The Hon. Harshana Suriyapperuma

¶ 01 Hon. Presiding Member, accordingly, in implementing this Government’s program, we are prepared to undertake necessary structural reforms at the appropriate times; to revise tax policy suited to the country to raise revenue; to provide required facilities to the people; and to deliver the stability essential for the development process.

¶ 02 These policies are founded on social justice and merit—approaches not seen in past systems and administrations. They prepare the roadmap to the goal “A Prosperous Country – A Beautiful Life,” laying the foundation for our children’s future. As we said earlier, the Government will implement similar organized programs to improve the governance structures of state-owned enterprises, strengthen performance frameworks, and ensure proper recruitment and promotion processes without political interference by empowering HR departments under fair and transparent mechanisms.

¶ 03 By strengthening production across the state, private and SME sectors together, we aim to increase national income, reduce government expenditure, and steer the economy onto the right path. Similarly, to succeed in this journey, tax revenues must reach the Treasury without leakages and not into private pockets, thereby maximizing public benefit.

¶ 04 Previously, the Government was labeled the largest borrower in the market. As we gradually reduce state borrowing from the market, demand for credit falls and interest rates have declined. Under those “economic experts” who ruled before, interest shot up, hurting not only large businesses but especially SMEs.

¶ 05 We are managing the economy prudently—reducing inflation, lowering interest, building reserves, stabilizing the exchange, and providing relief—while the Opposition, unable to withstand it, tries to obstruct a program that advances social justice. As this program progresses, economic growth will be attained, and the Government will intervene as needed to facilitate it. The private sector now has the space to transact properly with banks. You know this country had lost credibility to even open LCs under the previous regime; we have pulled the country out of that. Independent rating agencies have upgraded us. These outcomes are due to sound economic management.

¶ 06 A conducive environment is being created for large businesses, foreign investors, and SMEs. For youth aspiring to entrepreneurship and innovation, state banks have already begun collateral-free lending schemes. The Opposition said this could not be done, but we have launched it. Both state and private banks are extending relief and restructuring to SMEs. In consultation with the Central Bank, we are working to further improve facilities within these programs.

¶ 07 Our effort is not merely to cut costs or grow reserves, but to expand the economy—moving towards a production economy and enabling domestic producers to reach export markets through the necessary structural reforms now underway.

¶ 08 We are mindful that excessive electricity tariffs harm not only consumers but also industry. Therefore, the Government will intervene prudently, using data and independent institutions, to steer that path responsibly. We will not be swayed by misinformation. The adjustments to taxes on electric vehicles are not to discourage EVs or curb public interest. Even today, the lowest vehicle tax rates are for EVs, reflecting the Government’s maximum feasible support. Together with the private sector and importers, we will expand the nationwide EV infrastructure under a clear roadmap.

¶ 09 Overall, we aim to re-lay the foundations with a modern structure, so that at least the next generation recovers what the last decade lost—raising revenue without burdening citizens unduly and providing the services required. Since the date of this Gazette, it has been in operation, and Sri Lanka Customs and other agencies are implementing it well. The best indicator is the revenue realized so far, which aligns with projections, while outflows remain within expected limits—showing the Government’s decision is correct. Despite the Opposition’s objections, the public and the business community are moving forward with this program. We will guide importers to comply correctly and, with officials including Customs, secure the maximum due revenue for the State, while enabling consumers within the tax bands to support the ongoing journey.

¶ 10 Thank you.