The Hon. Aravinda Senarath

¶ 01 Hon. Presiding Member, we are debating the expenditure heads of the Ministry of Finance, Planning and Economic Development in our Government’s first Budget for 2025. This nation has faced a severe, decades-long economic crisis and collapse. We waged a political struggle in the open to rebuild. Now, in Government, we are presenting plans and turning them into ground reality. Through the inaugural Budget, both as a Government and with the state machinery and the people, we aim to drive growth to 6 percent by uniting citizens behind a production-led agenda.

¶ 02 Some Members, including those who were Ministers in the previous administration, now ask us whether we will run an import-dependent economy. For nearly four decades, production was neglected; we became dependent on imports as successive rulers chose to source everything from abroad rather than build domestic capacity. They now ask us our economic policy. Our policy is clearly set out in our manifesto and this Budget. The Hon. President has presented all necessary measures to steer the country to a production economy. We are happy to tell our people—especially the youth—that after four decades, this Budget proposes to restore a production economy.

¶ 03 A Member from the former ruling side calculated that with our path it would take 27 years to become like Singapore and over 50 to be like China. Who says this? Those who ruled for decades—fathers, sons managing the state—now ask when development will arrive. We remind them: Singapore took around 30 years to reach its current level; China took nearly six decades of planning and sacrifice; Vietnam took around 40–45 years, achieving over 9 percent growth, through major sacrifices. We say we will not take that long, but those countries followed plans and discipline. Sri Lanka, in 76 years since Independence, did not. Hence we became a bankrupt nation. This Budget sets targets and a timeframe to rapidly achieve growth and become a developed Asian nation. To those who ask about investment in six months, we say: examine what investments came since 1977. Despite promises under the open economy, in 48 years successive rulers failed to attract sufficient investment. We are planning to bring the capital required to achieve our growth targets over the next five years.

¶ 04 This country relied excessively on taxes on basic goods. Those who taxed sugar, rice and flour now press us on tax cuts in six months. We are not hasty. We will rebuild step by step. That is why education receives the highest-ever allocation: Rs. 619 billion. We consider education a critical investment for development. Likewise, to build a healthy and productive population, health receives a record allocation of Rs. 604 billion.

¶ 05 Under the Finance Ministry lies the Department of Excise. Many Members spoke about it. The Excise Ordinance No. 8 of 1912 was established and implemented from 1913 to curb illicit liquor by licensing legal sale. However, more than 90 percent of licenses historically have been given on political patronage, often to party organizers near elections. Between 01.01.2022 and 30.04.2024, 431 licenses were issued—clearly to create income opportunities for loyalists on the eve of elections under the previous Government. There are currently 3,884 licensed liquor outlets. Expected revenue for 2024 was Rs. 320 billion, but only Rs. 278 billion was realized. For 2025, the target is Rs. 242 billion. Excise is deeply connected to society. While some Members complained of high liquor prices, we must recognize the structured approach and the current social demand patterns—whether we like it or not, consumption persists.

¶ 06 Hon. Presiding Member: Hon. Member, your time is up.

¶ 07 Hon. Aravinda Senarath: Please grant me a little more time.

¶ 08 Society is asking for legal, lower-priced liquor through Government outlets. This is a social discussion. Regardless of personal views on alcohol, this reality affects families; when someone earning Rs. 3,000 a day spends much on alcohol, it creates household crises. As a Government, we must consider appropriate proposals.

¶ 09 The Excise Department is important, but past mistakes exist. Licenses were issued without assessing surrounding environments; in my area, even local councillors of the then-ruling party were granted licenses. Residents’ needs were ignored, causing many issues.

¶ 10 This Budget allocates significant funds to attract investors, manufacturers and SMEs. We are pleased that our first Budget proposes a production economy to revive growth. Within six months, through prudent economic management, we have reduced food prices. Market prices fluctuate with demand and supply, but we can say with satisfaction: brown sugar fell from Rs. 385 to Rs. 265 per kg; big onions from Rs. 460 to Rs. 160–180; potatoes from Rs. 400+ to Rs. 160–170 per kg. These changes have benefited people. With continued management and this Budget’s measures, we can secure many victories and drive social and national transformation. This is a people-centric Budget. Villages await ground-level benefits, and we will persevere. Thank you.