The Hon. Sajith Premadasa - Leader of the Opposition

¶ 01 Hon. Chairman, it was said that the Opposition’s arguments and logic are hard to find—even those seated on either side of the Prime Minister could not grasp them. Let me clarify some “logic.”

¶ 02 What is the logic of promising, during the election, permanent appointments in the teacher service for 16,600 teacher instructors, and after winning, not delivering? Likewise, your manifesto “A Prosperous Country – A Beautiful Life” on page 105 promises to change the IMF Debt Sustainability Analysis. You took votes on that pledge; after winning, why not deliver? On page 72, you promised 35,000 jobs for unemployed graduates—20,000 to the teaching profession; 3,000 STEM graduates; 9,000 non-STEM to IT; and 3,000 to Inland Revenue, Customs, Foreign Service, and Tourism. Why were these not delivered?

¶ 03 Today is His Eminence Malcolm Cardinal Ranjith’s birthday. We wish him long life and strength. He was promised that the masterminds of the Easter Sunday attacks would be brought to justice, and the nation voted on that promise. Were those masterminds brought to justice, as pledged to him and to the people? If not, what is the logic?

¶ 04 We must focus Parliament’s time on burning public issues. MSMEs contribute over 52 percent to GDP; around 1.1 million entities support 4.5 million jobs. Between 2020–2022, about 263,000 enterprises shut down (Department of Census and Statistics). Between 2023–2025, an estimated additional 150,000 closures occurred. While the sovereign halted debt service during bankruptcy, MSME loans received no restructuring; since April 2025, banks have been enforcing security and parate executions. That is grossly unfair.

¶ 05 Parate sales were suspended during election periods by both past and present governments, which is good; but there was no accompanying restructuring, interest relief, or moratoria. Around 60 percent of MSME loans are non-performing. In 2024, there was no effective restructuring framework; from April 2025, parate auctions proceed. The Industry Ministry’s 2024 program to give Rs. 5 million per distressed MSME reached only 28 beneficiaries; most of the Rs. 1 billion allocation reverted to the Treasury due to harsh conditions. For 2026, Rs. 50 million per borrower is proposed—commendable—but the mechanism for the 60 percent NPL group is undefined. The ADB provided US$100 million; US$50 million went to a National Credit Guarantee program, but implementation is lacking, and the remaining US$50 million through banks has not effectively reached the truly distressed.

¶ 06 Further, the VAT registration threshold is reduced from Rs. 60 million to Rs. 36 million annual turnover, pulling more MSMEs into VAT, which raises retail prices and depresses purchasing power, hurting both consumers and MSMEs. The government often consults MSMEs during election seasons; I urge you to address their pain now.

¶ 07 On pensioners: many promises were made; proper, sustainable implementation is lacking. We hear of contributory pensions; the Social Security Board already runs schemes, but there is no coherent national, sustainable pension program. Implement one. You also promised 15 percent interest on senior citizens’ savings—formerly up to Rs. 1.5 million, now reduced to Rs. 1 million and with lower rates—while seniors struggle to afford medicines and essentials. The National Pay Commission should act, not delay. Between 2016–2020, about 125,000 suffered anomalies in pensions; the then government did not grant due benefits. Please grant arrears. From 2020–2025, about 150,000 new retirees received no increases—grant them too.

¶ 08 On the day the President presented the Budget, we saw retired teachers and principals protesting at Polduwa. This affects about 85,000. The 1997 B.C. Perera Commission awarded a 60 percent general increase, but teachers and principals were told that specific scales would be notified later. The Subodhani Committee later decided to phase 60 percent in three tranches starting January 2022, granting 20 percent first—but only to active teachers/principals, not to those retired up to 31 December 2021. In the Budget speech the President told them to go home instead of protesting; elsewhere, they were disparaged as unable to send an SMS. During COVID, teachers and principals held the education system together. Is this fair?

¶ 09 Hon. Leader of the Opposition, you have two minutes left from the time allotted to you.

¶ 10 It is okay, Sir, I can have some more time.