The Hon. (Dr.) M.L.A.M. Hizbullah

¶ 01 Bismillāhir Rahmānir Rahīm.

¶ 02 Hon. Presiding Member, I am pleased to participate in the debate on the motion to adjourn on the Fiscal Strategy Statement. Nearly eight months have passed since the Government led by President Anura Kumara Dissanayake assumed office. We appreciate the new efforts to rebuild the economy and will extend our support. The Government should move swiftly with necessary measures to rebuild the economy.

¶ 03 The present economic situation was not created by the new Government alone; it is the result of mistakes by successive governments and international circumstances. Recently, Sri Lanka has been badly affected by U.S. President Donald Trump’s tariffs. I wish to inform the Prime Minister and several Ministers present: under the new U.S. tariff regime, duties on apparel exported from Sri Lanka to the U.S. have reportedly risen from 5% to 44%. Despite months of engagement, this has not been reduced. Even though the President sent officials, talks have not achieved relief. If this continues, apparel factories here cannot operate; consequences will be severe. Therefore, the Finance Minister—who is also the President—should directly go to the U.S., meet the President, and seek a reduction back to 5%. Many countries obtained relief only after direct leader-to-leader engagement.

¶ 04 I also note a report titled “120 Businesses Auctioned Daily: Sri Lanka’s Economic Collapse Turns Banks Into Liquidation Machines.” It says nearly 120 businesses are auctioned daily. In the past year, about 90,000 small and medium industries have closed. This did not happen only under this Government; closures began earlier, but the effect on the economy is severe. High production costs and U.S. tariffs have badly hurt industries and sectors. Therefore, only direct intervention by the Finance Minister with the U.S. President can resolve this.

¶ 05 During elections you pledged to act in the people’s interest. Under the IMF agreement, from this year local authorities must pay 20% of staff salaries. Large municipal councils like Colombo or Kandy may manage, but rural councils cannot. In Batticaloa District—areas like Vakarai, Kaluwanchikudy, Araiyampathy, Sainthamaruthu—many councils have almost no revenue due to war impacts. If councils must suddenly pay 20% of salaries for 200–300 employees, how? You cannot immediately impose household levies. If this rises by 20% each year, in five years councils must assume full salary burdens—this is unrealistic.

¶ 06 Prime Minister and Minister of Provincial Councils and Local Government, please intervene. Enable councils to generate revenue—build markets, provide shops—before imposing such obligations. Requiring full salary payments within five years under IMF conditions is not acceptable.

¶ 07 Another point: this year’s Budget allocated Rs. 1,416 billion for capital expenditure; but so far only about Rs. 121 billion—less than 10%—has been spent. Only six months remain. Many 2024 Budget proposals are still not fully implemented. Please accelerate disbursements and implementation. We must quickly stabilize the economy. Do not rely only on Central Bank advice; you must also decide and act.

¶ 08 Please also note that when taxes are imposed everywhere, people cannot bear it; hardship worsens. Reports say Sri Lankan entrepreneurs are moving to open factories in other countries, particularly in Africa. This is alarming. Please take appropriate action. Thank you.