The Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law

¶ 01 Thank you, Hon. Deputy Chairperson of Committees.

¶ 02 Two regulations on vehicle imports have been presented today. Vehicle imports were banned for a long period; many imports were prohibited in recent years. When our Government assumed office in November, we announced that we would allow vehicle imports under three categories. The final Gazette has now been issued.

¶ 03 There is wide social discussion—especially among those who voted for us—about vehicle imports and prices. We must recall why Sri Lanka restricted vehicle imports: in April 2022, we declared bankruptcy due to inadequate foreign exchange to service external debt. In 2018 alone, about USD 1.8 billion was spent on vehicle imports. Due to insufficient forex, imports were later restricted or halted.

¶ 04 By April 2022, the forex shortage affected not only debt service but also essential imports—food, medicines, and fuel—causing power cuts and severe hardship: fuel queues, food shortages, medicine shortages, deaths in gas queues and protests. The main reason was inadequate foreign exchange. Though the crisis has eased to some extent, as the President and Finance Minister remind us, the economy is still vulnerable.

¶ 05 This year, after completing debt restructuring, we must resume debt service in foreign currency. Payments not made over the past two to three years fall due this year. The people elected us to rebuild the country so no one suffers or dies in queues again. Therefore, we will take decisions carefully to prevent another crisis, including allowing vehicle imports with limits and taxes to protect reserves.

¶ 06 If we overspend foreign exchange recklessly, the rupee will depreciate, causing prices of essentials—food and medicine—to rise. We import many essentials, including fuel. A weaker rupee raises those costs. Therefore, our measures are not to protect any private sector party but to protect the economy and people.

¶ 07 People want good transport for themselves and their children. We are committed to that, which is why—given issues in the private sector—we are investing in and promoting public transport. We are repairing and importing buses, and repairing railways. The Government is working to improve public transport standards. While there may be short-term inconveniences, we must all devote ourselves to rebuilding.

¶ 08 Finally, we are not asking only the public to make sacrifices. There were media reports about importing vehicles for MPs. That is false. We are not importing vehicles for MPs or anyone else’s special benefit. We are all here, like you, to rebuild the country, not for private gain. Let us unite to fulfill this responsibility. Thank you.