The Hon. K. Sujith Sanjaya Perera

¶ 01 Hon. Deputy Speaker, I am pleased to speak during the debate to approve regulations under the Imports and Exports (Control) Act.

¶ 02 During the previous government, when vehicle imports were restricted or banned, our then-Opposition—including the current President and Ministers—said that once in power, they would allow vehicle imports. They harshly criticized the then government for denying people the opportunity to buy vehicles. It was also said that a vehicle could be provided for around Rs. 1.2 million. They claimed the government then was refusing to do so.

¶ 03 I ask the current Government: have you enabled people to buy a Japanese bicycle or a vehicle at affordable prices as you promised?

¶ 04 No matter how many orders you amend, it is apparent there is a problem. Vehicle importers say they cannot import vehicles now, and even selling the limited stock already brought in is not possible. The main reason is the very high taxes and levies. Due to excessive taxes, citizens cannot afford vehicles. Today, buying a vehicle at a concessionary price after paying these heavy duties is a dream. I urge the Government to go beyond merely removing certain procedural hurdles: reduce these excessive duties so citizens can purchase vehicles at affordable prices. People aspire to buy a three-wheeler, a motorcycle, or a small car at a reasonable price.

¶ 05 On the other hand, the Government expects significant tax revenue from vehicle imports. But that expectation too has become a dream; the projected revenue will not materialize. Even with concessions and removing obstacles, importers are not inclined to import vehicles in the coming period. Therefore, no matter what you do, it will not yield benefits unless you reduce the excessive duties and make vehicle imports affordable.

¶ 06 It is not only vehicle importers: many others import goods, and there are exporters too. Today, when importers and exporters go to the port and customs, they face numerous obstacles. We saw that containers could not be cleared for months. Even now, after 6–7 months of this Government, proper solutions have not been provided. There are still allegations of corruption and bribery—some officers demand payments; “services” must be provided to get goods released. You came to power to eliminate corruption. Therefore, along with legal amendments, focus on resolving issues at the port and customs: implement a process for releasing goods without corruption, bribery or under-the-table payments.

¶ 07 On exports: this is crucial, especially now when we lack foreign exchange. We must service foreign debt in dollars over the next 1–2 years. Yet we do not see a clear plan to generate foreign exchange, nor to remove obstacles. Apparel is the best example. Apparel is our main foreign exchange earner. But the sector is in deep crisis. Owners say they cannot continue. A prime example: the old “NEXT” apparel factory in Katunayake has been closed; about 2,000 workers are on the streets. We need a plan to protect such industries; the Government must take the lead. Merely coming here and listing past frauds won’t solve this. Their concern is rising costs—electricity bills are being increased. How will factories operate with rising power tariffs? They ask for measures and relief to keep factories running and reduce costs.

¶ 08 Our other main export is tea, and it too faces a major crisis. Factories complain of rising production costs, which reduce incomes. As costs rise, payments to smallholders per kilo of green leaf must be reduced. The Government must focus sharply: remove obstacles to export growth and provide necessary cost relief. Otherwise, no matter how much we talk here, there will be no good outcome and the country will not move forward. Rather than trading accusations, implementing a structured program is vital. We must protect our two main foreign exchange earners—apparel and tea. If those fall, we have nothing more to say; domestic revenues alone cannot sustain us without foreign exchange. I do not see, in these six months, any plan that provided relief for apparel and tea. Therefore, while urging a program to protect those sectors, I thank you for the time given.