The Hon. Ravindra Bandara

¶ 01 Hon. Deputy Chairperson, my remarks are on the Ministry of Science and Technology. In our first year, while stabilizing the economy and meeting the 2025 Budget targets, our foremost task now is to build a production economy. To advance SMEs and take the country forward, we must establish a manufacturing/production-oriented economy.

¶ 02 On research and development (R&D): historically, Sri Lanka allocated very little—around 0.12% of GDP. In contrast, Japan spent 3.6%, South Korea 4.6%, Malaysia 1%, China 3% in comparable periods. We clearly neglected scientific research.

¶ 03 India has abundant natural resources and scientists; South Korea has fewer natural resources but a strong human resource base in science and technology. Sri Lanka has some resources—minerals, pearls, gems, surrounding seas, and key agricultural crops like tea, coconut, rubber and spices. To advance these, we must invest in research and technology. The Government recognizes this to build a production economy.

¶ 04 How much is allocated? Across ministries, R&D totals Rs. 21 billion this Budget; Rs. 6 billion to the Science and Technology Ministry, with sectoral R&D lines across agriculture and others making up the balance.

¶ 05 Take potatoes: production costs are high; 40% of costs are for seed, mostly imported—also costing foreign exchange. Domestic seed production is underdeveloped; fertilizers and agri inputs are not tailored to our soils and climate. Annual consumption is around 225,000 metric tons; domestic production is about 70,000–80,000 MT, forcing imports. To reduce imports, we must raise production and lower costs: Rs. 0.5 billion for accelerated seed farm development; Rs. 0.4 billion to apply new tech and mitigate climate impacts; Rs. 1.2 billion for a national seed purchasing programme.

¶ 06 In energy, we are opening for investment, including green hydrogen—vital for the future; green ammonia as a by-product can be used for fertilizers. Rooftop solar needs proper control: local engineers have introduced inverter controllers. Phase 1 plans for 2,000 units (over 100 kW) enabling control of about 650 MW from a centralized control room; Phase 2 plans 42,000 units (>5 kW) targeting 1,500 MW. Currently, we have around 2,100–2,200 MW from solar; this will systematize and smarten the grid.

¶ 07 Research is happening, but commercialization lags. Rs. 1,200 million is allocated for commercialization. The President also announced a State Research and Development Policy Framework to identify priorities and drive research to market, monitored via a centralized structure: establishing the National Institute for Research, Development and Commercialization, and the National Council for Research and Development—Bills to come in 2026. This will align priorities and oversight.

¶ 08 On data centres: while Rs. 500 million is allocated for enabling infrastructure, the Budget clearly signals attracting foreign investors. This year we have US$827 million in FDI already; by year-end, about US$1 billion. Next phases include green hydrogen, transport electrification, etc., to attract investment.

¶ 09 Above all is human capital. If we properly structure institutions and fund universities and research institutes, evaluate outcomes, and commercialize according to national priorities—especially in energy (green hydrogen, solar) and others—we will advance. Oppositional claims that we do not support solar are false; 702 MW was added this year, now moving to smarter grid management through scientific research, saving foreign exchange and using our human resources.

¶ 10 We have stabilized the economy and charted paths to meet targets beyond 2028. Building a production economy, supporting SMEs and entrepreneurs, and creating the right facilities will drive a renaissance in science and technology. Thank you.