land rights; their confidence was broken, and land was encumbered. The “Urumaya” program is strengthening agriculture by addressing land rights and, with technology, increasing yield per acre.

¶ 06 The report shows clearly the allocations provided to expand cultivation and productivity, enabling 1.4 percent growth, directly benefiting food security. The strong industrial growth also benefits SMEs who had faced uncertainty and lost trust in Government and banks. Rapid measures restored confidence, enabling 7.8 percent industrial growth. Given the linkages between agriculture, industry and services, the 3.3 percent services growth supports overall progress. As a result, nominal GDP rose from Rs. 30.1 trillion in 2024 to Rs. 32.8 trillion in 2025. In US dollar terms, GDP increased from USD 99.6 billion in 2024 to USD 108.8 billion—a historically high increase that has contributed significantly to stability. Per capita income rose from USD 4,596 in 2024 to USD 5,003 in 2025.