The Hon. Gayantha Karunathilleka

¶ 01 Hon. Speaker, I am pleased to open today’s debate for the Opposition on the Second Reading of the Budget.

¶ 02 This is the Government’s second Budget. Listening for four and a half hours, I was reminded of the death-defying “wall of death” motorcycle show at our village fairs. The bike roars, circles at speed, and finally stops where it started; onlookers say, “A lot of noise, but it ended up in the same place.” That is how people describe this Budget—much noise, no movement.

¶ 03 Every government brings a Budget; a year later, most proposals should be implemented, with a few lapses. In this Government’s first Budget, most proposals were not acted upon. Over 60% of 2025 capital allocations were not spent. Of 54 proposals, 16 recorded progress under 25%—showing the Government’s incapacity. Last year’s outcomes show that despite rhetoric, the walk has been a stumble.

¶ 04 Some proposals were re-tabled unchanged this year: a National Single Window for investment (promised in 2025 and again now), a PPP Act (then and now), an Investment Protection Act (then and now), a new Customs Act (then and now), a Digital Economy Act (then and now). With 159 seats—nearly two-thirds—this Government still cannot deliver. If you re-list 2025 promises in 2026, and again in 2027, we will not be surprised—by now people understand the gap between your words and deeds.

¶ 05 The President’s signature theme before and after assuming office was digitizing the nation. Yet this Budget allocates Rs. 16 billion for digitization, while Rs. 12.5 billion is allocated to import vehicles—including brand-new vehicles for those who gave no relief to the people. Vehicles: Rs. 12.5 billion; digitization: Rs. 16 billion. Where are the priorities for the future generation?

¶ 06 Teachers played a decisive role in bringing this Government to power, unprecedented in history. Your chief campaign plank to win them was to eliminate teacher salary anomalies. We ask: what is in this Budget to resolve those anomalies? Please clarify.

¶ 07 You claimed on the political stage, “Women, we are with you.” With over 52% of our population being women, we expected sizable allocations and detailed programmes for women’s advancement. Yet the President spoke more pages about elephants than about women—a surprise indeed, while acknowledging human-elephant conflict is also serious.

¶ 08 Your policy document “A Prosperous Country – A Beautiful Life” promised on page 103 to remove VAT entirely on schoolbooks and supplies. People hoped for zero VAT. Neither last year’s Budget nor this one did so.

¶ 09 Education inequality is stark; money increasingly determines outcomes. The JVP leaders now in Government once exploited the frustrations of students whose education suffered due to economic hardship, even turning that anger into classroom hostility. You owed it to the nation to honor the pledge to zero-rate VAT on schoolbooks and supplies—two Budgets in, and you have failed.

¶ 10 Those now in Government led teacher marches demanding 6% of GDP for education, and rallied graduates to the streets. Many of those leaders, including professors and doctors—even the Prime Minister—are in Cabinet today, yet allocations fall short.

¶ 11 The same forces that opposed privatization through strikes are in power. Now, when the public demand answers, your reply is “let’s see.”

¶ 12 You told unemployed graduates from the Budget podium to stop protesting and pass their exams—yet these are the very people you once led to the streets. This is the most ungrateful government we have seen—kicking down those who lifted you up.

¶ 13 On our security forces: we all breathe freely because of our brave war heroes. Their families expected at least an increase over the meagre Rs. 750 allowance (as ex gratia for the Fallen War Hero Guardian/Dependants). This Budget dashed those hopes.

¶ 14 Whole sectors are forgotten: hundreds of thousands of small tea growers who add immense value at no fiscal burden; they, along with poultry farmers and rubber growers, are ignored. How will you build a production economy if you forget producers?

¶ 15 Over 51% of import spending last year went to food and beverages: rice, coconut, salt were imported. A developing country should channel more imports to capital goods that build productive capacity, not consumption. The President himself said before power that one did not need a government to do this—any Pettah wholesaler could. This Budget aims more to maintain the economy than to develop it.

¶ 16 Beyond IMF targets, you have overtaxed the people. Our Leader of the Opposition demonstrated how actual collections exceed IMF targets. VAT and Social Security Contribution Levy have been expanded. A trader or service provider turning over Rs. 100,000 a day will newly fall into VAT/SSCL nets—burdens that pass on to consumers.

¶ 17 SMEs, already battered post-COVID, struggled to repay loans and faced auctions. The lower VAT threshold will further hinder recovery, and consumers ultimately pay.

¶ 18 International school parents will now shoulder an extra 20.5% in taxes. There are many more examples, but time is short.

¶ 19 Your manifesto (page 194) promised a new Constitution through public consultation and referendum; removal of the Executive Presidency and shift to a parliamentary system; and a new electoral system. We ask: where are the allocations and timelines? Two Budgets in, there is silence—are these becoming broken promises?

¶ 20 Finally, before coming to power, you said Provincial Council elections would be held within a year. When our General Secretary asked during the Budget, the President said Rs. 10 billion has been allocated for elections, but that Parliament must decide the date and to bring a resolution. We therefore request, together with all Opposition leaders, that under the Prime Minister’s leadership a Committee be appointed urgently to facilitate Provincial Council elections. We will fully support holding them under the existing system so the people can choose and Councils be re-established.

¶ 21 On Mahapola scholarships: Members on both sides spoke; I welcome that. Regardless of which government created it, we value the scheme. It began at my village’s Niyagama Wijitha Maha Vidyalaya, and its 40th anniversary was in Aluthgama Ananda Vidyalaya in the electorate I represent. The late Lalith Athulathmudali was a statesman who valued education. Thank you, Hon. Speaker, for the extra time.