The Hon. Namal Rajapaksa, Attorney-at-Law

¶ 01 Hon. Deputy Chairperson, first I wish late Hon. Kosala Nuwan Jayawira eternal peace, and extend condolences to his family.

¶ 02 On VAT and in the current moment of concern over reciprocal tariffs worldwide, Sri Lanka faces significant challenges. Global trade is changing—moving beyond traditional WTO-centered free market orthodoxy toward regional and bilateral arrangements. Our challenge is to protect our businesses and industries without being caught in a global trade war. A 44% U.S. tariff on our exports is one side of the coin; the other is how we balance it. We cannot practically import USD 3 billion from the U.S. to offset deficits. Therefore, we need negotiation—heads of state speaking directly if needed. Many countries, including India and Singapore, began groundwork months ago. Our Government waited until after the U.S. decision to appoint a committee.

¶ 03 Beyond the direct 44% impact on apparel and other exports, there are indirect effects. We earn significant income from logistics and aspire to be a port and maritime services hub. If global trade volumes fall due to a trade war, our ports and services will be hit. The Government must look beyond the 44% headline and prepare for broader macro effects, including on IMF targets set before these tariffs and absent a global trade downturn.

¶ 04 Media report some apparel factories already struggling to pay bonuses. Problems are emerging across sectors. While we will not incite industrial unrest, the Government must show leadership—demonstrate capacity to protect the economy despite U.S. tariffs. If there is to be relief, consider mechanisms around SVAT and other tax administration to protect industry cash flows. Otherwise, investors will shift to countries with lower tariffs and plug-and-play readiness for the U.S. market; jobs will be lost here. Protect employment and incomes.

¶ 05 You also promised to remove VAT on rooftop solar electricity bills during elections—yet we do not see it implemented. That would be a fair relief.

¶ 06 Finally, though not directly on today’s item: some local authority elections have been postponed. If elections are to be held on 6 May, inform clearly which authorities will and will not go to polls.