The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Deputy Speaker, alongside lifting the ban, we structured phased reopening: first, buses for passenger transport; second, commercial vehicles for business; third, private vehicles. Simultaneously, Customs Import Duty changes were made: the previous 20% duty was increased by an additional 10% to 30%, considering reserves protection, the rupee’s value against the dollar, and other factors. Since imports were banned for years, a sudden inflow could impact reserves and the exchange rate; thus the higher rate was set.

¶ 02 Projections show LCs opened and arrivals are proceeding successfully. With macro stability—reserves now about USD 6.5 billion, projected to surpass USD 7 billion by year-end; the rupee stable against the dollar despite global tariff issues—we see sound management.

¶ 03 Inflation has stabilized, moving from negative to within target; interest rates declined; credit conditions improving. Debt ratios have moved to more sustainable levels. State revenue reached a historic high last year and is projected to be higher in 2025. We are increasing revenue while prudently managing and cutting unnecessary expenditure. Exports and remittances are to be enhanced. Customs and income tax reforms aim at efficiency and transparency.

¶ 04 Internationally, ratings agencies have recognized our trajectory. The World Bank has indicated up to USD 1 billion in support over coming years. Under the IMF programme, the fourth review reached staff-level agreement in late April; with Board consideration by end-June, we expect the next tranche. It is not only about funds; we are advancing good governance reforms. For example, tenders over Rs. 1 billion now have disclosure mechanisms—Phase 1 covering 10 key institutions is live, to be expanded to all.

¶ 05 On US tariffs, proactive engagement—Presidential correspondence, virtual and physical meetings—has led to the Cabinet approving the next negotiation round. Our goal is to sustain competitive advantage for exporters during the 90-day consultation window and secure favourable outcomes.