The Hon. Thilanka U. Gamage

¶ 01 Madam Presiding Member, I am pleased to speak on the Head of Expenditure of the Ministry of Finance, Economic Stabilization and National Policies at this Committee Stage debate.

¶ 02 After a long period, the country fell into this economic state because erroneous economic methods were followed. Anyone with basic understanding of economics knows that the absence of a proper programme in the past and the actions taken led to today’s suffering. We know vast borrowings were undertaken without evaluation, creating a mountain of debt and burdening future generations. After taking office, we have had to address that problem.

¶ 03 Wrongheaded “reforms” made the innocent poor pay the price. Their future is now entrusted to this Government. Therefore, we have initiated a genuine economic roadmap and model through this Budget to lift people out of hardship.

¶ 04 Sri Lanka was ranked 11th among 195 countries on the poverty index and number one in Asia. We were not handed a prosperous nation; we were handed a nation plunged to the depths of crisis. People struggled to eat three meals, educate children, get medicine, or transport themselves on proper roads.

¶ 05 With clear understanding, we have set Sri Lanka on a real economic path. This is the direction embodied in this Budget — aligning to the required track.

¶ 06 In the past, taxation was not based on fairness. We are managing taxes on the principle of equity. Capital expenditure had been too low due to lack of space. Development was also confined to certain regions. In contrast, this Budget spreads development equitably, binds the rural poor to the economy, and channels funds to villages — roads, factories, jobs, and incomes. Spending multiplies, production expands, growth accelerates, and benefits are shared fairly.

¶ 07 During the crisis, the economy contracted — as it must. Now as the crisis eases, the economy must expand. This Budget creates room for expansion. Money must flow to people so they spend, production responds, growth accelerates, and benefits spread.

¶ 08 We will not borrow to burden future generations. Any borrowing will be invested to bind people — especially the rural poor — into the economy and drive growth. We lacked proper investment for years, and what came was often misused. Now, after President Anura Kumara Dissanayake’s visit to China, we have attracted a US$3.7 billion investment for an oil refinery — a major productive asset. We are allocating to restart rural industries: shuttered paper and sugar factories, and to utilise Eppawala phosphate. We are allocating unprecedented sums for education (Rs. 619 billion) and health (Rs. 604 billion), lightening people’s burdens.

¶ 09 In 2015 growth was 5 percent; by the time that Government left, it had fallen to around 2.2 percent. They now lecture us, but could not deliver then. We have brought a real programme.

¶ 10 Let me conclude with a quote from the President’s Budget Speech (pp. 49-50): “We are confident our people will never again be divided against each other, and that they will not be deceived by those who seek to pit them against one another for political or personal gain.”

¶ 11 With this Budget, we will build a “Prosperous Country - Beautiful Life,” charting the path to our future.

¶ 12 Thank you, Madam Presiding Member.