The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Presiding Member, in this Budget debate we focus on revenue, expenditure and management. The Budget sets out how we take the country forward and align institutions accordingly—not toward bankruptcy, but correcting past paths that led there.

¶ 02 Regarding allegations about past bond matters and “footnotes,” investigations revealed communications among perpetrators during proceedings and payments made from the Mendis account to several individuals; if such documents are tabled, they should be tabled in full, not selectively.

¶ 03 Turning to the Budget numbers: primary expenditure is over Rs. 4,200 billion, with Recurrent Expenditure at Rs. 2,970 billion, Capital Expenditure at Rs. 1,315 billion, and public debt service at Rs. 4,550 billion (interest Rs. 2,950 billion; amortization Rs. 1,600 billion), totaling Rs. 8,835 billion for 2025. Revenue is projected at Rs. 5,042 billion. The remaining financing need of about Rs. 3,800 billion will be met by Rs. 3,100 billion domestic and Rs. 700 billion external financing (about Rs. 4,000 billion total gross borrowing).

¶ 04 Implementation: under the Finance Ministry, 23 departments drive Budget execution—National Planning, Fiscal Policy, External Resources, National Budget, Public Enterprises, Management Services, Development Finance, Trade and Investment Policies, etc. We will explain how targets will be met.

¶ 05 On debt management: a Public Debt Management Office (PDMO) has been established with a Public Debt Coordinating Committee and a Debt and Cash Management Committee. Domestic borrowing operations and guarantee issuance are underway. External borrowing operations conducted by the Central Bank will transition to the PDMO. Reforms ensure transparency and avoid the prior reliance on high-cost commercial borrowing that contributed to crisis.

¶ 06 This evening we will debate the Inland Revenue (Amendment) Bill—covering withholding tax, export services tax, vehicle taxes and SVAT. On SVAT: we will not remove it haphazardly. After implementing the required digital systems to ensure no cash flow hardship for exporters/producers, and no unfairness, we will transition within a defined timeline agreed with Inland Revenue. On withholding tax: we are preparing a digital mechanism to operationalize declaration-based non-withholding and efficient credit/refund without burdening citizens. Further details will be presented this evening.