The Hon. Waruna Liyanage

¶ 01 Hon. Chairman, thank you for the opportunity. Today’s debate on the Heads of the Ministries of Rural Development, Social Security and Community Empowerment, and of Industry and Entrepreneurship Development is timely.

¶ 02 Many speakers observed that if we can revive the industrial sector, it will greatly strengthen the Government. Recently, the Leader of the Opposition made an important proposal about the PAYE law—if we could suspend its implementation temporarily, it would help. The sector has suffered set-backs due to past decisions, and restarting is hard.

¶ 03 From my Ratnapura District, Nivitigala seat: two garment factories have closed, leaving nearly 4,000 people without daily livelihoods. Women who worked there now cannot afford even shoes for their children. We must revive these industries. Reimposing PAYE by 30 June 2025, as decided, will hinder recovery; suspension would help.

¶ 04 On Ratnapura’s gem industry, historically miners (“Basunnahéla”) were central, but now the backhoe operator has become the “Basunnahé.” Mechanized pits dominate; the share/kuli system has vanished; workers have become mere wage labourers—this is unjust. Moreover, because local rough is scarce, we import gemstones, but now imports are charged 18 percent VAT plus 3 percent SSCL—21 percent in total—where previously gem imports were duty-free under a declared import value (e.g., US$200 order). This taxation endangers small cutters and polishers. Remove these taxes for the sector, and likewise rationalize export levies; otherwise people resort to informal channels.

¶ 05 Also, remittance earners can bring gems without tax; that prior facilitation under N.M. Perera helped bring foreign exchange. Today, gem exports have fallen: in 2025 to date, gems are at US$16.48 million versus US$20.6 million last year; diamonds from US$27.7 million to US$19.8 million. If we are to reach 2027 targets, we must revive the sector.

¶ 06 The National Gem and Jewellery Authority (NGJA) pays massive rent for its building—about LKR 4.5 million per month in 2021–2023; LKR 4.9 million in 2023–2025; and LKR 5.1 million by 30.11.2025—plus taxes. This is wasteful; it should be stopped and a cost-effective arrangement found.

¶ 07 A new regulation allows export of certain rough categories (e.g., “young geuda”, “ottu”) up to maximum 500 grams; previously only cut-and-polished could be exported. If regulated well, fine; but misused, it will harm the domestic cutting sector—most small factories in our district rely on small stones. Another issue: NGJA trained trainees every year, but last year not a single trainee was trained. Please rectify training and enable legal, tax-rational exports so Sri Lanka benefits.

¶ 08 Thank you.