The Hon. Rauff Hakeem, Attorney-at-Law

¶ 01 Hon. Deputy Speaker, the Hon. Member from Nuwara Eliya, who spoke earlier, said the Opposition asks childish questions. We must remind her this Government blamed cats and dogs when coconut and rice prices rose, and even a dog when the power system collapsed. With such a comical Government, we too might make remarks—do not take them to heart.

¶ 02 This morning, the Prime Minister spoke of a new direction and said this Budget turns a new leaf. In my view, this is a Government that signals left and turns right. Our Leader of the House says it goes straight; straight into a pit, I say.

¶ 03 Allow me to continue in English.

¶ 04 Recognizing both growth potential and the need to manage risks, the President, as Finance Minister, has presented this Budget at a crucial recovery juncture, where fiscal discipline is imperative. Under the IMF EFF, fiscal consolidation is a priority, with expenditure constraints shaping allocations. Revenue is estimated at 15.1 percent of GDP; expenditure at 21.8 percent—leaving a 6.7 percent deficit, raising sustainability concerns.

¶ 05 Debt servicing will consume a large share of revenue. Any spike in rates or rupee depreciation can trigger imbalance. Any dip in revenue or external shock could cause fiscal slippage.

¶ 06 The Daily Mirror of 24 February 2025 quotes Senior Economic Adviser Duminda Hulangamuwa saying Sri Lanka can spend up to US$1.2 billion on vehicle imports in the first year and target Rs. 300 billion in taxes. But the Deputy Minister (Prof. Anil Jayantha) says, per the same paper, “Govt. targets Rs. 300 billion from vehicle taxes, but many remain skeptical,” and he hints they could revise down taxes if demand fails to pick up—citing even a Central Bank indication to reduce duties. Is this a wise statement? If you say duties may be reduced, who will place orders now? How will you reach Rs. 300 billion?

¶ 07 Fitch Ratings, per Economynext (20 Feb 2025), says the 2025 revenue target is achievable but long-term challenging, dependent heavily on smooth import liberalization, notably vehicles. When Fitch says this, your Deputy Minister discourages LCs by hinting duties may fall. How will you meet the target?

¶ 08 On pensions: with wage and pension increases, a medium-to-long-term strain arises. Our public pension is unfunded—paid from the Consolidated Fund—unsustainable with ageing demographics. We need a contribution-based transition strategy, possibly a hybrid: new entrants contribute; existing staff get partially funded schemes. Establish independent, professionally managed pension funds; encourage complementary private pensions; index benefits to inflation and GDP rather than arbitrary hikes. Seek multilateral and bilateral technical assistance. If you speak of a new direction, this is where you should go.

¶ 09 On public safety: more than 70 killings have occurred since this Government took office. In the Gampaha court incident, within 48 hours a suspect in police custody was killed. The President, when in Opposition, criticized custodial killings, saying one cannot shoot detainees and then spin stories. Now when such incidents occur under his Government, what is the response? The Bar Association urges the IGP to inquire and take preventive measures against encounter killings and custodial deaths. The Supreme Court in 2023 ordered the IGP to issue guidelines on handling detainees. Are the police complying? Such killings are an affront to the rule of law.

¶ 10 The Prime Minister said they will crack down on the underworld. Have you inventoried illegal weapons? During the JVP insurrection, many arms were looted—have you recovered and decommissioned them? Most killings are with unofficially held arms, not official weapons. Act accordingly.

¶ 11 To conclude: enhance tax collection mechanisms; ensure fiscal discipline by streamlining expenditure; encourage private sector-led growth; increase transparency in public spending; strengthen social safety nets with targeted subsidies. The Budget addresses some issues, in line with IMF guidelines, which we appreciate. But you signal left and turn right. We wish the Government well, but given the treatment of the Opposition—Committee compositions not restored—we are constrained to vote against this Budget in protest.