The Hon. Thilina Samarakoon

¶ 01 Mr. Speaker, today we intend to discuss two economy-related matters. We were similarly engaged over the last two days.

¶ 02 We are debating the Regulations published in Gazette Extraordinary No. 2428/07 of 19 March 2025 under the Imports and Exports (Control) Act, No. 1 of 1969.

¶ 03 Under section 20, to complete the legal requirements, these are presented to Parliament today. They were discussed by the Committee on Public Finance on 20.05.2025. The focus was the issues faced in importing vehicles from Japan and the amendments required to make those imports more orderly and efficient.

¶ 04 Previously, several entities issued valuation and inspection reports for Japanese vehicle imports: the Japan Vehicle Inspection organizations, including Japan Export Vehicle Inspection Centre Company Limited and USS Company Limited. In addition, Bureau Veritas, which operates domestically and in other exporting countries, provided valuation and other reports. Through Gazette 2428/07, we have now legally recognized Bureau Veritas also for inspection/assessment reports for vehicles imported from Japan.

¶ 05 We also addressed prior difficulties: when there were deficiencies in documents, we had to courier them back to Japan for verification, causing delays. To streamline this, instead of couriering, we have now established connectivity with the relevant entities I mentioned so that clarifications and confirmations can be obtained promptly. The necessary legal enablers are now in place.

¶ 06 Further, for bank-to-bank documentary credit matters and customer verification of Japanese exporters/suppliers, instead of the old process, we can now access the relevant bank’s online systems from Sri Lanka to verify customers via their verification systems.

¶ 07 Thus, we are modernizing vehicle import processes through technology, allowing importers to resolve issues quickly. I will not go into every detail; that is the gist.

¶ 08 Second, I will address the matters under the Public Finance Management Act (PFMA) concerning advance/deposit accounts.

¶ 09 Under the Third Schedule of the PFMA, No. 34 of 2023, limits were set for 2024 for General Deposit Accounts (GDA), Commercial and Production Advance Accounts, Special Advance Accounts and “B” Advance Accounts. Under section 8 of the PFMA, the Minister of Finance is empowered to revise these limits during the year to meet emergent needs, subject to presenting them to Parliament before 31 May of the following year. The revisions we debate today are valid only for 2024.

¶ 10 Key revisions are:

¶ 11 - Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Advance Account increased from Rs. 50 million to Rs. 150 million. - Educational Publications Department (for printing, publicity, sales of school books) Advance Account reduced from Rs. 2,000 million to Rs. 850 million. - Sri Lanka Navy (Explosives Stores) GDA reduced from Rs. 2,700 million to Rs. 2,650 million. - Department of Prisons—Industrial and Agricultural Activities Advance Account increased from Rs. 140 million to Rs. 160 million. - Sri Lanka Customs—Seized and Forfeited Goods Advance Account increased from Rs. 8 million to Rs. 16 million. - Department of State Accounts—Various Advance Account reduced from Rs. 15 million to Rs. 4 million. - Sri Lanka Railways—Stores Advance Account increased from Rs. 2,500 million to Rs. 3,000 million. - Department of Government Factories—Stores Advance Account reduced from Rs. 200 million to Rs. 50 million; Work Done Advance Account reduced from Rs. 400 million to Rs. 350 million. - Revisions were also made to Government Officers’ Advance Accounts, including allowances, pay advances and disaster loans.

¶ 12 These vehicle-import amendments are aligned with our aims: a planned, streamlined process. Instead of document returns via courier and long waits, we now have digital/online pathways for importers to obtain information instantly, expanding opportunities for quicker Japanese vehicle imports, supporting international trade and increasing tax revenue from vehicle imports.

¶ 13 Our Government has consistently emphasized digitalization; these measures reflect that, enabling online processing and real-time resolution for importers—part of the system change we promised.

¶ 14 Regarding advance accounts, the changes have objectives. As a Government committed to combating bribery and corruption, increasing CIABOC’s advance limit from Rs. 50 million to Rs. 150 million reflects the need to resource high-value sting and investigative operations; past cases showed Rs. 50 million was insufficient.

¶ 15 Efficient public fund management led to the reduction in the Educational Publications Department’s requirement from Rs. 2,000 million to Rs. 850 million due to technology, lower international paper prices and a stronger rupee, optimizing spending without compromising schoolbook supply.

¶ 16 The Navy Explosives Stores reduction reflects reduced private weapons requirements among office holders; we are building a new political culture with fewer personal arms uses by public officials, thereby reducing related provisioning.

¶ 17 Prisons’ Industrial and Agricultural Activities increase by Rs. 20 million responds to rising inmate numbers and maintenance needs, while longer-term measures will aim to reduce inmate populations.

¶ 18 The increase for Sri Lanka Railways’ Stores Advance to Rs. 3,000 million supports procurement of spares to improve daily operations and deliver a more reliable rail service.

¶ 19 Revisions to Government Officers’ advance accounts enhance staff welfare, including disaster-related loans.

¶ 20 I urge the Opposition and the public to engage on data and facts. Let us debate constructively how we turn the economy around and deliver the system change through concrete measures such as these. I commend the Regulations under Gazette 2428/07 and the PFMA advance account limit revisions for approval.

¶ 21 Thank you, Mr. Speaker.