The Hon. Ravi Karunanayake

¶ 01 We must implement a program to give incentives. Not act merely as the IMF dictates. I say this based on our 16th engagement with the IMF and the lessons learned. We should negotiate with the IMF to encourage investments and find ways to quantify and collect the revenue due. As interest costs on Treasury securities rise, each 1 percent increase adds Rs. 160 billion to expenditure. Therefore, interest rates must be reduced. With current bank interest and costs, we are surprised businesses still survive. The Central Bank must act more humanely. We said this then and say it now. We must move these matters forward.

¶ 02 If not, by September, with revenue flat and expenditure rising, we face issues. Capital expenditure is Rs. 1,346 billion. Six months have passed since this Government took office; as the rest is spent, problems will show.

¶ 03 We need to increase revenue from all sides and boost investment. I tell the Government always: do not worsen problems faced by business. On May Day, President Anura Dissanayake said unions must not only ask but also give. Yet two days later, there was an issue with railway services.

¶ 04 We must act nationally. About 70 percent of GDP comes from SMEs; another 10 percent from the private sector. So 80 percent is private sector-led. We must incentivize the private sector, reduce taxes where possible, and thereby encourage them. To attract investment, reduce the inflation-adjusted cost and enable qualifying payments as a target with the IMF. Time is up; I conclude. Thank you.