The Hon. Sarath Kumara, Attorney-at-Law

¶ 01 Hon. Speaker, for a long time we held a vision; now, with this second Budget of the people’s government, we are realizing it. A year into stabilizing an uncertain, fragile nation, we present the 2026 Budget with discipline and targets. In 2025 we restored macro stability, fiscal discipline, and momentum across sectors.

¶ 02 We have substantially advanced debt restructuring and regained confidence of domestic and international investors. International ratings now reflect progress toward debt sustainability: Fitch at CCC+, S&P at CCC+, and Moody’s at Caa. We also saw export growth from USD 8.5 to 9.1 billion; worker remittances from USD 4.8 to 5.8 billion; tourism receipts from USD 2.3 to 2.5 billion; revenue and grants from Rs. 2.9 to 3.8 trillion; and the primary balance from Rs. 0.8 to 1.5 trillion, comparing Jan–Sep 2025 with Jan–Sep 2024.

¶ 03 When we took over, those who ran a “cashew uncle” regime tightened belts on the people, curtailed rights and invited us to walk to 2048 over a rope bridge. The intelligent public joined us to build a democratic government instead.

¶ 04 In contrast to past policies that froze recruitment, promotions, and regularizations, we are rebuilding the state service. We decided to recruit about 75,000, resume pensions to those deprived, and regularize around 10,000 temporary staff. We strengthened fiscal metrics acknowledged even by international bodies and fair-minded Opposition members.

¶ 05 For 2026, our six strategic pillars include: - Inclusive and sustainable growth with public participation - State–private partnerships - Value-add industrialization - Diversified exports and trade agreements (reviewing old ones and pursuing new FTAs) - Ensuring debt sustainability - Strengthening a productive economy, ending rural poverty, and advancing digitalization

¶ 06 On debt service, only USD 487 million remains to be paid this year, and we are prepared to do so. For 2028, we anticipate an additional USD 761 million relative to 2025; planning is underway. IMF in 2022 was dissatisfied because output did not match borrowings and project prioritization failed—failures of those who pushed the country into the abyss. We will not repeat it.

¶ 07 We have also provided for governance and anti-corruption measures in the Budget. Those who once ran to COPE with footnotes over the bond issue now lecture us; we will proceed with institutional remedies.

¶ 08 I conclude with the President’s words from the Budget’s closing: We carry the last prayers of those who sacrificed their dreams for a more beautiful country, and we are bound to fulfill them. Thank you.