The Hon. Wijesiri Basnayake

¶ 01 Hon. Presiding Member, today we are discussing regulations under the Monetary Law Act regarding the repatriation and conversion of export proceeds to Sri Lanka. Exporters bring income to this country. In light of global conditions, timeframes have been adjusted to help us, as a nation, manage the present situation. From January to April, there has been notable progress. Especially from apparel and textiles, we brought in USD 1,619 million. Likewise, transport and logistics, ICT, tea, mineral oils, coconut products, and rubber products have generated significant income.

¶ 02 Opposition Members, notably the Chair of COPF, claimed the Government intends to curtail business freedoms and impose compulsion. We must understand: the world is in a turbulent, crisis period. We must analyze the political, economic, social, and technological environments—the test factors—and, through such analysis, craft good strategy. The effects of the global crisis spill into our economy; within this context, we have to decide. The rupee has depreciated relative to the dollar; import costs, including fuel prices due to the Middle East conflict, as well as freight and insurance, have risen. Vehicle imports have increased, creating higher dollar demand. While we build reserves and earn dollars, unexpected global events require measures—hence the compassionate request that exporters repatriate proceeds promptly and convert within a shorter period. This is not coercion; the Opposition is fearmongering.

¶ 03 Remember 2022—the greatest economic and social tragedy since Independence—caused by mismanagement: a massive FX shortage, debt service suspension, fuel and medicine shortages, inflation above 70%. Some try to equate today to 2022. It is not so. Then, revenue was 8-9% of GDP; today we have brought it to around 14-15%. Tax collection efficiency and the base have increased through such strategies. The Opposition Leader says we are strangling people with taxes; taxes are the State’s main revenue. If not via taxes, what alternative revenue paths do you propose?

¶ 04 Reserves are now at a higher level. In 2022, gross reserves were about USD 2 billion; by end-2025 we target USD 6.8 billion. Tourism and remittances have risen, helping build reserves. IMF and CBSL reports indicate 2025 growth around 5%. Inflation, which exceeded 70% in 2022, is now back to single digits. We also exceeded the IMF primary balance target: against a 2.3% primary surplus target for 2025, we can reach 5.4% due to our tax policy. In the first three months of 2026, Government revenues and grants reached Rs. 1,499 billion, a 40.4% increase over the same period in 2025. Remittances in May alone were USD 847 million—about a 32% increase year-on-year. We are managing the economy accordingly.

¶ 05 On FDI: through Port City Colombo land development over the next five years, we plan to generate about Rs. 125 billion worth of developments, and we project USD 3.62 billion in foreign investments, creating over 10,000 jobs. We have strengthened ties with countries like Maldives and Vietnam, concluding beneficial agreements for Sri Lanka.

¶ 06 Therefore, how can the Opposition peddle false fear? We are advancing development and aiming to provide the living standards our people deserve. Thank you.