The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Deputy Chairperson of Committees, today is significant. We commemorate the end of three decades of terrorism, honoring the tri-forces who sacrificed their lives. The President is participating in those observances.

¶ 02 An Hon. Member raised issues related to a topic to be debated later. Today, however, we are on amendments to the Inland Revenue Act No. 24 of 2017. Soon, regulations under the Imports and Exports (Control) Act No. 1 of 1969 will be presented for parliamentary approval, including regulations on rice imports. I draw attention to that.

¶ 03 We discuss paddy prices here as needed. As a Government, in the last three seasons we made consecutive purchases. In this season, the Paddy Marketing Board (PMB) has procured 85,000 MT; in the previous season, 50,000 MT; they are in PMB stores. Milling is done through the Cooperative Wholesale Establishment (CWE). Two tenders have called prices from small and medium millers to mill PMB stocks and sell rice via Sathosa, cooperatives and the private sector. In the last three months, around 18,000 MT have been milled, contributing to a decline in market rice prices.

¶ 04 About 85% of our production is white and red Nadu; only about 15% is samba/keerisamba and other varieties. Around 95% of our stocks are red and white Nadu. In the North and East, more red rice is prevalent. Last week, in the Food Security Committee, we took note of these regional issues. PMB currently holds about 135,000 MT. Of that, 30,000 MT have been tendered out to small and medium millers; 18,000 MT already milled. A further 20,000 MT are being tendered for milling and release. This must proceed step by step; tenders awarded are now being implemented, and about 50,000 MT will come out of stores.

¶ 05 As harvesting starts again in the East after June 20, we must empty those stores. Therefore, the Food Security Committee has moved to seek Cabinet approval to mill an additional 45,000 MT and issue paddy to millers. The relevant Cabinet paper has been sent, and once approved, notices will be published and paddy moved. Special attention is being paid to clearing stores in the North, East, Anuradhapura and Ampara, where the next harvest will first arrive. PMB, CWE, and Sathosa are acting in coordination.

¶ 06 Although today’s debate is on Inland Revenue amendments, many spoke about the day’s commemorations. Those who once used the Navy to put pins on sarees, had war heroes working in kitchens, or took Navy platoons to rugby matches now want to lecture us about war heroes. We need not be taught by those whose actions are known to the public. Our forces are now enabled to serve with honor.

¶ 07 On national reconciliation and protecting religions: from the last Budget, we allocated funds, and after 17 years we are building 4,500 houses for people in the North and East displaced by the war — initiated under our Government.

¶ 08 Those who bankrupted the Treasury now talk about tax collection. The very people who stole collected taxes are now facing cases, and when files move and cases are heard, they attack officials as “informants.” We recall a former Minister who avoided CIABOC questioning claiming he had eaten jackfruit, and later the CIABOC Commissioner was transferred as Magistrate to Trincomalee. Those who looted and now face cases are trying to intimidate officials. Our NPP Government committed to punishing the corrupt; we are strengthening laws and will act without hesitation.

¶ 09 Cases are ongoing. Some even formed “private armies” by using tri-force personnel for illegal ends; those responsible now claim to speak for the military.

¶ 10 When we took office in 2024, revenue increased by over 100% by end-2025 without introducing new taxes — by regularizing existing ones and improving compliance. Many who previously did not pay have now opened tax files and started paying, supported by anti-illicit enrichment laws. We are creating an environment where everyone pays.

¶ 11 Today’s crisis is a dollar crisis — rupee depreciation leads to inflation. This is not created by the NPP Government; it is part of the global crisis. The Central Bank Governor explained the rupee’s depreciation and the impact of the Middle East conflict. Even countries with large reserves are affected — the Indian rupee fell 6.4%, Nepal 6.2%, Indonesia 5.2%, Sri Lanka about 4.8%, the Philippine peso 4.7%, the Thai baht about 4%. We temporarily opened vehicle imports last year; about USD 2 billion worth were imported. This year we had to act: for three months, we increased specific duties from 30% to 45% on private passenger vehicles to slow imports, reduce fuel consumption, and protect reserves. We did not increase duties on public transport — buses, lorries, three-wheelers, motorcycles — or small people’s vehicles.

¶ 12 Since November’s cyclone and with the Middle East war since March, we have been paying historically high prices for fuel for two months. Transport, freight, and insurance costs have risen, burdening people. Yet we are providing what relief we can, with the President closely coordinating with the Central Bank, Finance Ministry, and departments to keep the economy moving. We have not taxed raw materials, but some restrictions are necessary given global conditions.

¶ 13 Fuel prices rose globally; a bag of fertilizer rose by Rs. 6,500. While PMB/DOA offer fertilizer at around Rs. 10,200 per bag, market prices are Rs. 17,000–18,000. Road contractors in Anuradhapura are requesting price revisions as tar has increased by around Rs. 20,000 per ton due to the global situation. We must adopt macroeconomic measures to manage these increases while protecting reserves and keeping the economy from sliding further. These amendments help ensure non-payers contribute, strengthening revenue and supporting stabilization. I conclude.

¶ 14 Thank you.