Hon. Ravi Karunanayake

¶ 01 Hon. Deputy Chairperson, thank you for the opportunity to speak on these regulations under the Imports and Exports (Control) Act. What we are doing is providing a temporary answer, but policy solutions would have been better. The Government must take tougher decisions. Some 60–70,000 cars are still stuck in Hambantota because there is no proper decision or solution on cross-border LCs. We need policies to prevent recurrence. The Department of Imports and Exports Control delayed decisions, causing this.

¶ 02 On transport, 2023 public transport share was 45%; today it is down to 37.5%. Three-wheelers fell from 6% to about 5%. Rail is 7–8%. The result is increased cars and bikes; as public transport falls, fuel imports rise. Car imports must not be done merely through taxes but through coherent transport policy. In 2022 there were 18,000 buses; today about 13,000. SLCTB buses from 4,500 to 3,100. We must uplift public transport.

¶ 03 We had an opportunity to bring LRT. Due to opposition, it stalled; Bangladesh proceeded and we watch. LRT would have reduced fuel and improved public transport. Car numbers are rising; fuel imports will also rise.

¶ 04 On renewable energy: IMF and World Bank underscore making it a state policy. We should reduce fuel imports by utilizing our natural endowments.

¶ 05 Ministers now seem to be coming on the right path; when we implemented tough measures earlier, we were criticized. Being in Government is harder than being in Opposition. When Minister Bimal Ratnayake tells station staff “if you can’t work, please leave,” that decisiveness is correct—delivery matters. We spend Rs. 1.6 trillion on salaries and Rs. 1.8 trillion on pensions; we must ensure productivity. Minister Nalinda Jayatissa says we cannot pay more; yet the private sector wages were raised by 9,000 from January—this inconsistency must be addressed, though the intent is good.

¶ 06 As Hon. Sunil Handunnetti noted: “Government to step back from running businesses, focus on facilitation.” When we said this, many jumped. Now it is understood that effectiveness comes when Government and private sector both contribute—the “disease” of state-running-business should spread to other Ministers—i.e., adopt facilitation. The beneficiary must be the consumer.

¶ 07 See Telecom: partial commercialization 15–20 years ago—then a phone took months; now moments, at lower prices. That is how to move forward. For tourism, we need new vehicles; the sector is still using 15–20-year-old vehicles; with current tax structure it is hard. If we target 2.6–5.0 million tourists by 2030, provide required infrastructure and policies.

¶ 08 On sugar: when we questioned, we were told the Government would run the industry; now realities are understood. Hence: “Government to step back from running businesses, focus on facilitation.” Governments must set policy; not run business. When Government runs business, losses follow; value comes from entrepreneurship—Government and private working together.

¶ 09 On today’s Gazette decisions: we must also watch financial sector developments. HSBC, after about 135 years here, is exiting retail banking; Nations Trust Bank will take it over—commendable. But if HSBC only cherry-picks profitable activities like T-bonds and bills without aiding development, we should make such selective access more difficult; otherwise there is no contribution to national development.

¶ 10 We must maximize exports as debt obligations rise from April 2028. Around USD 3.0–3.5 billion are due now; USD 6.7 billion in 2028. We need export earnings and reserves to repay. The Government must take sharp decisions to facilitate exports. If it takes weeks to clear a container and further weeks for approvals, our competitiveness erodes. August data shows overall exports up to USD 1.6 billion, but apparel down ~6%—partly due to US tariff issues from the Trump era. This USD 5 billion sector needs strengthening; while India faces 50% tariffs, we have 30%—not enough; we must improve.

¶ 11 Hon. Deputy Chairperson, I request more time.