The Hon. Amila Prasad

¶ 01 Thank you for the opportunity, Hon. Presiding Member. This is our opportunity to comment on the second Budget presented by the new Government. A Budget is not merely a statement of revenue and expenditure; it is a document people watch with hope to see the direction in which the future is being taken—whether prices of essential goods will reduce, whether jobs will be created for youth, whether the business environment will be conducive for entrepreneurs, and whether investors will get policy certainty.

¶ 02 The central feature we observe throughout this Budget is the crisis the Government faces in managing a liberal economy while coming from a Marxist ideological background. We see a mismatch: a leadership that once criticized capitalism and championed Marxism is now managing a capitalist economy; Marxist ideas are layered over it, creating friction.

¶ 03 The President, in a four-and-a-half-hour speech, said import expenditure has increased, and therefore the economy is recovering. I looked into what has actually increased. Imports have three main components: consumption goods, capital goods, and intermediates. The statement is true that imports increased; however, it is consumption goods—everyday food items—whose import bill has risen, by around 51 percent. That means consumer food imports, not capital or intermediates, have driven the increase. A party that pledged to limit imports and promote domestic production has failed to control this trend.

¶ 04 Last year too, a Budget was presented with about Rs. 7,000 billion in expenditure, line by line. But in the end, those funds were not spent as planned—particularly on capital expenditure—due to the inefficiency of the administration, not merely the President’s fault. The inability of officials and agencies to take the allocated funds to the field and execute projects is the cause. I call on the Government: stop just raising hands like signal lights inside Colombo; go to the villages and actually execute the allocated expenditures.

¶ 05 Next, the President aspires to maintain 7 percent sustained economic growth. For that, domestic and foreign investment must increase substantially—at least four to five times the present flow. What revolutionary measures in this Budget will attract such multiples of investment beyond the usual, traditional steps? Without genuinely transformative actions, sustaining 7 percent growth is not possible.

¶ 06 The Government came to power on the slogan that stopping bribery, corruption, waste, and fraud would develop the country. Did you conduct comprehensive forensic audits over the past two decades to identify where theft occurred and how to plug the leaks? Has money been allocated for this? A year has passed. If not, that slogan was merely a tool to gain power, with no genuine intent to quantify and eradicate corruption.

¶ 07 On corruption, every time you speak, you invoke the Commission to Investigate Allegations of Bribery or Corruption. Today, the Director-General reportedly said the Government is attempting to control the Commission via finances and that they do not have financial independence. You championed the anti-corruption law; it has been in force for two years. Yet, the foremost institution needs financial independence which, according to its head, has not been granted. What does that mean? One pathway for the Government and another for the Opposition—starving the Commission of funds so it cannot investigate the Government. Please honour your mandate and provide financial independence to the Commission. We, more than you, want corruption ended because you said stopping it would improve the economy.

¶ 08 Next, the President’s view on university students. To gain power, you sent university students and unemployed graduates to the streets, organized marches, and used them as instruments. Now you say: stay at home, study, and pass your exams. If you had said this 30 years ago, the country would be far ahead today. We too say: no more mass recruitments. Do not be deceived again. Seek jobs that match your qualifications; we will support you.

¶ 09 On cooperatives: in Opposition, you said cooperatives would reduce consumer prices and help producers. But in the Southern Province, cooperative outlets are failing. You could not reduce consumer prices through cooperatives or secure better prices for farmers. So that promise too has collapsed.

¶ 10 To give credit where due: according to reports, the President has submitted for Parliamentary approval a Gazette to exempt companies in the Colombo Port City from the Termination of Employment of Workmen Act. He also moved to cancel vehicle permits—good in principle. But canceling permits affects not just MPs; it affects doctors and others who received such benefits in lieu of lower salaries. If you remove such benefits, either increase salaries or provide alternatives; otherwise, competitiveness in those professions will drop.

¶ 11 On plantation workers’ wages: increasing them is good. But you are also using public tax money to top up wages in the private sector. That creates a problem. What happens when potato and onion farmers or apparel workers ask for the same? Many in the private sector with variable pay will demand support. Under what fiscal discipline do you justify using general tax revenue to pay private-sector wages?

¶ 12 Yesterday, government members cheered during Hon. Harsha de Silva’s speech, saying, “Look, even Harsha says the economy is doing well,” because unexpected vehicle imports boosted revenue, and the Treasury swelled. But beyond vehicle-related taxes, did other revenues rise? Many SOEs—CPC, CEB, and others—are still making losses compared to last year. Instead of addressing underlying issues, you trumpet a windfall like a sweep ticket.

¶ 13 The President says, “The State is not for doing business,” while Ministers say, “The State must run state enterprises.” Such mixed messages erode investor confidence.

¶ 14 Finally, a Deputy Minister told an Archimedes story saying the economy turned 360 degrees. Turning 360 degrees means returning to the same place. That is what is happening—going in circles. Do not spin 360; turn 180 and truly change course. With that reminder, I conclude. Thank you for the time.