The Hon. Rohitha Abeygunawardhana
Rohitha Abeygunawardhana said the first NPP Budget’s impact would only be clear after implementation, and urged the Government to provide transparent details on the promised phased public-sector salary increases and not reverse them after elections. He warned that the projected Rs. 325 billion salary cost could rise with new recruitment and said revenue targets from excise, customs, inland revenue, exports, and tourism must be managed carefully to avoid future tax increases. He also called for revising vehicle import tax structures to reduce burdens on small cars while taxing luxury vehicles more, and urged the Government to protect both farmers and consumers through fair paddy prices, limits on routine rice imports, and action against exploitative milling and harvesting practices.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Speaker, I am pleased to join the Second Reading debate of the inaugural NPP Government Budget, my 25th consecutive Budget debate in Parliament.
¶ 02 We will only truly know the strengths and weaknesses of this Budget when it is implemented. This Budget runs for nine months—from 1 April to 31 December—unlike typical annual Budgets. Its real effects will be known by year-end.
¶ 03 Public servants—about 1.6 million—voted for this Government with high expectations. The Budget clearly states salary increases over 2025, 2026, and 2027—three phases—ultimately totaling 100%. It indicates 30% in 2025, 30% in 2026, and 40% in 2027, costing Rs. 325 billion by 2027 for public sector salaries.
¶ 04 As a senior MP, I welcome pay rises; with current living costs, many can’t make ends meet. But clarity is lacking: even today, when I asked police officers and office staff here what exactly their increase will be, they did not know. Teachers and principals also don’t know. They will only realize after receiving their April pay. We must clarify: by how much will doctors, teachers, administrative officers, and military officers’ salaries increase? The Government must ensure the increases promised are delivered transparently.
¶ 05 I also advise in good faith: do not break promises. We all know in village weddings, grand dowry promises are made but sometimes not delivered after the homecoming. Public servants supported the NPP in expectation of “dowry” (promised benefits). The presidential and parliamentary elections are done; local polls are next. If results are unfavourable, do not rescind the dowry. Do not disappoint public servants.
¶ 06 Hon. Minister Wasantha Samarasinghe: please ensure promises are kept. Also, consider that Rs. 325 billion may be an underestimate if 30,000 more join public service this year and next; costs could be higher.
¶ 07 Revenue must be found to finance these expenditures. We need collections from excise, customs, inland revenue, exports and tourism. Historically, targets in Budget books were rarely met. Be cautious: salary hikes and other pledges are now carved in stone—you cannot reverse them. If revenue lags, taxes may have to be raised later, despite the current stance. Manage carefully.
¶ 08 On vehicle imports: with reopening, small-engine vehicles like 660cc Wagon R may cost over Rs. 8 million; Vitz around Rs. 9 million; Yaris around Rs. 10 million; Vezel Rs. 18–19 million. Meanwhile, luxury vehicles like V8s and Prado 150s may become relatively cheaper due to tax design. Revisit import tax structures so that small cars used by ordinary people carry lower taxes, while high-end vehicles bear higher rates. The President also mentioned auctioning large state vehicles after new imports arrive, but by then auction prices may fall due to vehicle ages (12–15 years). Review this too to protect ordinary buyers.
¶ 09 On farmers: they make and break governments. In 2006, when Mavil Aru waters were closed, it hurt all farmers—Sinhala and Tamil—and contributed to the downfall of the LTTE. In our own recent history, the overnight ban on chemical fertilizer ruined farmers and toppled a government. Listen to farmers. Don’t coerce them—engage them, protect paddy guaranteed prices, but simultaneously safeguard consumers. We eat rice three times a day; avoid creating an import-dependent rice mafia by allowing routine imports. Fix structural issues like exploitative practices in paddy milling and harvesting charges without alienating farmers; otherwise backlash is inevitable.
¶ 10 Thank you, Hon. Deputy Speaker. I will conclude briefly. Minister Samarasinghe, please protect consumers while ensuring fair guaranteed prices for farmers. Do not normalize rice imports; mafias will exploit it.
Provenance
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- Hansard, Friday, 21 February 2025 ·No. 1740809173064396 ·English daily/uncorrected Hansard
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Cite as: The Hon. Rohitha Abeygunawardhana. 10th Parliament, Parliament of Sri Lanka. Hansard, 21 February 2025. No. 1740809173064396. Politick, https://staging.politick.io/lk/speeches/3698