Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Mr. Speaker, on the primary surplus: a primary surplus is revenue minus non-interest expenditure. When we assumed office, Sri Lanka faced a severe economic crisis with heavy debt. Hence the debt sustainability programme. Interest payments of about LKR 2,500 billion are due. The primary surplus excludes interest; its benefit is to move toward debt sustainability so we do not borrow to pay interest, which would worsen the debt trap. A higher primary surplus helps reduce net new borrowing for interest.

¶ 02 Under the IMF programme, we aimed to bring central government debt to 95 percent of GDP by 2032. We have already reduced debt from about 104 percent to 96.8 percent of GDP, and plan to reach 86 percent by 2030. Debt sustainability and targeted relief can and must proceed together.

¶ 03 On revenue: In 2025, for the first time, collected revenue exceeded the target by 110 percent due to better compliance, administration and base-broadening—not simply higher rates. Those additional revenues fund the LKR 100 billion supplemental relief for current hardships.

¶ 04 On multilateral funds: IMF/ADB/WB resources are for specified programmes and projects; you cannot borrow and directly finance subsidies. Within programme envelopes, about LKR 240 billion supports social protection; the rest are development projects whose benefits accrue over time.

¶ 05 On vehicles: Purchases rose faster than expected—by end-April 2026 some 178,000 vehicles (including motorcycles, three-wheelers, cars, etc.) had arrived. The temporary import surcharge only seeks to conserve FX over the next three months amid external shocks. We expect to normalise as conditions permit.

¶ 06 On poverty lines: The poverty line reflects minimum basic needs for a single person, derived from recognised statistical methods tied to inflation measures. It is not a claim that a person will enjoy a comfortable life at that level. If methodological refinements are needed, they will be made. Our focus includes reducing rural poverty structurally; this cannot be solved overnight.