The Hon. (Dr.) Kavinda Heshan Jayawardhana

¶ 01 Hon. Presiding Member, when discussing this Budget, it feels like old wine in a new JVP bottle. Why do I say so? When late President J.R. Jayewardene opened the economy and undertook reforms, the JVP-led groups took to the streets, killed people, burned property, destroyed state assets, and sacrificed youth. Then, in 2022 when the crisis hit and Ranil Wickremesinghe took charge, we in the Opposition, including Hon. Harsha de Silva and others, urged engagement with the IMF to stabilize the economy. But what did the NPP/JVP say? On every stage, shouting till hoarse, they told the people the IMF is a deadly trap; that they would not follow IMF dictates; that lenders must come on the NPP’s terms or take their money back.

¶ 02 They won power by misleading people with promises of relief, saying they would reschedule the IMF agreement and provide concessions. What did they do after coming to power?

¶ 03 Before I get to that, let me draw attention to a key fact. On 28 April 2023, Parliament debated the Resolution for the Implementation of the Arrangement under the Extended Fund Facility (EFF) of the International Monetary Fund (IMF) for Sri Lanka. The present President Hon. Anura Kumara Dissanayake, the present Prime Minister Hon. M. Amarasuriya, and Hon. Vijitha Herath voted against the EFF. Those who voted against that resolution are now implementing it diligently — the Extended Fund Facility is exactly what is being implemented.

¶ 04 During that 28 April 2023 debate, Hon. Anura Kumara Dissanayake criticized Withholding Tax, VAT, and PAYE, claiming these would crash the economy and harm society; said Kelaniya University’s IT Department could not recruit lecturers; that Anuradhapura Children’s Hospital was closed for days; that doctors were leaving the country; that pursuing the EFF on IMF terms would drive professionals abroad; and he asked how the Government would build foreign reserves to USD 10.3 billion by 2027. 2027 is just the year after 2026; where in this Budget is the roadmap to reach that figure?

¶ 05 He also said this path is a “sell-to-survive” model — listing Sri Lanka Insurance, Sri Lanka Telecom, the Ceylon Hotels Corporation’s “EJ” hotel, Lanka Hospitals, and Litro Gas — and cited their 2022 profits: Lanka Hospitals Rs. 2,333 million, Sri Lanka Insurance Rs. 10,410 million, SLT Rs. 13,846 million, Ceylon Hotels Corporation’s EJ Hotel Rs. 360 million, and Litro around Rs. 233 million over roughly three months.

¶ 06 This Budget has been crafted strictly in line with the IMF’s EFF. What will they do — after 2026 — with these profit-making entities? Even a government minister said the state need not run businesses and should divest these entities. I now table the list of those who voted against implementing the EFF then, but are enforcing IMF policy now.

¶ 07 We abstained then; we did not vote for it. We say to this Government: the Budget you boast of today is implemented under the same IMF you condemned as a failure and lied to the public about. Admit you misled the people. If you are implementing it well now, we have no issue — but acknowledge the truth.

¶ 08 Before coming to power, you said you would remove VAT on school supplies. You did not. You said you would remove VAT on health services. You did not. And there is no clear plan here for the economy after 2026 into 2027.

¶ 09 [Head notes: Tabled. Placed in the Library.]

¶ 10 Hon. Presiding Member, inflation in August was 1.5% and rose to 2.1% by September. Food inflation rose from 2.9% in August to 3.8% in September.

¶ 11 According to the World Bank’s 07 October 2025 report on Sri Lanka, 22% of people are poor, and another 10% are near the poverty margin, vulnerable to slipping into poverty at any time.

¶ 12 By end-September 2024, total outstanding public debt was Rs. 28,574.65 billion; within nine months it rose to Rs. 29,634.78 billion — an increase of about Rs. 1,060 billion. Domestic debt increased by Rs. 1,211 billion, while external debt rose from Rs. 10,429.04 billion to Rs. 10,828.70 billion — roughly Rs. 400 billion.

¶ 13 SriLankan Airlines recorded a loss of Rs. 7.58 billion in 2024–2025, whereas in 2023–2024 — before this Government assumed office — it made a profit of Rs. 3.8 billion.

¶ 14 Someone said the Opposition is an “onion-and-potato Opposition.” If advocating for struggling potato and onion farmers makes us that, we accept it. The very farmers who helped elect this Government are protesting on the streets today against injustices done to them. As the Opposition, we will fulfill our duty on their behalf.