The Hon. (Dr.) Anil Jayantha – Minister of Labour and Deputy Minister of Economic Development

¶ 01 Hon. Presiding Member, in today’s debate on these special Gazettes, points were raised on revenue management. For 2025, we have targeted Rs. 4,990 billion in revenue and we are implementing the collection framework as presented with the Budget. However, many arguments today ranged beyond the subject. Merely isolating issues like the stamp duty increase or regulations under the Imports and Exports (Control) Act will not reveal the true macroeconomic condition; we must grasp the whole.

¶ 02 When we took office, we assumed responsibility to stabilize the economy and the country, both domestically and internationally. Institutions with credible expertise — including State technocratic bodies — now indicate that the foundation of stabilization is being laid and that we are progressing.

¶ 03 You would have seen the recent joint conference by the IMF, the Central Bank of Sri Lanka and the Ministry of Finance. The IMF’s First Deputy Managing Director Gita Gopinath, and our Hon. President Anura Dissanayake, both recognized the stabilization underway. Growth of around 5 percent was achieved in 2024; similar growth is expected in 2025. The Hon. President also emphasized that, while the IMF’s intervention helped restore growth, as we expand our economy based on our sovereignty, this extended facility with the IMF should come to a close. Gita Gopinath acknowledged that, noting that with the current anti-corruption foundation, Sri Lanka can achieve 7 to 8 percent growth, beyond the earlier 5 percent projection.

¶ 04 Accordingly, we posted 4.8 percent growth in Q1. Though last year was 5 percent and this year’s Q1 is 4.8, what matters is the trend across the year. Achieving 4.8 percent even when our capital expenditure was constrained — due to operating on a Vote on Account at the start and only later the full Budget — is significant. This shows we can reach our target.

¶ 05 On revenue, performance is notable. By end-May, Customs had a target of Rs. 730 billion but achieved Rs. 794 billion — 109 percent. Inland Revenue collected Rs. 907 billion — a 101 percent performance. Excise: Rs. 114.8 billion — 103 percent. Some in the Opposition spread fear, e.g., claiming Rs. 970 billion collected from vehicles alone. As of 19 June 2025, total Customs collections from all 65 tax lines — vehicles included — were Rs. 919 billion. Quoting Rs. 970 billion for vehicles alone is incorrect and misleading.

¶ 06 The Opposition’s current role seems to be to craft stories that create distrust and fear, to cling to slipping power. Instead, those who truly care about the country should contribute to recovery, not sow fear. They said foreign investors were leaving; in fact, since our Government took office until the end of May, over USD 650 million in FDI has arrived. We accept it is not enough, but we are steadily advancing. Our responsibility is to attract more, not discourage them.

¶ 07 On stamp duty: Under Act No. 43 of 1982, the duty was Rs. 20 per Rs. 1,000. Later, in 2006, it was reduced to Rs. 10. It has not been changed for 20 years. We are not imposing arbitrary extra taxes but pursuing revenue-based fiscal consolidation on a fair and efficient basis. Our effort is to reduce broad-based taxes like VAT in future and increase targeted taxes where identified. We are not doubling all stamp duties. There are nine areas of stamp duty and we are increasing only in one area — immovable property — and that too restoring the 1982 position, not creating a new burden. After 20–30 years of inflation, this is not an undue weight. The proceeds go to Provincial Councils to support their expenditure. It is also wrong to claim that without this increase, salaries cannot be paid; Treasury allocations are in place for local authorities and Provincial Council staff salaries irrespective.

¶ 08 Regarding the Imports and Exports (Control) Act regulations: Generally, imports proceed freely or under licence categories. In 2020, many categories were temporarily restricted. After we formed Government, we worked to normalize the economy and gradually lift restrictions. By October 2023, apart from vehicles, normal categories were restored. Vehicle import restrictions have since been eased in three stages. Remaining items under special import licence categories are being reviewed based on sectoral demand and business conditions. To build confidence, imports must flow, production must grow, and the economy must expand.

¶ 09 We have proposed time-bound measures such as ending the import of used warm clothing within three years, and clarified matters on vehicle assembly/repair parts. It is false to say only diesel engines can be imported and petrol engines are banned — no such ban exists. We have also adjusted for sports equipment machinery and e-bikes. All of this is to stabilize and gradually advance the economy. We will present the State Financial Procedures Statement ahead of Budget 2026, consolidating these measures under a coherent framework.

¶ 10 Thank you.

¶ 11 Question put, and agreed to.

¶ 12 Imports and Exports (Control) Act: Regulations