The Hon. Sajith Premadasa - Leader of the Opposition

¶ 01 Hon. Deputy Chairperson of Committees, during this economic debate, certain words seem “forbidden”: people’s pressure, people’s discontent, people’s frustration, inability to live. Poverty has risen to 30–40 percent; industries are collapsing; thousands are losing jobs; exports are weakening; farmers, fishers, workers, the public, and entrepreneurs are all struggling.

¶ 02 You boast of primary balance and revenue achievements. How did you achieve them? By taxing. Anyone can raise taxes to boost revenue and the primary balance. Once, MSMEs and large firms created tens of thousands of jobs. Now their activity is depressed. You could launch 200 factories like we did in apparel; but you have not. You raised personal, corporate, VAT from 8 to 18 percent, added a 2.5 percent SSCL, and brought 97 previously exempt items into tax from January 2024. But one tax you did not raise is the cigarette tax. WHO recommends 75 percent; in 2018 it was 74 percent; now you have reduced it to 66.8 percent. Income tax up, VAT up, SSCL up, corporate tax up—but cigarette tax down. If Rs. 9 of Rs. 12 per cigarette was tax then, now it is Rs. 8—a rupee less. The revenue foregone is Rs. 17.3 billion per year—more than the disaster budget of Rs. 14.8 billion; more than nutrition and safety allocations of Rs. 12.9 billion; and far above maternity benefit costs of Rs. 7.2 billion. With one pen stroke, raise Rs. 17.3 billion and give real relief; reduce essential prices.

¶ 03 An Hon. Member claimed prices have been cut; I challenge you—go among ordinary people and randomly ask 10 or 20 whether they feel prices have fallen.

¶ 04 You promised to make Sri Lanka a logistics hub; instead, we have become a cyber-fraud hub. Due to various regulatory relaxations, scammers from Cambodia and the Philippines have moved here. Take action immediately.

¶ 05 Lastly, you cut the 15 percent interest previously given to senior citizens’ deposits. Many elderly and retirees relied on that interest to buy medicine and survive. Do not spin fairy tales in this Chamber; go to the streets, listen to the people’s pain, and deliver solutions.

¶ 06 Thank you.