The Hon. (Dr.) Upali Pannilage - Minister of Rural Development, Social Security and Community Empowerment

¶ 01 [4.51 p.m.]

¶ 02 Hon. Presiding Member, thank you for the opportunity to comment on the Regulations under the Import and Export (Control) Act No. 1 of 1969.

¶ 03 Throughout this debate some in the Opposition tried to obfuscate the roots of our economic crisis. These Regulations predate our Government; we are extending them to facilitate limited vehicle imports to help manage the severe collapse in tourism after the broader economic breakdown.

¶ 04 Tourism is critical. In 2018 we had around 2.5 million tourists generating about US$ 4.4 billion. Thereafter it plunged, and revenues were largely lost. The NPP Government prepared a plan to revive tourism: this year we targeted 2.5–3 million arrivals; by 2030, four million, significantly contributing to the economy. While we work toward this, some in the Opposition say not to talk about the collapsed economy—yet it did collapse. Over decades, alternating ruling parties brought us here. In 2022 we defaulted because we could not service foreign debt—close to US$ 38–40 billion in obligations. Besides bilateral and multilateral debt, the heaviest burden was International Sovereign Bonds (ISBs). Who took most of these? Under the 2015–2019 administration—formed by those two factions together—Sri Lanka took US$ 12.5 billion of the roughly US$ 15 billion ISBs outstanding. That was a key turning point. Did that debt build the economy? Growth was 5% in 2015; by 2019 it had turned negative. Debt did not fix the economy.

¶ 05 The NPP Government’s foremost task is stabilization. Within roughly a year, we have achieved: GDP growth moving from +0.2% (2019) to -7.2% (2022) to +4.9% (by Aug 2025); unemployment down to 3.8%; inflation around 1.2%; exchange near Rs. 300 per US$; bank interest to single digits (~8.2%). We laid the groundwork to move from stabilization to growth toward our “Prosperous Country – Beautiful Lives” vision.

¶ 06 Question put, and agreed to.