The Hon. (Dr.) V.S. Radhakrishnan

¶ 01 Hon. Presiding Member,

¶ 02 Thank you for the opportunity to speak in today’s Committee Stage Debate on the Ministry of Finance, Planning and Economic Development under the Hon. President.

¶ 03 This year, approximately Rs. 714.2 billion has been allocated to this Ministry which oversees 23 institutions—key institutions that collect revenue from the public and contribute to national income. Hence, this is a crucial Ministry. It receives 16.9 percent of total Budget allocations. All institutions under it must function properly, because sound fiscal policy and financial management underpin economic growth, prosperity and development. Our economic decline stemmed from fiscal mismanagement, which also reduced production and pushed the country towards bankruptcy. Therefore, the Ministry’s operations must be sound.

¶ 04 When determining economic growth in a country, we must manage revenue and expenditure carefully, plan correctly, frame projects accordingly, and ensure monitoring and evaluation. We must not waste public funds or distribute money without accountability. In the past, public funds were wasted—for example, in the Hambantota area—contributing to the crisis.

¶ 05 We stress that regardless of changes in Presidents or Prime Ministers, core policies should not lurch unpredictably. For instance, when Gotabaya Rajapaksa came to power, he banned chemical fertilizer, causing severe economic damage. Today, the Hon. Anura Kumara Dissanayaka speaks about a corruption-free Government. That is welcome. Policies can differ—just as in the US, Joe Biden funded Ukraine’s war while Donald Trump sought to halt it—but a Government must stay consistent with its chosen policy. We will support 100 percent any effort to eradicate corruption.

¶ 06 A Budget should not simply raise prices and burden people. It must create a people-friendly economy—reduce prices of essentials and raise salaries whilst bringing down inflation. Both must move together for people to be happy. It is not enough for 225 in Parliament or only the wealthy to be content; the poor and ordinary must also be well. Allocations and measures should reflect that.

¶ 07 Consider India: the richest and the poorest coexist, reflecting stark inequality that we should avoid. Many low-income people live here; the Ministry must prioritize their welfare. Like a household of five children who all deserve equal care, regions must be treated equitably. The Western Province enjoys higher incomes and facilities, with many industries, but what of Uva, which you represent? Incomes there are lower and industries scarce. We cannot treat provinces differently; we must develop lagging regions, allocate funds without bias, and push regional development.

¶ 08 We must also ensure smooth coordination among the Inland Revenue Department, Import and Export Control Department, Sri Lanka Customs and the Excise Department. These are often cited as corruption-prone. If we eliminate corruption in these three, national revenue will rise. Since the Government’s goal is a corruption-free state, we expect decisive action.

¶ 09 Another point: of 225 MPs, 159 are in Government and the rest in Opposition. Even Opposition MPs want to deliver for their voters. We expect additional funds under Budget Head 19(8) to be allocated to them as well. In plantation areas, we lack even small grants for temples despite Head 19(1) allocations being insufficient. Under your announced programs, please support roads in estates, child-care centres and school development. The current multipurpose Budget head funds are inadequate; please increase them and also provide more to less-resourced people.

¶ 10 There is a saying: “Learn a trade; you will have no worry.” If people engage in cottage industries, it will help the community. In the hill country we have space, resources and many closed factories. Establish more industrial estates in the hill country, not just in Colombo or Kandy, so youths can work where they live. The Hon. President has also said children from Hatton and Talawakele should not have to come to Colombo to do domestic work; they should work locally. To realize that, increase industrial estates there.

¶ 11 Spiritual life is essential for a nation. Buddhists have their doctrines, as do Muslims, Christians and Hindus. People need facilities to practice their faiths. Many temples have not been able to conduct Kumbabishekam; that is regrettable. A country prospers when spiritual strength exists. Please ensure facilities for religious activities in the hill country. You, Hon. Presiding Member, are also from the hills; I request you to help estate temples where possible.

¶ 12 On taxation, it is said the 5 percent withholding tax on fixed deposits will be raised to 10 percent and effective tax to 36 percent. If most of one’s savings go in tax, people will turn to gold rather than bank deposits. Without deposits, banks lose revenue and circulation. The Government should review this to avoid unintended consequences.

¶ 13 In 1971 and 1989, JVP insurrections and the LTTE conflict cost billions. If there is no current threat, why allocate so much to Defence? If there are no issues, Defence need not receive excessive funds. Yet, killings and robberies continue; despite all crises, hill country people consistently contributed to national income—even during COVID, during JVP/ LTTE upheavals—by plucking tea. Still their standard of living is poor. The Government must allocate more to uplift their lives, consistent with your talk of raising living standards. We request the Hon. President to act so all citizens live equally without discrimination. We will cooperate. Thank you.