Hon. (Dr.) Madhura Senevirathna - Deputy Minister of Education and Higher Education

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to join this historic Budget debate.

¶ 02 First, responses. Regarding an alleged plan to move a Divisional Secretariat from Norwood to Hatton: our policy is to take services to the village, not withdraw them. That will not happen. Several MPs represent the hill country; following this historic wage increase after 200 years, I trust you will support this Budget.

¶ 03 The 2026 Budget must be read with 2025. We came to office when the country was in severe crisis. Compare to other countries: Greece took about ten years after 2007 to normalize. We stabilized Sri Lanka within a year. Previously, indicators had plunged: high interest burden and debt, soaring inflation, broken external reserves and tourism, collapsing FDI and services. Tax policy was narrowed to a small file of 600 top payers with 69 percent coverage, leaving a wealthy cohort untaxed. Medicines were in short supply; poverty was around 25 percent; monthly real incomes fell about 60 percent per the CPI; 77 percent experienced food inflation impacts; food security was low; malnutrition was high. In 89 percent of households, people were in debt, had sold assets, or borrowed at high interest.

¶ 04 Within one year we reversed course, sometimes with tough policies, anchored on three pillars: fiscal discipline, attacking institutionalized fraud and corruption, and taming inflation. We achieved a Rs. 1 trillion Treasury surplus; improved revenue via Customs and Inland Revenue; broadened the taxpayer base; and, with digitalization ahead, expect higher collections to reduce the VAT burden — indeed we already reduced VAT after the last Budget.

¶ 05 We restructured state enterprises and debt; secured strong bilateral support, including haircuts; increased reserves; revived tourism to historic highs; and attracted growing FDI. Alongside macro stabilization, we extended welfare: harvest support, wage increases, senior citizens and persons with disabilities benefits, and uplifting estate communities — all under a platform of integrity and fiscal discipline, including using the Proceeds of Crime laws. We rebuilt international confidence by demonstrating fairness and transparency.

¶ 06 Our forward agenda rests on six pillars: inclusive and sustainable growth; export diversification; debt sustainability; a production economy; rural poverty eradication; and digitalization. We will support SMEs across sectors, notably agriculture, and target youth and women entrepreneurs, with substantial allocations.

¶ 07 We increased Mahapola and student bursaries, expanded student loan amounts, and are finalizing MoUs to send students to the world’s top universities. For a production economy, R&D is critical. For the first time, we allocate Rs. 21 billion for research and development.

¶ 08 Hon. Deputy Speaker, please grant me half a minute.

¶ 09 This is the boost phase for the economy, agriculture, education, and public service. In summary: in 2025 we set the course and stabilized; in 2026 we move to targeted, goal-oriented growth. A national Budget is a common plan for everyone’s future. Read the documents and engage constructively; we welcome reasoned critique.

¶ 10 Thank you.