The Hon. Wasantha Samarasinghe

¶ 01 MOP is already available for two years. There is a shortage of TSP and of urea. The procurement processes to bring them in have been carried out; tenders have been called. Some consignments are arriving. The stocks owned by companies and the Paddy Marketing Board will be allocated proportionately for the coming Yala season. All necessary decisions have been taken. But attempts are being made to create fear about this. I urge the Opposition: let us debate with facts, not falsehoods.

¶ 02 Within the relief package provided by this Government, relief is being granted to the people in distress, and mechanisms have been found to reduce those hardships. His Excellency the President clearly stated that money supply growth will not be increased. While money supply growth can support economic activity, it can also fuel inflation. Therefore, two approaches can help control this: first, to give direct relief to the affected segments; we are providing fuel to fishermen, and increasing the benefit for those receiving harvest support, because we do not believe this war situation will last forever.

¶ 03 Further, to curb price increases and reduce cash outlays, we provide relief to institutions while expanding direct assistance to households, thereby also controlling inflation. The Government is mindful of how the global heat and war situations impact our economy, and decisions are taken with that in view. These are not ad hoc giveaways; they are planned, feasible, necessary and sustainable measures provided to all who need them, with proper procedures. The President has presented the details.

¶ 04 This morning I saw some Opposition MPs speak about the prices of goods. I must respond. Over the past period, we discussed with producers, distributors, and importers about consumer goods. Many of our importers are based in Pettah and Dambulla; we held separate discussions with them and with their associations. We also discussed with milk powder producers and distributors, biscuit producers and distributors, bakery and flour producers and distributors, and cement and steel manufacturers. On the LPG matter, we held separate discussions with the gas companies. On all fronts, the Government engaged with these stakeholders to minimize the burden on the public during the festive season. Yet the Opposition, when talking prices, seems forgetful or simply keeps talking without grounding. That is what they do. Importantly, for food items including biscuits and dairy items including milk powder, there have been no price increases tied to the festive period or the war situation. The same applies to wheat flour for bread. They told us supply is ensured for three months and no price increase would be made now. Prices of future flour imports may rise, and then adjustments may be considered because the dollar could have an impact.

¶ 05 The President stated clearly there is an impact from the dollar, and it is not small. Rising oil prices could impact our reserves by about USD 1.5 billion. If, on one hand, worker remittances decline and, on the other, tourist arrivals decline, the pressure could increase. At present, we do not see a decline in remittances, but we do see fewer tourists. Therefore, it is not proper to use Parliament to spread lies at this time. The world faces a crisis. Ignoring both that global crisis and the Government’s and people’s expectations, the Opposition keeps telling untruths. Our people know the world is in crisis, even if the Opposition pretends otherwise. While managing that crisis, giving relief to people, and managing the economy, the Government is taking the decisions needed to strengthen the economy and move the country forward. That is how we are working.

¶ 06 On coal, the President explained clearly what happened. You cannot go by a photo someone took or a casual remark. On some days, 810 MW of generation is achieved; on other days it is lower. If reduced output is due to coal quality, the contract itself provides agreed deductions. We are acting accordingly. The President explained any potential impact. Some keep repeating this to suggest a backdoor plan to hand the next contract to a former party—no, we cannot. If quantities are exceeded, payments increase. To mitigate shortages, Cabinet has approved procuring a limited quantity—about 300,000 tonnes—through spot tenders to minimize the immediate impact. The Government has taken the necessary decisions as a responsible administration.

¶ 07 Hon. Deputy Speaker, today we also present a proposal to grant a set of incentives to investors. Even in this crisis we can create opportunity, as there is a trend for investors in the Middle East to diversify to other regions. Therefore, proposals are presented to grant tax incentives based on the investment and jobs created in industry, agro-industry, and services. For industrial projects investing USD 50–100 million, USD 100–150 million, USD 150–300 million, and over USD 300 million, we have set out the tax incentives.

¶ 08 These incentives will be granted for six to ten years. For services, incentives for five to ten years. For agro-industry, we need technology and new packaging. If USD 50 million is invested and 50 jobs are created, five years of tax relief can be given; if USD 50–100 million with 100 jobs, eight years; if over USD 100 million with 100 jobs, ten years. We propose incentives for packaging, technology, logistics and other support to the agriculture sector, as we see an emerging trend and opportunity to attract regional investors to countries like ours. That is the context of these measures.

¶ 09 What did the Leader of the Opposition say? He wants the IMF and international organizations to come and meet him. If they wish, they will meet, Hon. Deputy Speaker. Should we tell them to go meet the Opposition? International organizations observe the Opposition’s conduct, process and responsibilities in deciding whether to meet them. We do not need to instruct them to meet you. Governments do not block your meetings with international organizations. If anyone has blocked, tell us who—then we will tell them not to; go and meet, discuss.

¶ 10 What has happened to the Leader of the Opposition and his team now? They are rattled, as the Government is responding appropriately to each issue, intervening as needed, managing the situation, and taking the necessary decisions to take the country and people forward.

¶ 11 I must also respond on prices. We have engaged with the stakeholders and managed this. Given global tensions, there was discussion on prices. Usually during festive seasons prices rise. I have held discussions with importers and producers. There has been a continuing issue with rice—especially Keeri Samba. We examined stocks at both small and large millers. Seizures are being made continuously. Today as well, 40 sellers in Dambulla who sold rice and goods at excessive prices were taken into custody; 40 raids were conducted today. If anyone continues to exploit consumers, we will act. By April, prices have decreased somewhat compared to March.

¶ 12 Lanka Sathosa runs about 430 outlets. We procure through tenders. Comparing last month’s prices with those awarded yesterday: white sugar per kilo was Rs. 212; yesterday it was Rs. 205. Brown sugar was Rs. 237; now Rs. 230. Red lentils were Rs. 272–273; now Rs. 266. Big onions were Rs. 148 last week; yesterday Rs. 126. Red onions are Rs. 230. Imported potatoes were Rs. 187; yesterday Rs. 193—only potatoes are up by Rs. 2–3. Many items have reduced in price, Hon. Deputy Speaker. Dried white onions were Rs. 359; now Rs. 317 in our tender. Thus, a range of items have decreased. Normally, prices rise with higher festive demand. But by discussing with importers, producers, and suppliers, the Government has intervened to prevent increases, hence the market is not overheated today.

¶ 13 On LPG, Hon. Deputy Speaker:

¶ 14 Hon. Minister, your time is up.

¶ 15 I will wind up, Sir. Please allow me 30 seconds, Hon. Deputy Speaker.

¶ 16 We are releasing the blue LPG cylinders to the market. To the company supplying the yellow cylinders, we have officially notified through the Consumer Affairs Authority that if they do not supply gas to the consumer-owned cylinders, we will file action under “deception of the consumer.” Therefore, they cannot continue that conduct. Through Litro Gas, we are releasing cylinders to the market. Our blue cylinder price is Rs. 1,000 less than the yellow cylinder. Using that, we will release enough blue cylinders so that consumers with yellow cylinders can obtain blue ones from the market. Meanwhile, the company that supplied the yellow cylinders remains obligated to fill their consumer-owned cylinders; failure to do so wrongs the consumer, and we will take legal action. The Consumer Affairs Authority is acting on this.

¶ 17 Thus, during this festive season, to ensure consumers can buy goods and services without undue burden, the National People’s Power Government has created the necessary environment and taken the required decisions. The President and the Cabinet are giving the needed leadership. Through these Bills, Orders, and Rules we are stabilizing the economy and taking steps to attract investors.

¶ 18 The relief package given today is being portrayed by the Opposition as fearmongering, but to the people, it is relief. Providing relief is our Government’s responsibility. Fulfilling that, aligning people’s expectations with Government objectives, we are working to take the country forward. I conclude.

¶ 19 Thank you, Hon. Deputy Speaker.