The Hon. (Dr.) Upali Pannilage — Minister of Rural Development, Social Security and Community Empowerment

¶ 01 [4.26 p.m.]

¶ 02 Hon. Presiding Member, thank you for the opportunity to speak on the Finance, Planning and Economic Development Ministry’s expenditure heads. This Ministry is under the direct purview of the Hon. President and receives Rs. 714.1 billion in 2025—about 16 percent of total expenditure. We should not confine our discussion to its departmental remit because it also frames and oversees the entire Budget.

¶ 03 Over more than a month of debate, several critiques emerged. A principal issue from the Opposition and civil society was the increase in public sector salaries. Let me be clear: in our “Prosperous Country – Beautiful Life” policy, we did not promise across-the-board public sector pay hikes. We did, however, state two things: first, to accord due dignity to labour—skilled and unskilled alike—as a vital factor of production; second, to raise teachers’ salaries into the top ten salary bands. In line with these principles, we have undertaken a structural reform of the pay system and provided a significant increase, allocating an additional Rs. 110 billion in 2025. Initial criticisms from some higher social strata have eased after dialogue and understanding.

¶ 04 The second critique was about our economic model. This Budget advances a coherent model. We are not here to adopt labels—capitalist, socialist, liberal or neo-liberal. People have rejected past models and those who espoused them. As Rohana Wijeweera once quipped when asked whether to follow Russia or China, neither shoe fits as-is. We draw lessons globally but will not transplant models wholesale. Considering our present economy, socio-cultural context, geography and human capital, we are introducing a Sri Lankan model—integrated with the world yet tailored to our realities. This Budget lays the foundation—structural change—for that model.

¶ 05 Another matter: the Hon. Shritharan linked the Speaker’s ruling on a Member to ethnicity. With respect, we must not cast the Speaker’s decision in ethnic terms. From day one, our Government has emphasized national harmony—Sinhala, Tamil, Muslim, Burgher, Malay—all as Sri Lankans. This ruling concerns one Member and has no link to Government policy. Please do not interpret it through an ethnic lens.

¶ 06 On the past 46 years of decline and regional disparities: nearly 44 percent of national income arises from the Western Province, while some provinces contribute around five percent. This stems from wrong economic visions, methods, corruption and fraud of previous Governments. Recognizing this, we have allocated Rs. 13,250 million specifically for district and regional development to reduce disparities—part of our system change.

¶ 07 On social protection, we have allocated Rs. 749 billion in 2025. Beyond nominal amounts, we are expanding coverage. For example, the elderly allowance of Rs. 3,000 goes to about 800,000 low-income seniors; we will increase beneficiaries to 1,000,000. For persons with disabilities and special-needs children, the monthly grant of Rs. 7,500—previously constrained by a cap with many receiving only Rs. 6,000—is inadequate when the poverty line exceeds Rs. 16,000. The Cabinet has now approved raising the cap to Rs. 16,000 for determining low-income eligibility and increasing beneficiaries from 138,000 to 310,000, while also raising the grant from Rs. 7,500 to Rs. 10,000. Thus, we are expanding both benefit levels and coverage. Thank you.