The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Deputy Chairperson of Committees, three main items are before us: a regulation under Section 22 of the Foreign Exchange Act No. 12 of 2017; a regulation permitting motor vehicle imports under the Imports and Exports (Control) Act No. 1 of 1969; and a regulation on rice imports under the same Act.

¶ 02 We must consider how to use the legal framework to manage the current situation and move forward. We had an unstable economy. We have transformed that unstable economy into a stable economy. It has not recovered fully, but some breathing space has been created. Based on current conditions, these Gazettes chart a prudent path.

¶ 03 When we mismanaged, reserves collapsed; we could not import medicines, fuel, or educational materials. Now, gradually, we have stabilized. But if we proceed rashly, cost of living pressures could surge. Every additional rupee per dollar affects all imports, not only vehicles—food, medicines, essentials. Hence careful phasing is vital.

¶ 04 On vehicles, leasing and loans can increase credit demand and influence interest rates. We considered such macro effects. Socially, the broken public transport system forces individual vehicle ownership. Therefore, in the first phase we prioritize strengthening public transport, and also provide for tourism which carries significant economic weight, by enabling the necessary vehicle fleet.

¶ 05 To integrate into global value chains, we must improve competitiveness, including lowering energy costs. Our largest single import bill is petroleum. These Gazettes are part of a calibrated approach, aligning with fiscal relief for the vulnerable—Rs. 6,000 grants for schoolchildren, increased fertilizer and fuel support for farmers and fishers—while supporting businesses and domestic value addition. This is not about who gets the biggest commission; it is about placing the country, people, and enterprise first.

¶ 06 Some now cry that taxes on vehicles are high—the same crowd that once drove race cars by the Temple of the Tooth. Others talk about tenders and private losses but ignore efforts to reduce electricity bills for the public. Whose side are they on?

¶ 07 They claim the public rejected market economics. No—the public rejected theft, corruption, and “highway robbery,” not markets. We inherited Customs without the necessary scanners, processes, or staffing. As imports rise with recovery, we are providing the needed facilities and systems. The Department of Customs has issued statements on measures being taken. Through sound financial and expenditure management, we will deliver relief, support SMEs, and protect domestic value-adding industries. Thank you.

¶ 08 Question put, and agreed to.

¶ 09 Imports and Exports (Control) Act: Regulations