The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Speaker, those who bankrupted the country now find it hard because we have changed the political culture and are strengthening institutions and internal controls. Those who once leveraged local administrative power to mobilise crowds for Rs. 1,500 or Rs. 2,500 found on May Day they cannot do so anymore. As we steadily take the country forward, pointing out shortcomings is fine, but you cannot derail us.

¶ 02 We opposed the original Port City Act because it created an entity unaccountable to Parliament and Sri Lankan law. We amended it to align with international standards, protect national stability, and ensure accountability to Parliament. Among current changes, we must make Port City a duty-free zone to spur commerce—extending the US$2,000 purchase window to four days to increase flexibility and transactions. Regarding labour, as the State Minister explained, within free zones the engagement is through professional agreements between the institution and the employee; factories are not the model here, but service entities. Our changes align with international free zones.

¶ 03 They say no investors came for 10 years; that is why we changed orders and incentives. We now have 233 active leads worth US$4.6 billion, with US$1.4 billion already approved and 134 projects active. The economy is improving: we target 5 per cent growth in 2025; industry grew 8 per cent last year; inflation was 2.2 per cent; BOI drew US$1.1 billion; private sector credit was Rs. 2 trillion, including Rs. 163 billion to agriculture, Rs. 538 billion to industry, Rs. 449 billion to services, and Rs. 400 billion to personal/housing—private investment credit up 126 per cent. This shows momentum. On taxes: under Gotabaya, tax-to-GDP fell to 8.2 per cent, bankrupting the State. We have raised it to 16.6 per cent, exceeding the 15.3 per cent IMF target and heading to 18.5 per cent this year. Our aim is to broaden the base and, over time, reduce VAT back towards 10 per cent, the global norm, as stability returns. Merging SSCL for financial services into the 20.5 per cent single levy is a simplification, not an increase.

¶ 04 On corruption, previously there was no Right to Information; today investigations proceed with transparency, without political interference, through a strengthened administrative apparatus. Cases will conclude; do not try to pre-empt outcomes.

¶ 05 This is a people’s Government. May Day showed public support. The investments we are catalysing will materialise in 2026–27 despite global headwinds. Thank you.