The Hon. D.V. Chanaka

¶ 01 Hon. Deputy Chairperson of Committees, we debate vehicle imports, taxes, certain HS codes, and the construction sector. While we welcome the reopening of imports, recall your promises: you claimed Sri Lanka was among the highest-tax countries then, yet it was not in the top 20. Upon coming to power you added a new 60% Luxury Tax to vehicle prices. You came saying Vitz cars would be cheaper, but instead increased taxes beyond previous levels. You give permission with one hand and take away with the other—eliminating some taxes while imposing a fresh 60%, making Sri Lanka now second in the world for vehicle taxation.

¶ 02 You boast of economic revival, but the Central Bank report does not reflect that. The key measure is GDP growth: from 5.3% when you took over, now it has fallen to 4.8%—a 0.5 percentage point drop, roughly a 15% reduction in growth. Agriculture growth has turned negative. The President says there is a Rs. 1 trillion reserve at the Central Bank; normally the CB maintains dollar reserves and minimal cash base money, not a rupee “reserve” of that size. The Treasury’s primary account should show a surplus if so, yet the CB report shows no such figure. Meanwhile, you justify continuous money printing, yet in the last seven months the rupee has depreciated about 3%, growth is down, agriculture down—clear macro slippage. When money is printed and T-bills/bonds are issued, you say it’s the Central Bank’s job; but when forex reserves reach USD 6.5 billion, you claim it as a government victory. Credits are yours; debts are the CB’s—this is odd. Thankfully, CB independence was established before you came, enabling some discipline.

¶ 03 You claim corruption is gone. Where? Complaints on container fraud and salt scam have seen no serious inquiry. Serious bribery allegations hang over a powerful energy-sector minister with no investigation. Another minister ignored a court order to respond for four months over a forged document. If the CIABOC is independent, why no action?

¶ 04 I reveal a graver issue: coal tenders. International procurement guidelines require six weeks from issue to closing. Your Cabinet cut it to five weeks, then the National Procurement Commission reduced it further to three weeks citing coal shortages. A first-ever international tender closed in three weeks—impossible to fairly bid. The tender was delayed by 1.5 months initially, then registration timed to suit preferred companies, Cabinet cut to five weeks, NPC to three, and in the end the same company previously accused was given six new lots at their prices; performance bonds in such tenders are typically USD 15–30 million. The procurement chair who had to sign resigned rather than sign. This is a preplanned path to hand the tender to a chosen ally.