The Hon. T. B. Sarath - Deputy Minister of Housing

¶ 01 Hon. Presiding Member, today we debate important amendments to two laws, especially affecting vehicle imports and the construction industry’s development. Under section 58 read with section 52(2) of the Construction Industry Development Act, No. 33 of 2014, the Order provides as follows: the contractor registration fee remains Rs. 20,000; the renewal fee, previously Rs. 20,000, is reduced to Rs. 5,000—a long-standing request from contractors.

¶ 02 Also, in contractor grading, the financial limits—e.g., the CS2 category’s ceiling is increased from Rs. 3,000 million to Rs. 6,000 million—reflecting current industry growth. Over the last year, both industry and construction have revived significantly from the collapse we inherited due to national bankruptcy. Construction sites were halted; hundreds of thousands lost jobs. Now the sector is growing at around 13 per cent. These changes help sustain that momentum.

¶ 03 Further, categories such as C8 and C7 had limits at Rs. 2 million and Rs. 4 million; these are raised to Rs. 6 million. I examined who mainly register in these grades: many are former local authority members and chairmen from the previous government, and still today many contractors in those grades are activists of the Sri Lanka Podujana Peramuna. They loudly claim injustice, but they themselves operate in these tiers. We are ensuring fairness for the very sectors where they work. I am placing a detailed document in the Library.

¶ 04 The Opposition did not address the substance of these amendments, nor their benefits. Instead, they raised unrelated issues. On paddy procurement, some claimed failure. I am pleased to say we expect the highest Yala paddy harvest—over 2.25 million metric tons—due to agricultural development. Earlier governments had no robust procurement mechanism; the Paddy Marketing Board and cooperatives had been dismantled, and state stores sold to private firms. Even so, today the PMB is purchasing at 142 locations at around Rs. 120 per kg, while production costs have been reduced to under Rs. 90 per kg.

¶ 05 When we assumed office, fertilizer subsidies were Rs. 10,000 per hectare; now increased to Rs. 25,000. Fuel prices have fallen; costs in agriculture have been reduced, including for machinery. The Opposition says we ignore farmers despite having farmer leaders in Parliament. Our formula set a fair price: production cost divided by three plus one part added back. If cost is Rs. 90, one-third is Rs. 30; Rs. 90 + 30 = Rs. 120 per kg. While we accept that may not fully meet social living needs, it is fair against production cost—something prior rulers failed to ensure. When the PMB purchases about 45 per cent of the crop—some 25,327 metric tons at this stage—it can influence market prices, and we have stabilized the open-market price of dried paddy at Rs. 120 per kg.

¶ 06 The Opposition alleges tax burdens through increasing indirect (turnover) taxes. Tell us which new turnover taxes we imposed. Previously, indirect taxes paid by 22 million citizens accrued to benefit large corporations, which in turn engaged in massive tax evasion. When we took office, ten major businessmen had evaded over Rs. 250 billion. Now we are collecting from big companies; not perfectly, but far better than before. That is why the Opposition is agitated—because their patrons must pay. Funds collected go to public projects: irrigation canals, tanks, highways, hospitals, schools, and housing—not into corruption. From 2015–2020, only about 4,000 houses were completed; by the end of this year, we will complete over 10,000.

¶ 07 They also say vehicle prices are high. In 2018–2019, a US dollar was Rs. 120–130. When we took office, it was around Rs. 330; we have stabilized it around Rs. 300. Given the tripled exchange rate compared to 2018, vehicle prices inevitably rose post-crisis. We aim to provide vehicles to the public at the lowest possible prices, and as the economy stabilizes, the benefits will reach even the poorest, including in Jaffna.