The Hon. Thilina Samarakoon

¶ 01 Madam Presiding Member, we are on the final two days of the Budget debate.

¶ 02 The Opposition says this is an old-style Budget without novelty. But budgets for the coming year are necessarily based on prior-year data and departmental allocations. We cannot present a completely novel budget detached from last year’s baseline. Recurring expenditures like salaries and ongoing capital works must be accounted for. Projects halted midway must be restarted appropriately, qualitatively, and at proper scale.

¶ 03 For example, we raised the basic salary of public servants by 64 percent without waiting for union timelines. That boosts purchasing power, demand, production, and investment opportunities. Using the prior year as a base, we have taken measures to expand the economy.

¶ 04 To achieve the growth we seek, we must increase production and the investment opportunities that underpin it. In expanding, we must focus on the MSME sector and its ecosystem. In this Budget, we have devoted attention here. By broadening investment opportunities, we intend to shift the economy to a production orientation — agriculture, livestock, manufacturing, and value-adding services.

¶ 05 Notably, Rs. 38.6 billion is allocated to develop MSMEs. For new enterprises and existing small and medium businesses, Rs. 20 billion is provided to facilitate financing. We have also made allocations to revive distressed enterprises. Beyond this, through state banks — Bank of Ceylon, People’s Bank, and Regional Development Bank — we plan to expand funding to MSMEs, growing the initial Rs. 20 billion up to Rs. 50 billion.

¶ 06 While providing funds, we are also addressing constraints that hinder operations by improving basic infrastructure. We have identified MSME pain points: limited access to finance; limited business skills and HR retention; low market share and market access; lack of MSME data; and the impact of the pandemic. Through the Industry Ministry and an advisory council, we are developing district and regional coordination mechanisms to support entrepreneurs.

¶ 07 Guarantee-related challenges also exist. We have set up the National Credit Guarantee Institution Limited to provide coverage for collateral shortfalls. The Budget reflects maximum possible support to build up ordinary entrepreneurs.

¶ 08 We have discussed mechanisms to advance national production, with plans to move the country decisively towards growth. Even Opposition Members, by their conscience, know that day by day the country is improving. If they can, let them contribute constructively so we can take the country forward with a professional Cabinet and committed public officials. We will increase production and make Sri Lanka a sound economy.

¶ 09 Thank you, Madam Presiding Member.