The Hon. (Dr.) Pathmanathan Sathiyalingam

¶ 01 Hon. Presiding Member, thank you for the opportunity to speak on the 2026 Budget. At independence, Sri Lanka’s economic indicators were among the best in Asia — second only to Japan, it is said. But wrong political, economic, educational, and social policies marginalized communities, fueled ethnic divisions, and ultimately bankrupted the country, bringing people to the streets. The current Government, with IMF support, tighter taxation, curbing waste, and rising tourism income, has brought some stability. I commend the Government.

¶ 02 To sustain this, the Government must maintain strict fiscal management and, importantly, adopt political, economic, and educational policies that treat all communities equally. A Budget is not just finance; it is a policy document shaping political economy and society, laying the foundation for peaceful, inclusive development.

¶ 03 In the 2026 allocations, about 65% of total spending goes to six ministries: Finance/Planning/Economic Development; Public Administration/Provincial Councils; Health and Mass Media; Transport, Highways, Ports and Civil Aviation; and Defence. This ensures administration, essential services, and debt servicing. However, key ministries like Education, Higher Education, and Vocational Training receive Rs. 301 billion — 6.79% of the total; Agriculture/Livestock/Resources/Land and Irrigation receive only Rs. 221 billion. Energy and Digital Economy also receive limited funds, though with higher capital allocations — commendable. Yet, 16 years after the war, Defence still receives Rs. 455 billion — 10.26% of the total. How is this justified? Such a large Defence allocation will not contribute to peace or economic development.

¶ 04 Women and Children’s Affairs receives 0.37%, and Social Empowerment 0.87% — both crucial for human capital. The low allocations are disappointing. Overall, 68% of funds go to recurrent expenditure and 32% to capital. For a productive, export-led economy, capital spending needs to be higher; 32% seems inadequate.

¶ 05 Allocations alone change nothing unless designed for measurable outcomes. To ensure sustainable growth, we must reduce social disparities, attract appropriate investments, expand exports, control imports, and support SMEs with grants, technology, and concessional credit.

¶ 06 On eradicating rural poverty: enable productive rural livelihoods. Land is vital. Many returning people in our areas still find their lands held by various departments. How can SMEs contribute if their lands are withheld? Release those lands so they can cultivate. In many places, especially post-war returnee areas, agricultural lands and tanks are occupied by the Forest Department; many tanks have seen no rehabilitation in over 40 years. Please address this.

¶ 07 We must also attract domestic and foreign investors to the Northern Province, which has low per-capita income and low GDP contribution. There are no concrete proposals to establish investment zones there. Investors say inputs must be imported and costs are high. Therefore, utilize the Indian Government’s USD 61.5 million assistance to develop Kankesanthurai (KKS) Port, which currently looks like a film set for fight scenes. Also develop the Talaimannar landing site.

¶ 08 Tourism: though much is said, the North and East are neglected. There are no specific plans, no infrastructure, and no investment strategy for tourism and hospitality there; no marketing plan for the North.

¶ 09 The Clean Sri Lanka programme is not just about environmental cleanliness but building a clean society — free of bribery, corruption, drugs, racism, linguistic and religious chauvinism, and social stratification. Yet, in our areas, some departments discriminate by language and ethnicity. Where Tamil people have resettled, agencies like Mahaweli Authority and Forest Department allow Sinhala settlers to clear thousands of acres without permits, while blocking Tamil cultivators. The Government must act, to make Clean Sri Lanka a reality.

¶ 10 We also welcome “One Country — Unified National Action” against drugs. Establish voluntary rehabilitation centres nationwide. In the Northern Province, when the Provincial Council functioned, five medical rehabilitation centres existed but now lack staff and are underutilized — please fully resource them for this purpose.

¶ 11 On social protection: under “Aswesuma”, allocations for persons with disabilities are very low. Moreover, citing high electricity bills, benefits have been cut off for many differently-abled people who depend on electricity. Do not deny Aswesuma due to electricity costs; they cannot survive without it. Thank you.