The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Speaker, today we are discussing the provision of facilities to vehicle import inspection agencies. But more than vehicle imports, salt imports have become the main topic now.

¶ 02 For three days we have spoken about salt in this Parliament. To my recollection, this is the longest continuous time we have discussed salt here. I even saw on Facebook: “Be like salt — add flavour when present, be desired when absent.” That is how it has become. In reality, certain elements of the Opposition and a few media outfits are blowing this out of proportion. Some media, having turned the disruption of essential businesses of the people into their business model, are driving this. I will speak on that later. First, let me address a few points directly related to the Order Paper.

¶ 03 On vehicle import licensing: Since 2007, several agencies have functioned regarding pre-shipment inspection of vehicles imported from Japan. However, Bureau Veritas was not included as an inspection agency in the Extraordinary Gazette No. 1804/17 of 03 April 2013. Discussions were held with officials of the Ministry of Finance and the relevant agencies in Japan, and as a result, a decision was taken to include Bureau Veritas as an agency authorized to include the vehicle condition certificate, particularly for vehicles imported from Japan. That is the first item under today’s Extraordinary Gazette No. 2428/07.

¶ 04 The second point: When a vehicle is imported, an LC is opened by a local bank on behalf of the importing entity here, and likewise a bank in Japan opens an LC on behalf of the exporting entity there. The documents require official seals of both banks. This amendment facilitates the issuance and verification of the condition certificate and related documentation online. In my view, there is no reason for the Opposition to object to these two matters.

¶ 05 Next, we are adjusting limits of advance/deposit accounts. Many important government departmental activities are carried out through such accounts. In particular, we are raising disaster loan limits provided from the “B” advance account for public officers, and increasing festival advances. A major efficiency barrier in departments is often the limits on these accounts. Today’s amendments propose changes to several stores/deposit advance accounts: explosive-related stores of the Navy, Railway Department stores, and government factory stores. We also cover commercial-type operations in departments: the Prisons Department’s industrial and agricultural activities advance account; and the Educational Publications Department’s printing, promotion and sales advance account. These changes rationalize limits to suit commercial operations.

¶ 06 We are also amending the Special Advance Account, the Emergency Contingency Expenditure Account, and the Miscellaneous Deposit Account of the State Accounts Department. Further, for the Commission to Investigate Allegations of Bribery or Corruption, we are increasing the limit of the controlled “marked money” advance used by the Commission’s enforcement unit in trap operations. Why? Because bribe demands are no longer small; they are large. If Rs. 25,000 traps were once enough, now if the demand is Rs. 75,000, the advance limits must be raised so operations can be conducted effectively.

¶ 07 We are also amending the Customs confiscated goods advance account to improve efficiency of state services. I believe the Opposition has no real disagreement on these.

¶ 08 Hon. Rauff Hakeem said a Cabinet Minister should present these. I also propose that where there is broad agreement, the House should adopt such regulations without debate after the Parliamentary Business Committee confers, preserving time for major subjects.

¶ 09 Now, on salt: As the line Minister, together with the Trade Minister, we intervened. We assumed office in September. The salt issue emerged in December. This is a natural process. We call it “natural salt,” Hon. Deputy Speaker. It forms with sun, wind, and water. First, brine with sufficient sodium chloride is collected in primary pans to reach about 24 percent salinity. It must be cycled in the pans for about three to four months to reduce impurities. If it rains within that time, the percentage regresses.

¶ 10 In December last year, Hambantota had 165 mm of rainfall; Puttalam 448 mm; Mannar 1,188 mm; Elephant Pass 2,328 mm. This rainfall started from October–November. Salt is not formed in December just because you wish it so. For Hambantota, April 2025 had 140 mm rain (compared to 268 mm in April 2024 and 408 mm in April 2023). In March 2025, Puttalam had 132 mm (0.4 mm in March 2024; 57 mm in March 2023). So this is a natural cycle, not because a new Government came that there was “no salt.” After reaching 24 percent in the pans and three to four months’ cycling, brine is moved to crystallizer tanks where it must remain about 45 days. We harvest in the main season starting in May, provided water levels drop and normal sun and wind conditions persist. There are deep tanks as well, but salt from deep tanks is not optimal; 1,300 MT raw may yield only about 300 MT refined, with much going to gypsum. Of roughly 675 sq. km of potential, we utilize about 210 sq. km, but again, you need less rain, sun, and wind.

¶ 11 Overall, the natural process takes at least seven months: three to four months in pans, 45 days in tanks, and another 45 days for stacking/pyramiding to reduce magnesium levels. Therefore, even if it stops raining in December, under normal conditions it takes about seven months to reach marketable salt. Since that was not feasible, we decided in December to import 30,000 MT. Of that, 12,450 MT arrived through the cooperatives.

¶ 12 To address price manipulation by a few private importers (notably Raigam, Hiru, and Mohamed Ghouse—with Raigam importing the largest share representing 18 cooperatives), we decided on 24 March 2025 in Cabinet to import via state entities as well: 10,000 MT for the Fisheries Ministry (especially for dry-fish), 20,000 MT for the National Salt Company, and 20,000 MT for Lanka Salt Ltd., to stabilize supply and prevent manipulation. We ensured distribution via Sathosa where salt is sold at Rs. 120 per kilo.

¶ 13 In line with the Cabinet decision, a guideline of 32 procedural steps for government salt imports has been placed in the Library. Private sector can open LCs and bring shipments in three to four days, but Government procedures are lengthier. From 24 March to dispatch on 16 May, shipments were delayed as Gujarat Port was closed for five days due to India–Pakistan tensions—beyond our control. Rain and weather are not of our making; the Department of Meteorology’s charts are tabled.

¶ 14 Let me be clear: salt does not require a price control; it is an inelastic good on the demand side, so price rises were due to supply constraints. As supply increases, price will fall quickly. With the main harvest in May and imports landed, supply is normalizing. Stock has arrived at port and will reach shops in the next few days. Sathosa continues to sell at Rs. 120/kg. Please stop manufacturing crises where they do not exist.

¶ 15 Regarding claims that at Elephant Pass some said “do not send northern salt to the South,” the minutes of discussions with employees have been tabled. One demand raised was “Transferring salt to other parts of the country,” illustrating the very issue. Another demand was to change the Manager because he was from Kilinochchi rather than Jaffna. Such discriminatory demands are unacceptable. We will act fairly based on performance, not origin.

¶ 16 On reports about a garment factory: one sewing unit of the “NEXT” factory at Katunayake was closed due to lack of profitability in that specific unit; other units at Navagattegama and Adhikarigama continue operations. The Labour Ministry and relevant authorities will engage. Isolated unit closures in a competitive industry occur; we should address workers’ concerns responsibly without sensationalism.

¶ 17 In conclusion, the salt issue has been resolved. Imports have arrived; distribution to retail will be completed within days. Let us not waste Parliament’s time inflating resolved matters.