The Hon. Champika Hettiarachchi

¶ 01 Hon. Presiding Member, we are debating the Second Reading of the Bill to amend the Colombo Port City Economic Commission Act, No. 11 of 2021. Within about a year, the National People’s Power Government has significantly strengthened the economy. Inflation that once surged daily has been brought down to a controlled level. Public financial management indicators show improved performance. In the last Budget debate, it was noted that state revenue exceeded expectations: Inland Revenue generated an additional Rs. 41 billion; Customs, Rs. 288 billion more; and the Excise Department, Rs. 5 billion more. Even the Opposition did not expect such figures.

¶ 02 Exports reached USD 17.2 billion; tourism earned USD 3 billion; remittances rose to USD 7.8 billion. FDI exceeded USD 1 billion, and we are strengthening the single-window concept via the BOI, while preparing PPP and joint-venture frameworks to further bolster the economy. Having inherited a defaulted economy, rating agencies like Fitch have since upgraded us.

¶ 03 With improved debt restructuring and investor confidence, these amendments refine Port City’s regime. Investors weigh political stability as well as economics. Despite Opposition hopes, this Government will not fall; these statistics prove stability.

¶ 04 Port City had remained idle without investments. To integrate it into our growth strategy, we rationalize incentives while ensuring oversight. We categorize Primary and Secondary Businesses of Strategic Importance (BSI) with thresholds: - Type A: 300 employees and USD 100 million investment – 10-year corporate income tax holiday; 5-year project implementation period with exemptions from Cess, PAL, etc. - Type B: 300 employees and USD 500 million to USD 1 billion – 12-year holiday; 6-year implementation. - Type C: 300 employees and over USD 1 billion – 15-year holiday; 8-year implementation. - For firms with 100 employees and at least USD 25 million – 8-year holiday; 4-year implementation.

¶ 05 Previously, blanket 25-year holidays existed; now we have calibrated categories. The Port City’s banking regime will be under Central Bank supervision for offshore banking licenses, subject to Central Bank rules. If we want a financial hub, we need a strong, regulated banking system. Governance must be strengthened by law, and wrongdoing prevented.

¶ 06 In the past year, about 26 regulations were adopted to curb irregularities and corruption. As we head toward 2028—an important year—we are reaching stability. Yesterday, an Opposition MP mocked with odd claims; we laugh not at the Sangha but at such absurd statements. Attempts to destabilize the country must be resisted. Thank you.