The Hon. Sunil Kumara Gamage – Minister of Youth Affairs and Sports

¶ 01 Hon. Presiding Member, I am pleased to speak on the 2025 Budget. I am happy because this is the first Budget that turns Sri Lanka’s socio-political-economic system toward a new direction. Through this 79th Budget, we expect to create a new political and economic culture. This Budget will begin a distinct chapter in our history; it is a privilege to speak on it.

¶ 02 Throughout this debate, some in the Opposition invoked neoliberalism, liberalism, socialism, Marxism—sometimes knowingly, sometimes for argument’s sake. Earlier Budgets did not trigger such discourse; that itself is a positive sign—society is attempting to study and understand.

¶ 03 In earlier years we saw Budgets for “Asian Miracle,” “Vision of Prosperity,” etc. The end result was a bankrupt State. Our past Budgets came with glossy names and words, but left us with an unliveable socio-economic environment.

¶ 04 Since the 1977 open economy, it culminated in poverty and bankruptcy, with deaths in queues. We took power to change that society. Presenting this first Budget is our first step in that change.

¶ 05 On “system change,” this Budget lays the foundation. We aim to change the directions in politics, society and economy—starting with curbing corruption, fraud, theft, waste and unnecessary expenditure. If any Opposition Member wants details, meet us; we can list the system changes we implemented in the past two to three months.

¶ 06 Some claimed the Budget lacks revenue details. How can there be a Budget without revenue? The book begins with revenues: tax revenue Rs. 4,590 billion; non-tax revenue Rs. 422 billion; grants Rs. 308 billion; Provincial Council revenue Rs. 838 billion; total revenue Rs. 5,125 billion. Please read before claiming otherwise. They are used to Budgets that only raise VAT and income taxes; absent that, they say there is no revenue. Here, revenue is presented.

¶ 07 We need to reform tax revenues and increase non-tax revenues by making State assets productive. Unfortunately, past governments wrecked revenue-earning State enterprises—ports, water, petroleum, power—by stuffing them with political hires, making them loss-making. We are rebuilding them to increase non-tax income. This Budget projects Rs. 103 billion as income from State enterprises; it should be higher, but given past performance, we must improve efficiency to get there.

¶ 08 Recurrent expenditure is Rs. 2,970 billion; interest payments Rs. 2,950 billion—almost equal to running the State. Debt is not inherently a curse; but debts must create assets and income. Today we pay massive interest because past debts did not create real assets.

¶ 09 Our difference: from the Rs. 2,970 billion recurrent spend, we do not pay salaries to our aunts, uncles and friends—no political payrolls. That is system change. We will spend genuinely; no commissions to friends through contracts, no payments to relatives.

¶ 10 Some question figures like allocations appearing small. For example, Rs. 248 million in 2025 for a three-storey cancer unit at Ratnapura Hospital—people ask how you build it for that sum. This is a multi-year project: Rs. 248 million in 2025, Rs. 400 million in 2026, Rs. 500 million in 2027. The total comes then. Similar with housing lines queried earlier.

¶ 11 Capital expenditure is investment—the engine to build the economy. This Budget allocates the highest ever capital expenditure: 2021 Rs. 963 billion; 2023 Rs. 932 billion; this year Rs. 1,315 billion. Unlike before, there will be no corrupt tenders and cronies; this will build real assets. In the past, even with such sums, little real capital was created—hence today’s huge interest burden.

¶ 12 On national unity, this Budget allocates significantly for the North: Rs. 5,000 million for roads, Rs. 4,267 million for estate housing, Rs. 1,000 million for the Mullaitivu Waddduvakal Bridge, Rs. 3,500 million for housing in conflict-affected areas. Also, Rs. 100 million is allocated to the Jaffna Library—an initial gesture of atonement from the South. Northern MPs should at least acknowledge this. We will not permit Sinhala, Tamil or Muslim chauvinism anywhere; this Budget demonstrates building national unity.

¶ 13 Time is up; I conclude. Thank you very much.

¶ 14 [6.00 p.m.] Business was interrupted, and the Debate stood adjourned. Debate to be resumed on Monday, 24th February, 2025.