The Hon. S.M. Marikkar

¶ 01 Hon. Presiding Member, the National People’s Power Government’s—or the JVP’s—so-called inaugural “blessing Budget” is the very exposure of the lies told to mislead the public before and during the Presidential Election. They once asked, “Why borrow to run a government?” Yet, as per their proposals, this Budget runs a deficit of Rs. 2,200 billion to be financed by Rs. 75 billion foreign and Rs. 2,125 billion domestic borrowing—about USD 7.3 billion this year. Sri Lanka’s total debt over 76 years is USD 95 billion.

¶ 02 They said that with the IMF and debt restructuring, we would not need to repay debt. That is a blatant lie. They have allocated Rs. 2,950 billion for debt service. Of the USD 95 billion, USD 12.58 billion are ISBs, where only interest is due until 2028; for the rest, both interest and principal must be serviced continuously. They claim new revenue of Rs. 889 billion, but there is no clear path to achieve it. Projected revenue is Rs. 4,990 billion, of which Rs. 4,590 billion is from taxes—targets that have historically not been fully met. If they try to spend as planned, borrowing will exceed the stated Rs. 2,200 billion (USD 7.3 billion). Otherwise, they will slash welfare (Rs. 1,290 billion) and 69% of development expenditure, reducing the Rs. 1,315 billion capital programme.

¶ 03 First deception: last year, they agitated for a Rs. 20,000 salary hike for state employees. The President announced a Rs. 15,750 increase to the minimum wage effective 8 April; by afternoon we learned the trick—offsetting the existing Rs. 2,500 and Rs. 5,000 allowances. Thus, from Rs. 15,750 they deduct Rs. 7,500, netting only Rs. 8,250—and that over three years. With the earlier Rs. 5,000 already granted, the remaining Rs. 3,250 spread over three years is only Rs. 975 per year—totalling Rs. 5,975. Those who voted by post will realize how they were duped.

¶ 04 Professionals now protest because they were deceived. This, they call “economic democracy.”

¶ 05 Second deception: their policy document, page 66, promised an interest rate 5% above normal on senior citizens’ fixed deposits. Instead, senior citizens get 38%? They misled senior citizens.

¶ 06 Third: What benefits do the people get? Under Ranil Wickremesinghe taxes were piled on everything—food, health, education. The President promised to remove taxes on those three sectors in this first Budget. He said, “When you eat, they tax; when you are sick, they tax; when your child studies, they tax; our first Budget will reduce these to zero.” None of that happened. People who watched YouTube and TikTok believed prices of food, fuel, water, and electricity would fall and voted accordingly. They were shown illusions.

¶ 07 Under the 1950 UNESCO “Florence Agreement,” raw materials for books should be duty-free. But now we pay taxes twice: 33.045% on import of inputs and 18% VAT on sales—contrary to their promise to remove such taxes.

¶ 08 This Budget is Ranil’s Budget in new clothes. On 20 November 2023, Anura Kumara Dissanayake said State Insurance’s profit was Rs. 19,451 million and proposed to allocate 50% to the Treasury and 50% to the institution. He also spoke about the airport and airline. Now, they are selling assets but with new words: calling port terminal sales “Expressions of Interest” or “soliciting aspirations.” Loss-making SOEs to be listed—listing is to sell, not to “document.”

¶ 09 They cried crocodile tears for women and children. In 2021, it was shown in this House how allocations for women and child affairs were cut year after year. Last year, Rs. 19,723 million was allocated; this time, they have slashed it by tens of billions. Seventy percent of women voted for them; now they are betrayed.

¶ 10 On land: Ranil’s 2024 Budget promised a new land law for maximum economic use. Anura’s 2025 Budget speaks of identifying underutilized land and channeling it to private investment including SMEs—both are sales by another name.

¶ 11 On state asset management: Ranil’s 2024 Budget said State Asset Management and SOE Reform laws would be brought by December or Q1 2024. The 2025 Budget says: “The Government intends to introduce new legislation for non-financial asset management...” It’s the same neoliberal template—gold-plated “left” rhetoric masking a right-wing agenda.

¶ 12 For decades they opposed FTZs, national investors, and infrastructure—claiming national security threats and foreign plots. They opposed garment factories—deriding women workers—yet today garments are our top export thanks to President Premadasa’s courage. They opposed Trincomalee oil tank agreements as a security threat; now they consent to cross-border petroleum pipelines. They condemned Port City—now they pursue agreements based on it. They ridiculed expressways; some Ministers even joked about hunting bushmeat. They mocked LRT as “boxes for squirrels”; today they govern.

¶ 13 They also attacked private higher education; what now of SAITM? They have abandoned their dogma to cling to power.

¶ 14 Their manifesto promised: - Housing support for young married couples to buy or build homes—nowhere in the Budget. - Official housing near workplaces for public officials—while cutting real wage gains and allowances.

¶ 15 Private sector executives are squeezed: PAYE at source, then VAT at purchase. The manifesto promised to raise the personal annual tax-free threshold from Rs. 1.2 million to Rs. 2.4 million—effectively Rs. 200,000 per month—yet now it is only Rs. 150,000. They also promised zero VAT for domestic milk, eggs and essentials; infant milk; medicines; schoolbooks and supplies; magazines; library services; agricultural implements; fertilizer; solar panels and components; renewable power equipment; vehicles/adaptive devices for persons with disabilities; and research and development services. None delivered.

¶ 16 They promised installment plans for connection fees for households and SMEs using under 60 electricity units per month—five months into the Presidency, nothing.

¶ 17 This is Ranil’s Budget. Compare: - 2024 (Ranil): customs law modernization for trade facilitation. - 2025 (Anura): “New Customs Law” to enhance facilitation and revenue. - 2024 (Ranil): fast-track National Single Window for trade. - 2025 (Anura): implement The National Single Window via digitization of key border agencies and exporter registration. It’s the same.

¶ 18 Under them, rice prices are Rs. 280 per kg and they are captive to the rice mafia. Past arson at major rice mills destroyed stock, preventing government procurement and strengthening private control.

¶ 19 They insisted IMF terms must be reviewed, yet now they sit atop IMF commitments. Ministers themselves say 2027 will be an IMF Budget and only in 2028 will it be “our” Budget. Admit you lied to win votes.

¶ 20 They promised justice to EPF/ETF holders after domestic debt optimization reduced interest due. What have they done?

¶ 21 Hon. Presiding Member, this country once offered a Vitz car for Rs. 1.2 million—they mocked that promise; now they’ve matched it in empty rhetoric. This so-called inaugural Budget has wrecked the people’s mobility by making vehicles unaffordable. In short, JVP wears Ranil’s trousers and marches forward.

¶ 22 Thank you.