The Hon. (Dr.) Prasanna Gunasena - Deputy Minister of Transport and Highways

¶ 01 Thank you, Hon. Deputy Speaker.

¶ 02 To the Leader of the Opposition’s query on stabilization by 2028 when debt service falls due, I will embed relevant answers within my remarks. Today’s debate concerns tourism and vehicle imports, so I begin with tourism.

¶ 03 In 2018 Sri Lanka received its highest tourist arrivals—about 2.3 million. A tourist spends about 8.5 days in Sri Lanka on average, and around US$ 172 per day. To scale up this industry, we must increase both length of stay and per-day spend.

¶ 04 As at 21 September, 1,678,346 tourists have arrived—our highest for this point in the year. Month-on-month comparisons show increases of 10–20 percent over last year. Tourism earnings thus far are US$ 2.3 billion. With the upcoming peak month, 2025 can become the year with both record arrivals and record earnings. This is a Government achievement.

¶ 05 There are spillovers. About 24.1 percent of tourists flew on SriLankan Airlines; its revenue has grown by more than 10 percent due to increased passengers—an ancillary benefit.

¶ 06 Second, remittances: for the first eight months, remittances amount to US$ 5,116 million—up 19.3 percent over Jan–Aug 2024. Workers avoid remitting when the currency is unstable. Even with LCs opened for US$ 1.5 billion worth of vehicle imports, we have kept the rupee stable, giving confidence to remitters. If we annualize the first eight months, 2025 will be our best year for remittances.

¶ 07 Third, exports: by August 2025, goods and services exports total US$ 11,554 million, up from US$ 10,850 million last year—growth of 6.61 percent. This reflects improved competitiveness and market diversification with deeper global integration.

¶ 08 Fourth, FDI: in the first six months of 2025 we received US$ 507 million versus US$ 252 million in H1 2024—an increase of 101 percent. By July, a further US$ 100 million (US$ 607 million cumulative), and by August another US$ 120 million (US$ 720 million cumulative). The month-by-month trajectory is rising. Through BOI, we have 79 investment proposals—40 new and 39 expansions—totaling US$ 4.6 billion, of which US$ 3.8 billion are foreign. This is how we stabilize the dollar economy.

¶ 09 On revenue, the Excise Department’s target was Rs. 173 billion; as of yesterday, collections are Rs. 185.68 billion—an excess of over Rs. 12 billion. Customs revenue is around Rs. 1,600 billion. Among SOEs under our purview, despite paying VAT, operational profit is up 66 percent in the first half year compared to last year—Rs. 24.4 billion vs. Rs. 14.68 billion. BIA operational profit is up 78 percent. Sri Lanka Telecom has improved by about Rs. 650 million over the comparable period. CPC recorded Rs. 18 billion profit in Q1. Consequently, in the first half we reduced the revenue–expenditure gap by 32.3 percent—by both curbing expenditure and significantly increasing revenue.

¶ 10 On integrity and transparency, our Members have filed asset and liability declarations. The same rigor should apply to all public officials. Where concerns arise, these must be pursued before the law—not just on social media—comparing submissions over multiple years.

¶ 11 On narcotics, recent seizures are massive: 928 kg of heroin, 1,396 kg of methamphetamine (“ice”), and 11,192 kg of cannabis. Had the people not changed the previous administration in 2024, per-capita narcotics consumption would be the grim statistic today. We changed that trajectory.

¶ 12 To the question on fiscal stabilization by 2028: we are tracking key fiscal anchors—primary surplus of 2.3 percent of GDP (revenue minus non-interest expenditure), Public Debt-to-GDP reduced from 128 percent in 2022 to around 95 percent by 2032, and Gross Financing Needs kept around 12–13 percent during 2027–2032. We are managing to these targets with transparency.

¶ 13 Let me conclude by quoting H.E. President Anura Kumara Dissanayake from his address to the 80th Session of the UN General Assembly yesterday: “Our first steps may be difficult. But if we take the right step with courage, I believe thousands more steps will follow with us.” We believe this, and so do the people of Sri Lanka. Thank you.