The Hon. Wijesiri Basnayake

¶ 01 Hon. Speaker, I move the Adjournment Motion on “The Current Economic Status of the Country” on behalf of the Government.

¶ 02 Through prudent economic strategies, the present Government has brought the country towards stability. But mere stabilization will not deliver rapid growth. The people entrusted the responsibility of restoring and transforming a fractured country—socially, economically and politically—to the National People’s Power government led by the Hon. President through three consecutive elections.

¶ 03 The Government has not only steered out of crisis but also addressed global shocks. Notably, the severe risk to our export sector from the US reciprocal tariffs has been managed through diplomatic and strategic engagement.

¶ 04 We aim to improve macro-stability, secure economic gains, drive progressive reforms and deliver dividends to the people. All who love the country must contribute across party lines. The House, with its financial powers, should support these efforts.

¶ 05 Sri Lanka faced the worst economic crisis since Independence due to long-term structural weaknesses, policy errors, global shocks and political instability. Credit ratings were downgraded, external financing access constricted, GDP contracted by 7.3%, inflation surged to around 70%, reserves fell to minimum levels, and debt service became unsustainable.

¶ 06 Now, stability is being restored. In Q1 2025, GDP grew by 4.8%, with industry up 9.7% and services up 2.8%. The World Bank projects 3.5% growth in 2025 and 3.1% in 2026; ADB projects 3.9% in 2025 and 3.4% in 2026. Growth could have exceeded 5% but for adverse weather that dampened agriculture. Bloomberg notes the economy could normalize to 2018 levels by 2026. Private credit is expanding (~16%), credit card usage rising, and the stock market rally reflects restored investor confidence.

¶ 07 Allegations claimed that giving the mandate to us would crash the market; instead, confidence has strengthened. On US reciprocal tariffs first set at 44% and later reduced to 30% and to 20%, this was achieved through diplomatic engagement. FDI approvals in the first six months have risen by 101%, BOI approved 57 projects, and export markets are being diversified to Africa, the UK, India and into global value chains, with notable growth in EU and UK segments. The current account has shown sustained monthly surpluses with a 30.2% increase in balances. Tourism is rebounding strongly.

¶ 08 We request the Opposition’s support to build a strong and prosperous Asian nation.