The Hon. (Dr.) Anil Jayantha - Minister of Labour and Acting Minister of Finance, Planning and Economic Development

¶ 01 Hon. Deputy Speaker, by Cabinet decision dated 01.04.2024, under the theme “Securing Rapid Growth in the Tourism Sector,” Regulations were made to allow the import of 1,000 vehicles—750 cars and 250 buses—for tourism under certain tax concessions. The validity of those Regulations was specified until 30 June 2025. After our Government assumed office and laid the foundation for stabilizing the economy, the Government decided to remove, in three stages, all barriers relating to vehicle imports. Accordingly, from 01.02.2025, all restrictions on importing all categories of vehicles were removed. However, the special concessionary scheme remained in force until 30 June 2025.

¶ 02 Due to several technical delays in clearing the specially permitted vehicles from the port, it became necessary to extend the concession. Therefore, replacing the regime ending on 30.06.2025, we promulgated new Regulations extending the time by three months up to 30 September 2025. To fulfill the legal requirement, the Gazette signed by the Hon. President as Minister of Finance was presented to Parliament.

¶ 03 Given the then prevailing circumstances, the current economic situation, and especially the progress achieved as of 21 September—marking one year of our Government—I wish to outline a few points.

¶ 04 Our Government has presented all work under a central theme: “A Prosperous Country – A Beautiful Life.” This is a serious, long-term undertaking. To realize it, we must act according to prevailing conditions at each moment. Domestically and internationally, unforeseen situations arise—such as reciprocal tariffs imposed by the United States. Managing diverse circumstances, our primary focus in the first year has been economic stabilization. Data presented by economists, analysts and international institutions—including recent data from Bloomberg—shows stabilization has advanced to a satisfactory level and the path ahead has been charted. For development we need investment; without sufficient investment there is no growth. Hence we must build an environment that assures confidence for domestic and foreign investors. We are working on the required legal frameworks and policies. Meanwhile, politically or otherwise, misinformation and distortions continue to sow distrust.

¶ 05 Key elements of stabilization include controlling inflation—the continuous increase in the price of the consumer basket. During crisis periods of previous administrations, inflation rose to 70–80 percent, reducing purchasing power and impeding growth. Under our administration, we managed to bring inflation down to zero or even negative over 11 months—meaning the same basket could be bought for the same price. While recent reports said 1.2 percent inflation in August (some even reported 1.5), our target framework allows fluctuation between positive 2 and negative 2 within an approximate 5 percent flexible inflation target set jointly by the Ministry of Finance and the Central Bank for 2023–2026. Therefore, being within the band indicates target-consistent stabilization. We urge the public to be discerning and for those sharing information to present accurate, official data—because creating suspicion undermines the collective effort to move the country forward.

¶ 06 Stabilization outcomes are evident in growth. International institutions do not project continuous trend growth for a shattered economy; still, given global and domestic data, 3.5 percent growth was considered adequate for stabilization. We have surpassed that in 2025: 4.8 percent in Q1 and 4.9 percent in Q2, reflecting stabilization-supported investment inflows and prudent public capital spending. Private-sector credit expansion through the banking system has also been notable. This is not money printing; money supply expansion has occurred via greater intermediation of existing liquidity and increased deposits. Private-sector credit has increased by Rs. 1.4 trillion this year, indicating positive momentum. By contrast, in Q2 2024, growth was negative 4.1 percent.

¶ 07 A vital part of stabilization is Government revenue. Despite criticisms that targets would be missed, by August 2025—eight months into the calendar year and one year into our tenure—we have exceeded all major targets. The Inland Revenue Department’s target of Rs. 1,500 billion stood at Rs. 1,545 billion as at 23 September (103%). Sri Lanka Customs exceeded the target of Rs. 1,485 billion, collecting Rs. 1,679 billion (113%). The Excise Department exceeded its target of Rs. 167 billion, reaching Rs. 176 billion (105%). This demonstrates that we have indeed achieved stability.

¶ 08 Regarding today’s Regulations under the Imports and Exports (Control) Act on vehicle imports, there are two objectives: raising revenue and properly managing reserves. Our full-year revenue target from vehicle imports is Rs. 450 billion. As of 23 September, Sri Lanka Customs has already collected Rs. 470 billion—surpassing the target. Let us speak on verified figures rather than sow uncertainty.

¶ 09 Within the IMF programme we had challenging targets: reducing debt ratios and achieving a primary surplus of 2.3 percent of GDP. These are austerity-type measures and difficult for the public. Nonetheless, we have continuously managed the primary balance during 2025. The target for the primary surplus this year is Rs. 750 billion; we have reached Rs. 970 billion to date. Although expenditures will rise later in the year, we can meet the target more easily.

¶ 10 Even though the overall budget deficit was estimated at Rs. 2,200 billion, we will likely conclude at a lower figure, and we are avoiding unnecessary borrowing. External sector indicators for the first eight months are also strong: exports US$ 11.6 billion, remittances US$ 5.18 billion, and tourism earnings US$ 2.29 billion—the highest increases recorded for a comparable period in history.

¶ 11 At the point of concluding, let me link to the address delivered yesterday by H.E. the President at the UN General Assembly in the United States. He laid out our country’s vision, our interventions, and emphasized global issues requiring collective action—poverty, narcotics and crime, and eliminating corruption. He underscored that while fighting such threats is daunting, failing to do so would be far more devastating. Technology and democratic values create global opportunities for shared problem-solving; we are open to that path. Let us work together to rebuild our nation with humanity. Thank you.

¶ 12 Question proposed.