The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Deputy Chairperson of Committees, I often speak after the Leader of the Opposition. Since last year, he has dreamt of the country collapsing — citing Trump’s tax issues, a possible Middle East war, and even Cyclone Ditwah — predicting factories closing, investors fleeing and people on the streets. He can continue to dream.

¶ 02 But last year, with all those difficulties, Sri Lanka achieved 5 per cent growth. Even with Cyclone Ditwah at the end of last year, we are on a strong growth trajectory and moving to a better year. There is no crisis in the country now. The crisis was in 2022 with twin deficits. Now we have a positive trade balance and a fiscal balance. There is a war in the Middle East, causing an external shock that the Government is ready to manage.

¶ 03 It is unfortunate to see the Opposition trying to reduce investor confidence and create fear among entrepreneurs. Our exporters are resilient. Even in the last two weeks of this war, there has been no drop in tea exports, no auction issues, and no price reductions.

¶ 04 Remittances have not dropped. There is a slight adjustment needed in tourism, but the economy is moving resiliently. Despite queues and limitations, we are ensuring industries receive their required fuel quotas so manufacturing continues.

¶ 05 Regarding today’s Regulations under the Colombo Port City Economic Commission Act, the Port City is a valuable asset with a great opportunity now, as risk is being priced into the Middle East. Six months ago, when we changed tax benefits, the Opposition cried that investments would not come. Out of 245 inquiries, only 13 declined the new tax structure; the rest are moving ahead. Inquiries now amount to US$ 4.6 billion, with about US$ 1.4 billion primary and US$ 600 million secondary investments being attracted.

¶ 06 These Regulations make five adjustments: - Adjust land allocation for common services, including power. - Increase maximum building height from 180m to 240m, without compromising safety. - Reduce minimum retail space to 5 per cent, allowing investor choice and aligning with Colombo’s retail landscape. - A minor correction to open space parameters. - Update the business-classification matrix, adding culture and health as a new category.

¶ 07 We seek a positive trajectory and better facilitation. With the forthcoming Investment Promotion Act, we will clearly define promoted investment categories and tax holidays — extendable up to ten years — clarity that was lacking for a decade.

¶ 08 On the alleged power crisis: there is no such risk. Coal generation is down in the dry season, which is compensated by thermal generation. At the last COPF meeting, officials clearly said there is no possible risk of a power cut. Unfortunately, the Opposition uses aligned media to fabricate that a power cut was predicted. The Ministry of Energy’s additional fuel needs for power are not even 10 per cent of national demand. If coal is short, we use thermal; costs go up, but continuity is our aim.

¶ 09 Through the EDB, BOI and our Ministry, we are engaging every investor and manufacturer, giving confidence and working alongside them. The public understands this and disregards misinformation. Last year, GDP grew 5 per cent; this year we anticipate 6 per cent plus, with more investments and production. January showed higher remittances and exports year-on-year.

¶ 10 On national energy conservation, this is not about stopping, but preserving energy to avoid disruption, with support from individuals and industries.

¶ 11 Exporters and FDIs can reach out to the BOI and EDB. As of yesterday, our Ministry received fuel requirements from 1,900 industries; we analyzed and recommended quotas to the CPC, informing them of designated stations. SMEs can submit requirements via Divisional Secretariats; circulars issue today to work with Grama Niladharis to serve smaller businesses.

¶ 12 Line Ministries — Trade, Fisheries, Agriculture and Foreign Affairs — are supporting sectors. Our priority is continuous fuel and electricity supply, and with the interventions of the relevant Ministers and the Hon. President, we are confident of ensuring continuity. We urge the public to disregard misinformation and false predictions by the Opposition.

¶ 13 Thank you.