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

¶ 01 Thank you, Hon. Presiding Member.

¶ 02 We saw someone earlier, wielding a big book of falsehoods, trying to peddle yet another lie. For years they ruined the State sector, undermined energy security, and damaged the Ceylon Petroleum Corporation; today they cry “crisis, crisis.”

¶ 03 For 40 days the world has faced a crisis and war threatening all. We have managed this threat and the possible crisis. In these 40 days, did a single factory close for a day? Did any worker lose a job or have to stay home? No. We managed this with precision—on the technical side of the State, and on uninterrupted energy supply—so the economy continued smoothly. Not a single day of power cuts; not a single industry shut. This is economic management. The President has made clear that from April to June there will be no power issue. Wishing for collapses or blackouts will not make them happen.

¶ 04 By 2025 we had built a strong economy—a reserves buffer of USD 7.3 billion, even after settling USD 3.9 billion in debt and allowing USD 1.8 billion for vehicle imports. Exports and remittances up to March remained intact; no economic damage. The Treasury has an excess of around Rs. 900 billion, enabling today’s announced reliefs.

¶ 05 Some self-styled economic experts cannot digest this. Today’s Orders further strengthen the economy. They could not collect taxes; we are expanding the tax base by revising VAT and SSCL thresholds from Rs. 60 million to Rs. 36 million—broadening the base and reducing evasion. Through QR-based payments we formalize the informal economy—things others could not do for a decade.

¶ 06 We also changed the Social Security Contribution Levy collection on imports so it is levied at import rather than at sale, creating a level playing field with domestic assemblers who pay at production.

¶ 07 To Hon. Kabir Hashim’s point: this is not the old BOI regime—we reformed it last year. We implemented a transparent, rule-based incentive framework publicly stating, by sector and investment size, the relief available. No more backroom deals in Ministry rooms. Many investors who fled then are now returning.

¶ 08 Investors no longer need to meet the President or Minister; they know their sector and expected incentive. They submit via BOI; the Ministry of Finance assesses feasibility and national benefit, and grants incentives transparently.

¶ 09 Soon the PPP Bill—now gazetted—will enable State–private collaboration. We have defined 6–10 year incentive windows for services and infrastructure, and 5–10 years for manufacturing, with special clarity for technology and agriculture-related sectors. Through BOI and Port City frameworks, investors see how to enter Sri Lanka.

¶ 10 Claims that there are no incentives for domestic manufacturers are false. We have an enhanced capital allowance: for investments from USD 250,000 (about Rs. 75 million), full capital cost can be deducted from profits from year one. Domestic firms can obtain BOI status and enjoy the same facilities—many have done so, including via TIEP, and progressed to BOI. Incentives are level by investment, not nationality.

¶ 11 On energy: those who tried to privatize generation and carve up hydropower and thermal would have left us unable to manage today. Saving the CEB and CPC has enabled today’s stability. State enterprises allow delivering public relief.

¶ 12 We are issuing dollar bonds again with stronger demand—exporters can now invest up to 10% of their forex inflows into Central Bank dollar bonds, creating a new avenue.

¶ 13 Last year we achieved 5% growth. Despite global slowdown, we are confident of surpassing 5% again. Our export mix sources inputs from East Asia and sells to the West; tea exports to the Middle East are rising, not falling. We see no major threat ahead.

¶ 14 Thank you.