The Hon. Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Deputy Chairperson of Committees, with your leave. Ayubowan! Vanakkam! Assalamu Alaikum! Good evening! I warmly welcome everyone, and bow my head in gratitude to the people across all provinces who entrusted us with this great victory.

¶ 02 Madam, this may be just the Vote on Account we debate and conclude today, but for many, it represents the hope of rebuilding the nation. Youth are hopeful; women are hopeful; SMEs and large businesses are hopeful; high-net-worth individuals and foreign investors are hopeful. Most importantly, this political victory carries a greater message: people in the North, East, South, and the estate sector are hopeful; those trying to migrate are hopeful; Sri Lankans overseas are, for the first time, hopeful; and law-abiding citizens hope that, as one nation, we will rise again and restore our dignity.

¶ 03 We must undertake a significant economic leap. Traditional methods alone are insufficient to lift a battered economy. We are therefore integrating research and development to take Sri Lanka’s economy to a new plane through a clear programme. Following the President’s address, many local and foreign investors have already been engaged. Through institutional structures and transparency, we will push value-added production, strengthen the productive economy, earn and conserve dollars, and fortify R&D to drive growth.

¶ 04 Over two days of debate, we did not see much constructive criticism of the Vote on Account. Instead of rehashing old tropes, we would have welcomed fair engagement with the content. This Vote on Account serves as a stepping stone until the full Appropriation Bill, ensuring: - Recurrent expenditure, - Payment of salaries to public servants, - Medicines and essentials for hospitals, - Continuity of ongoing capital works that cannot be abruptly halted, - Debt servicing arrangements.

¶ 05 There were claims the Government is “raising a new Rs. 3,000 billion loan.” That is incorrect. This concerns restructuring existing debt. We are cancelling and replacing existing instruments as part of the debt restructuring process; it is not new borrowing.

¶ 06 In two and a half months, the new team – experienced former MPs and ministers, professionals including doctors, engineers, teachers, academics, social activists, women and youth representatives – has: - Stabilized the exchange rate: the dollar has moved from the Rs. 360–plus range to about the Rs. 200s, stabilizing the rupee. - Reduced interest rates: from around 12 per cent at the start of the year to about 9 per cent; the Overnight Policy Rate is down to 8 per cent. - Increased external reserves to about USD 6.4 billion, with plans to raise further. - Tamed inflation to more tolerable levels, while continuing efforts to reduce prices of essentials. - Achieved an all-time high in the ASPI at the Colombo Stock Exchange, reflecting investor confidence. - Increased tourist arrivals, targeting over 2 million by year-end. - Seen steady growth in foreign remittances.

¶ 07 This reflects the success of our macroeconomic stabilization programme. Advice now coming from those who drove us into an economic abyss is not helpful. The work predates 22 September; for years many dedicated people prepared this path, negotiating with the IMF, ISB holders and other creditors. The results you see today are the product of teamwork.

¶ 08 We will proceed with zero tolerance for corruption, anchored in transparency and accountability. Political leadership and will are there, but we must work together with public institutions, large enterprises, SMEs and citizens. The Vote on Account is the foundation for a new chapter in our economy. We will connect Sri Lanka to the global economy, and the next generation to global opportunities, through a digital platform and by building a digital economy linked to the global digital ecosystem. We have started strong, shown steady progress, and are determined to reach our goals.

¶ 09 Hon. Speaker took the Chair.

¶ 10 Hon. Speaker, as I was saying, the suspension of the parate law expires mid-December. We have closely examined this with the Central Bank, gathering data and analysing the debt stock: how much is outstanding and which businesses are affected. A large portion relates to loans taken before the 2019 Easter attacks, while many SMEs borrowed later and now face difficulties. We are finalizing a mechanism to give the largest possible relief to the maximum number of SMEs – looking at outstanding principal and interest, thresholds and timeframes. We will shortly submit this to Cabinet to implement.

¶ 11 Our practical programme is a participatory economic structure creating a level playing field and pushing an export-oriented path while broadening the economy. The Vote on Account lays the base; the main Budget will propose more. We are changing the culture of public expenditure – cutting waste to safeguard taxpayers’ money. For example, allocations for Presidential advisors in the Vote on Account have been cut by 64 per cent. The headline Rs. 130 billion under the President’s head is to provide relief to the most vulnerable families suffering from poverty – many of whom struggle to afford even one meal a day.

¶ 12 We are depoliticizing revenue agencies to raise the targeted approximately Rs. 1,600 billion in revenue. In the last two and a half months, against a target of Rs. 8 billion in excise for spirits (including long-overdue arrears of over a decade), more than Rs. 1 billion has already been collected. Our advisors serve without charge, contributing to a 64 per cent reduction in costs of the Presidential staff.

¶ 13 Customs has significant scope to raise more revenue. We are strengthening the Inland Revenue Department with processes and advisory support. The Vote on Account is not an instruction to compulsorily spend; it authorizes only what is essential for the first four months, with careful, disciplined management replacing a culture of extravagance. We acknowledge external shocks and natural disasters can arise and are preparing accordingly.

¶ 14 We proceed within the IMF framework after careful consideration of alternatives, extracting maximum benefits for the country and people. Improved sovereign ratings will open greater opportunities, especially for FDI. Based on progress to date – including the 11/11 programme and ISB creditor work – we are hopeful of rating improvements by year-end or early next year.

¶ 15 I invite everyone to join us to advance this journey successfully. Thank you.

¶ 16 Question put, and agreed to.

¶ 17 SUPPLEMENTARY SUM: HEAD 241 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 130,000,000,000 be granted from and out of the Consolidated Fund of the Democratic Socialist Republic of Sri Lanka and from any other fund or moneys of the Government, or from any moneys received in loans by the Government in respect of the financial year commencing on January 1, 2024 and ending on December 31, 2024, to meet the Recurrent Expenditure under Head 241 - State Enterprises Department, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 18 SUPPLEMENTARY SUM: HEAD 249 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 18,000,000,000 be granted to meet the Recurrent Expenditure under Head 249 - Department of Treasury Operations, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 19 SUPPLEMENTARY SUM: HEAD 243 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 32,641,000,000 be granted to meet the Recurrent Expenditure under Head 243 - Department of National Budget/Development Finance Department (as printed) Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 20 SUPPLEMENTARY SUM: HEAD 126 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 9,829,000,000 be granted to meet the Recurrent Expenditure under Head 126 - Minister of Education, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 21 SUPPLEMENTARY SUM: HEAD 224 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 8,331,000,000 be granted to meet the Capital Expenditure under Head 224 - Sri Lanka Air Force, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 22 SUPPLEMENTARY SUM: HEAD 253 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 1,400,000,000 be granted to meet the Recurrent Expenditure under Head 253 - Department of Pensions, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 23 SUPPLEMENTARY SUM: HEAD 102 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 3,213,000,000 be granted to meet the Recurrent Expenditure under Head 102 - Minister of Finance, Economic Stabilization and National Policies, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 24 SUPPLEMENTARY SUM: HEAD 151 - PROGRAMME 02 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 1,533,000,000 be granted to meet the Capital Expenditure under Head 151 - [Ministry name as printed], Programme 02 - Development Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 25 SUPPLEMENTARY SUM: HEAD 111 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 10,826,000,000 be granted to meet the Recurrent Expenditure under Head 111 - Ministry of Health, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 26 SUPPLEMENTARY SUM: HEAD 126 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 1,800,000,000 be granted to meet the Recurrent Expenditure under Head 126 - Minister of Education, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 27 SUPPLEMENTARY SUM: HEAD 103 - PROGRAMME 02 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 400,000,000 be granted to meet the Capital Expenditure under Head 103 - Ministry of Defence, Programme 02 - Development Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.

¶ 28 SUPPLEMENTARY SUM: HEAD 232 - PROGRAMME 01 Order read for resuming Adjourned Debate on Question - [05th December, 2024] “Resolved, that a sum not exceeding Rs. 1,400,000,000 be granted to meet the Recurrent Expenditure under Head 232 - Department of Prisons, Programme 01 - Operations Programme, as set out in the Annex.” Question again proposed. Question put, and agreed to.