The Hon. (Dr.) Dammika Patabendi - Minister of Environment

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to speak in the 2026 Budget debate. Students in the galleries might get a wrong impression from how some in the Opposition engage in this debate—treating it as a preferential-vote contest. A Budget debate is to discuss how to set the economic path for 2026 and whether the strategies fit. We ask the Opposition to set an example to the people—this is not about personal vote counts.

¶ 02 For 76 years, Budgets were shaped by preferential politics. Some Members had to camp at the Finance Ministry to get money to their districts. Personal agendas and narrow policies led us to tragedy and denied a future to our youth. Under the National People’s Power Government, we have presented our second Budget and taken the country forward with unprecedented economic outcomes over the past year. The 2026 Budget is built on six strategic pillars: sustainable and inclusive growth; export diversification for higher income; debt sustainability; strengthening the productive economy; eradicating rural poverty; and promoting digitalization.

¶ 03 Some in the Opposition ridiculed a “road through the sea” saying fish cannot move. We are discussing macro direction and policy, not such trivialities. Despite obstruction, we will move the economy forward.

¶ 04 As to results: GDP growth in 1H 2024 was 4.6%; in the same period of 2025 it rose to 4.8%. Unemployment dropped from 4.5% to 3.8% in Q1. Merchandise exports increased from USD 8.5 bn to USD 9.1 bn; worker remittances from USD 4.8 bn to USD 5.8 bn; tourism earnings from USD 2.3 bn to USD 2.5 bn. Revenue rose from Rs. 2.9 trillion to Rs. 3.8 trillion, exceeding targets. The primary surplus increased from Rs. 0.8 trillion to Rs. 1.5 trillion, also exceeding targets. We have stabilised the economy through proper management free of corruption.

¶ 05 A key feature is technology. To win economically, we must adopt advanced technologies—digitalization is one of the six pillars. In our first year, we launched e-payments; in Q1 2025, over Rs. 200 billion of Government payments were processed via LankaPay. From 1 January 2026, service fees for electronic payments by Government institutions will be waived. Sri Lanka can be a regional data-centre hub; Rs. 500 million is allocated in 2026 to catalyse investment. For AI and cloud capacity, Rs. 750 million is allocated. We will expand access by providing broadband vouchers to students from low-income families. We will simplify and fast-track approvals for telecom towers and exempt new tower-related taxes for five years to accelerate digital infrastructure. We will establish an “AGNI” fund with Rs. 1,500 million (USD 5 million) initial State support to develop the startup ecosystem. We will also set up a Virtual Special Economic Zone for digitalization.

¶ 06 In energy, we will leverage technology—data centres, transport electrification, green hydrogen, and green ammonia.

¶ 07 This Budget is not only about economic data; it lays out a vision, roadmap, and strategy to take the country onto the right path.

¶ 08 Thank you.