The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Speaker, this is an important debate. After nine months, the new Government is showing how we are moving from stability to growth. The Hon. President asked the Opposition to identify any indicator moving in the wrong direction. For 40 years, many indicators moved away from targets: 30 per cent of our people fell below poverty; the trade gap widened to US$ 8 billion annually due to failed industrial policies; the fiscal deficit kept rising, leading to debt and crisis; our interest cost relative to revenue was among the world’s highest; tax-to-GDP was 8.5 per cent in 2019, with overreliance on indirect taxes. Those responsible are now lecturing us.

¶ 02 Before the election, the Opposition claimed the NPP lacked skill and would scare away investors; that we would crash in months; that we could not manage the IMF; that we would nationalize private assets. All that proved false.

¶ 03 For growth, Dr. Kishore Mahbubani emphasizes rule of law, meritocracy and discipline. We are practicing that. Have they ever practiced meritocracy? Look at appointments now: Hon. (Dr.) Anil Jayantha as Deputy Finance Minister; (Dr.) Harshana Suriyapperuma as Secretary to Finance; credit given to the Central Bank Governor and the prior team—merit-based responsibility like never before.

¶ 04 Verité Research showed Sri Lanka is outperforming IMF Debt Sustainability Analysis assumptions: revenue up 18 per cent over last year; primary balance better than expected; debt-to-GDP declining; interest cost is the only lagging item. On exchange rate stability, inflation, interest rates, current account and reserves, we are beating targets. Tell us one indicator that shows derailment.

¶ 05 Social indicators—poverty, employment, real wages—cannot improve in a single year; decades of failures need time to unwind. They will improve as gains trickle down.

¶ 06 Economist Ms. Subhashini Abeysinghe highlighted two drivers for small nations: (1) good governance and “hygiene”—we are digitizing, improving CPI rank, Ease of Doing Business, Innovation Index, and digital penetration to create a level playing field; and (2) access to markets via bilateral and multilateral agreements. The Opposition failed to balance FTAs with domestic competitiveness. We are upgrading industry efficiency while opening to regional and global trade.

¶ 07 IMF constraints on expenditure require us to prioritize: support industry and marginalized communities while staying on the growth path. Government expenditure is nearly Rs. 4 trillion with Rs. 1.3 trillion capital—the largest recent investment—driving faster growth. Exports are up 8.7 per cent with market diversification—Europe, Africa, East Asia up over 20 per cent. Manufacturing is growing above 9 per cent; private credit is up 16 per cent. Long- and short-term bond yields are converging, signaling confidence and stability under a two-thirds majority.

¶ 08 On FDI, inquiries exceed US$ 4.6 billion; US$ 536 million already secured—about 100 per cent growth over last year. The Ministry of Industries has approved 78 new factories to start this year and early next.

¶ 09 In conclusion, Sri Lanka is moving from stability to growth. We ask the Opposition to join this journey—reforming laws, changing political culture, and pursuing those who wasted public funds. Do not drag us back with false statements that scare investors. We are acting honestly and ask for your support to drive growth on the right trajectory.