The Hon. Ruwan Wijeweera

¶ 01 Hon. Deputy Speaker, I am pleased to join this debate on amendments to the Colombo Port City Economic Commission Act, No. 11 of 2021. Economic development in any country rests on macroeconomic stability. When stability is established, Foreign Direct Investment (FDI) plays a vital role. Port City is a key space to attract FDI.

¶ 02 This Bill addresses, inter alia, Section 35(1) and related notes on employment of residents and non-residents, including their income tax conditions and exemptions. Clause 5 deals with engagement in banking business, and Clause 60 introduces international banking standards, risk management, supervisory review, prudential guidelines, and fit-and-proper standards, as well as licensing suspension or cancellation for offshore banking operations.

¶ 03 Clause 13—amending Section 52 of the principal enactment—is particularly important: Ex-post Monitoring of Businesses of Strategic Importance (BSI), including the scope and duration of tax incentives, the state of the enterprises, their scale, and employment numbers, so incentives are rational and performance-linked.

¶ 04 We have identified Port City as a major economic space to boost growth. Four projects worth USD 1.4 billion have been approved and started; projects nearing completion amount to USD 1.2 billion, with more in the pipeline.

¶ 05 This morning the Leader of the Opposition questioned whether the Government has achieved macroeconomic stability. I quote the IMF Report from Washington, D.C., dated 19 December 2025: “The cyclone struck as Sri Lanka is emerging from a deep economic crisis and the IMF-supported reform programme under the EFF is bearing fruit.” It further notes: “Sustained adherence to the reform agenda has underpinned a robust economic recovery,… substantial revenue-based fiscal consolidation… price stability….” Fiscal consolidation is crucial; prior governments failed to reach expected levels, but the IMF recognizes we have achieved macro stability.

¶ 06 On the cyclone response, the IMF states: “The Government responded swiftly with a package of relief measures, supported by strong fiscal overperformance in 2025.” Because of overperformance, Treasury had a cash buffer to assist affected people.

¶ 07 Key 2025 indicators: growth around 5%; inflation around 2%; capital expenditure above 65% by October; FDI over USD 1 billion; record worker remittances of USD 7.8 billion (previous high USD 7.24 billion in 2016); and a historic high in tourist arrivals. Across most indicators, outcomes exceeded projections—the IMF projected 3.5% growth, we achieved about 5%. The World Bank and others acknowledge this as well. Some in the Opposition expected depreciation and a renewed crisis; instead, the data show achievement. They should acknowledge it.

¶ 08 Education reforms are also needed, as our system lags by decades. The process initiated in 2019 should continue to produce capable children for the 21st century. Thank you, Hon. Deputy Speaker.