The Hon. Wijesiri Basnayake

¶ 01 Hon. Deputy Chairperson of Committees, we are debating Amendments to Act No. 11 of 2021. The Leader of the Opposition ignored today’s subject. On investment attraction, Sri Lanka uses four entry routes:

¶ 02 1) BOI-facilitated FDI. Delays and opaque influences existed; we are introducing a single-window mechanism.

¶ 03 2) Public-Private Partnerships. A Bill is forthcoming to enable PPPs, with Government providing infrastructure and strategic locations.

¶ 04 3) Joint ventures for specific, time-bound undertakings.

¶ 05 4) The Port City framework—aimed to be a globally competitive Special Economic Zone and financial hub. Current provisions are insufficient or weak; hence, this reform.

¶ 06 We seek incentives aligned with global best practices, IMF alignment where necessary, and operations with transparency, accountability, and tax fairness—ending arbitrary preferential treatment and setting clear standards. Offshore banking will be designed with the Central Bank.

¶ 07 Key fiscal changes: - Employment income tax: zone employees were exempt; the Amendment ends this. Existing registrants get a three-year transition from enactment; new registrants’ employees are not exempt. - Businesses of Strategic Importance (BSI): clear criteria set; MOF will conduct technical analyses; incentives will be time-bound, linked to minimum investment and employment generation. - Offshore banking: licensing and supervision under the Central Bank, including capital adequacy, liquidity, and risk management; regulation of licensees and fit-and-proper persons.

¶ 08 On growth: despite predictions of collapse if the NPP took office, 2025 quarterly growth came in at 4.8 per cent, 4.9 per cent, and above 5 per cent in Q3—exceeding earlier 3 per cent projections. On appointments, competent candidates proposed for Auditor General have been unfairly blocked. Similar noise was made over the CIABOC DG, yet the Commission functions well now. Do not obstruct; let us build a prosperous country together.

¶ 09 Thank you.

¶ 10 Sitting suspended till 1.00 p.m. and then resumed.