Hon. (Dr.) Elayathamby Srinath

¶ 01 Hon. Deputy Speaker, thank you for the opportunity to speak on the second reading of the Value Added Tax (Amendment) Bill.

¶ 02 Amendments have been brought to strengthen the economy. Notably, VAT on employee transport and meal provisions is removed. Stamp-related service VAT and reinsurance-related VAT are also removed. We appreciate these measures.

¶ 03 The Central Bank reports 5% economic growth—encouraging news. Yet, as the saying goes, “when the thatch climbs, the measure slips”—we now face a crisis due to U.S. tariffs on our exports. This is a national problem, not a partisan one. Because we have not diversified sufficiently in markets and products, a shock of this nature raises fears.

¶ 04 A 44% tariff on our exports would create massive competitive challenges. Apparel exports—heavily dependent on the U.S.—will be hit, and people in our regions dependent on that sector will be affected. In Batticaloa District, an apparel factory employs over 5,000 people. What will happen there? Will there be job losses? If opportunities shrink due to lost competitiveness, what are the Government’s contingency plans? We await the Minister’s reply.

¶ 05 Public sector hiring is limited by the Budget, and while we encourage the private sector, a crisis like this raises big questions about how to rebuild the economy. The Opposition has made several proposals. We expect the Government to act responsibly and transparently, and to present clear plans to this House. We also ask for support to SMEs and to broaden multi-product exports.

¶ 06 In Batticaloa, export-oriented initiatives have not advanced significantly. We submitted proposals in various forums, including the Budget, for investment plans to develop local production and exports, but have yet to receive clear responses. The District Development Committee should conduct robust discussions on future projects—what will be implemented, and how to advance district development in the coming decade.

¶ 07 Tourism potential exists—e.g., the beautiful Mandativu island area near Batticaloa city. Through tourism development, jobs can be created. To the Hon. Minister of Justice and National Integration: we opposed, at the DCC, a proposal for a high-security prison on a Batticaloa island. The current prison is in the city center; the proposed island is ideal for tourism. All Members of the DCC resolved to request the Government to reconsider. Please provide a proper solution and do not use that island for high-security purposes.

¶ 08 On MPs’ security: for five months we have requested attention to our security needs, informing the Hon. Speaker, the Minister of Public Security, and authorities by letter. No decision has been communicated; we often receive no substantive reply. We request due attention to our security.

¶ 09 Thank you.