The Hon. (Mrs.) Geetha Herath, Attorney-at-Law

¶ 01 Hon. Presiding Member, I am privileged to join the debate on the second Budget presented after the historic mandate given by the people.

¶ 02 Within a year, we have taken decisive steps to meet people’s expectations. The 2025 Budget faced the challenge of stabilization and has succeeded: growth in the first half of 2025 was 4.8 per cent; inflation turned positive real terms (disinflation); Treasury bill yields declined, stabilizing the financial sector; the exchange rate stabilized; remittances increased; and anti-corruption efforts improved Sri Lanka’s international standing. Tax revenue has been gradually rising. These are things the previous rulers could not achieve.

¶ 03 Alongside stabilization, social protection and human capital are core goals. Building on the 2025 foundation, the 2026 Budget is crafted with strategic aims: sustainable, broadly shared growth; export diversification to raise incomes; debt sustainability; strengthening a production economy; eradicating rural poverty; and digitalization.

¶ 04 On infrastructure for growth: - Roads: Rs. 342,000 million allocated; Rs. 24,000 million for rural roads; Rs. 2,500 million to reuse old bridge components for rural bridges. - Expressways: Work on the Central Expressway Kadawatha–Mirigama section has resumed; Rs. 66,150 million allocated for 2026 works; Rs. 1,000 million for land acquisition for the Kurunegala–Dambulla expressway. - Road safety: An additional Rs. 1,000 million for a comprehensive road safety programme. - Urban development, flood control, and drinking water: significant allocations. - Irrigation: Rs. 91,700 million; Rs. 8,350 million for rehabilitation of 650 tanks and 350 km of canals and spill systems.

¶ 05 On remittances: recognizing migrant workers’ contribution, concessional housing loans are introduced through the SLBFE Fund.

¶ 06 Importantly, we have presented a progressive Budget without raising taxes, while maintaining fiscal discipline and proper financial management. We aim for full utilization of 2026 allocations and to advance stabilization goals.

¶ 07 Thank you.