The Hon. Vijitha Herath - Minister of Foreign Affairs, Foreign Employment and Tourism

¶ 01 Hon. Deputy Speaker, the people know we inherited a declared bankrupt economy. The new Government, through a short-term programme, has reversed that condition and is giving a new start with short-, medium- and long-term plans.

¶ 02 To stabilize the economy, we need a production-based growth path — of goods and services. That is our policy. We are at the starting point of a long-term production-focused plan. Accordingly, we made decisions to reduce production costs — lowering electricity tariffs for tourism and industry, and providing fertilizer support for agriculture. These build the foundation for long-term production-led growth.

¶ 03 We are managing the current crisis through an IMF programme as a temporary measure. Long-term goals are hard with the IMF alone, but it allows us to climb out of the pit. We are meeting targets; the third review is scheduled for the 28th of this month, after which the fourth tranche of US$ 335 million is expected. We are optimistic.

¶ 04 Our reserves are now stably at US$ 6.1 billion. We are targeting a primary surplus of about 2% of GDP and capping capital expenditure at about 4%, managing the budget accordingly. While the Opposition gropes in the dark, we are on a long-term, strategic path, steadily and strongly. The people gave us the mandate; we will not act contrary to it.

¶ 05 People also expect eradication of corruption, fraud and waste, and a clean administration. We have already laid the foundation: the first ever peaceful, free presidential and general elections, with no violence or post-poll violence, setting an example to the world.

¶ 06 We are creating an environment for all communities — Sinhala, Tamil, Muslim, Burgher, Malay — in the North, East, estates, and elsewhere to live peacefully and democratically. We have also initiated clear investigative mechanisms against those who bankrupted the economy and engaged in corruption, fraud and killings, proceeding meticulously, lawfully and at the right time.

¶ 07 The present political stability, with a strong parliamentary majority, is observed by the world. Therefore, investors now see a path of orderly economic growth and are coming — from India, China, the Middle East, the USA and Europe. We are strengthening diplomatic relations with all. To secure and promote investment, we are concluding investment promotion and protection agreements. On our first visit, we signed to establish a Commission with the UAE to strengthen investment promotion. As stated in the Budget Speech, we will strengthen the legal framework to protect and promote all investments coming to Sri Lanka.

¶ 08 In the short term, to boost reserves and FX inflows, we are strengthening tourism and foreign employment. Tourism had collapsed due to COVID-19, Easter attacks, the crisis, and poor governance. We are proud to say 253,000 tourists arrived in January alone; about 315,000 in the last month and a half. As arrivals rise, we are improving quality with new legal frameworks. We are establishing a National Tourism Commission by uniting all relevant agencies — Tourism Ministry, Wildlife, UDA, local authorities, Tourist Police, Central Cultural Fund, Archaeology, etc. A Cabinet paper has been submitted; upon approval, we will draft the necessary Bill and, once passed, establish the National Tourism Commission.

¶ 09 In parallel, we will set up Regional Tourism Development Committees in key zones such as Ella, Sigiriya, Nuwara Eliya and Negombo, bringing all agencies together for integrated operations. This will speed up decisions on tickets, sanitation and other basic facilities.

¶ 10 We are also facilitating new investments and hotels. For those on the ground — guides, drivers and other workers — we are introducing an insurance scheme and a contributory pension scheme; legal work is underway and will be implemented shortly.

¶ 11 Today is World Scout Day. Throughout the day, Scouts are cleaning 110 railway stations, supporting our efforts to make stations clean and tourist-friendly. We thank them.

¶ 12 We have also started digitizing processes to reduce delays, including e-ticketing. With these gains, we reached about 2.2 million tourists last year; in 2025 we aim for 3 million. This will create jobs and strengthen the economy.

¶ 13 Foreign employment had been rife with fraud and corruption, enabled by some past Ministers and certain officials. One infamous abuse was the 118-visa scheme — agreements signed unilaterally by a Minister without Cabinet or departmental approval. We have reversed this and, at the last Cabinet meeting, obtained approval to regularize the 118 visa process under proper procedures.