The Hon. Faiszer Musthapha, PC

¶ 01 Hon. Presiding Member, I consider it a privilege to speak on the inaugural Budget of this Government.

¶ 02 Any Budget has positives and negatives. As a responsible Opposition, when we present negatives, do not look at us with a jaundiced eye. The allocations for education and health are a significant achievement; the country needs education upliftment, and I commend the Government. The Rs. 2.5 billion allocation for sanitary pads for women is also essential.

¶ 03 On vehicle tariff policy, I remind the Government of its promises: to allow a person on a push-bicycle to own a motorcycle; someone with a motorcycle to get a three-wheeler; and to access a small car. But today a motorcycle costs about Rs. 600,000 and a car Rs. 5–6 million. This denies the ordinary person’s dream. After a five-year import ban, many three-wheelers have exceeded their five-year lifespan. Now importing a three-wheeler costs about Rs. 2 million. I acknowledge I was a Minister, but I am fairly presenting both positives and negatives. Three-wheeler owners and drivers have dreams. So do motorcyclists who aspire to buy a car, but they cannot now. Public servants—over one million—previously had duty-free permits; today they cannot afford a vehicle under current tariff policy. I request restoring permits aligned with current policy to this deserving group.

¶ 04 I also urge a lenient duty approach for electric vehicles. The long import ban increased environmental pollution. A remedy is to bring in as many EVs as possible—electric cars, motorcycles, and three-wheelers—with a lenient duty approach.

¶ 05 On construction: everyone dreams of owning a home, but building costs are high. Tariffs on building materials make home ownership unaffordable for ordinary people. Previous import restrictions birthed some domestic industries, but benefits did not flow to consumers—only to certain companies. Please review this.

¶ 06 In many countries the first-home owner receives tax concessions. We had such relief before; now it is gone. If you could consider a tax concession for first-home owners, it would greatly benefit the people.

¶ 07 Tourism numbers have increased, but in the South and East we see many foreigners working in jobs. Under law, with BOI approval and a US$ 250,000 investment, a foreigner can engage in tourism; but even under general law, companies register and obtain Sri Lanka Tourism Development Authority permissions, leading to many foreigners working and displacing locals. Having served as Tourism Minister, I request stricter policy to regulate foreign employment in tourism—particularly in the South and East—where we see large increases. Locals are losing opportunities in areas like kitesurfing and water-skiing due to foreign trainers. If the Budget expects significant tourism revenue, we must act or we will lose it.

¶ 08 Any foreigner can now lease land in Sri Lanka for 99 years by paying a 2% stamp duty after this Budget. If executing a Sinhala Deed, the Government Valuer’s proper valuation should apply. Deputy Minister of Finance is present: please review this. In the South and East, foreigners can lease land for 99 years and mortgage those leasehold rights to banks. In 2012–2013, 100% stamp duty was required; now this has changed, allowing foreigners to lease land in Bentota, Arugam Bay, etc., with any consideration embedded in the lease while only the Government valuation applies to duty. Policy changes are needed so Sri Lankans benefit from tourism growth.

¶ 09 Investment is essential. Please revisit investment incentives. Other Asian countries offer substantial tax and non-tax concessions. If we only build industrial zones without a supportive incentive framework, we will fail.