The Hon. Asitha Niroshana Egoda Vithana

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to comment on the proposal to revise taxes on electric vehicles.

¶ 02 You know what kind of State we inherited. An Opposition Member spoke earlier of a continuously open vehicle market where anyone could buy any vehicle. In 2021, the economy and vehicle market were shut. In 2025, we reopened them in phases. It is because of that Government decision that the Opposition can now speak about the vehicle market. We did not act lightly; people’s lives come first. We manage the economy carefully, monitoring data and Treasury cash daily, to move toward stability.

¶ 03 Reopening the vehicle market has reactivated a large ecosystem—sales outlets and many ancillary activities—reviving direct and indirect employment. Another Government aim is to strengthen public transport rather than only the individual. Accordingly, this Budget allocated significantly to rail and to restart projects like the Central Expressway—reactivating public investment.

¶ 04 Regarding EV tax adjustments, our policy direction is environmentally friendly. But you also know how Sri Lanka generates electricity. Total daily generation is around 49.89 GWh; large hydro about 18.928 GWh; small hydro about 5.27 GWh; and a substantial balance from coal, furnace oil, naphtha and diesel—about 18.17 GWh together. Even if we maximize renewables daily, the marginal additions often come from thermal. Therefore, we must increase the renewable share to protect the environment.

¶ 05 On solar, storage is a constraint. Hence, we are encouraging solar projects with battery storage. Unregulated rooftop additions in the past have stressed the system technically. Additional EV demand would currently be met at the margin by oil or coal. Therefore, the simplistic argument breaks there; as a nation, we should first raise the renewable share while proceeding prudently.

¶ 06 EVs have lower operating costs than fossil-fuel vehicles, making them attractive to environmentally conscious and ordinary consumers alike. The Opposition, however, has a political crisis after recent elections; their lament is played out here for hours. The people rejected them nationally and again at local level. The Government’s EV tax adjustment is a carefully considered Treasury/Finance decision to stabilize the market, protect reserves, and meet people’s needs. It is not to burden ordinary people. It is taken with a long-term perspective to protect the economy and stabilize lives. Thank you.