The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Presiding Member, I reply to the debate on our Ministry’s Head. Many Opposition Members made constructive proposals and critiques. Thank you.

¶ 02 Five Members spoke on sugar; I will not dwell long on it. Our Ministry oversees 28 institutions across 20 sectors. Apart from sugar, there were hardly any criticisms — a positive sign.

¶ 03 Our team works like a family: Deputy Minister Chathuranga Abeysinghe, the Secretary, Additional Secretaries, Chairpersons and Boards. The National Productivity Secretariat is under our Ministry. Yesterday, for the first time in history, Sri Lanka received the Asian Productivity Certification and a National Productivity Master Plan from the Asian Productivity Organization. We can now extend productivity improvements to villages under Hon. Pannilage’s Praja Shakthi too.

¶ 04 Our voted provision is Rs. 5,829.1 million; the President allocated an additional Rs. 1,500 million, totaling Rs. 7,329 million for next year. A further Rs. 80,000 million in concessional credit is available, pooled across ministries, to support start-ups and enterprise expansion without collateral.

¶ 05 On key policy moves: - National Salt Company: Kurunchativu salt — PPP for high-grade export salt; investment calls have been issued. - Kahatagaha Graphite: investor call issued; Project Committee appointed; selections in early 2026. - Paranthan (North): Caustic soda and chlorine production — RFPs to be called early 2026. - Eppawela phosphate: EOI received from 14 investors to produce Single Super Phosphate, reducing costly TSP imports. - Lanka Mineral Sands Ltd.: Cabinet approval (11 Nov 2025) to enhance value addition via PPP.

¶ 06 We are aligning exports with value addition and modern technology. On expenditure management, compared to the first nine months of 2024, we reduced Ministry administrative costs by Rs. 17 million while doing more work; overall admin costs reduced by Rs. 15 million. Physical progress is 78 percent by September; we aim for near 100 percent physical and financial performance by year-end.

¶ 07 Traditional industries: through the National Crafts Council and allied bodies, we have enhanced training and market access. Thirty handloom artisans are in training in Coimbatore with support of the Indian High Commission. We are upgrading industrial estates — Millaniya Phase I completed; allocations for Gampaha; Ingiriya to commence next year. Rs. 318 million has been committed to multiple estates; Rs. 1,575 million to upgrade Valaichchenai.

¶ 08 IDB revenue in the first nine months: Rs. 88 million this year vs. Rs. 73 million last year (first nine months comparison). We are addressing rent arrears, land clearances, and idle plots to improve estate productivity. We plan to integrate NEDA, SEDD, and IDB as peers under a single coordinated authority for greater autonomy and efficiency. I thank NEDA Chairman Lakshman Abeysekara and teams working efficiently.

¶ 09 Results highlights (selected): - New business establishments through clusters: 38 (2024) achieved; additional new clusters formed; expansions increased from 128 to 169. - MSMEs facilitated via trade fairs: 508 (last year) vs. 250 so far this year (continuing). - Crafts Council: trained artisans increased from 850 to 1,272; local promotion programmes from 48 to 118; beneficiary artisans from 42 to 295; registered artisans from 19,677 to 20,869; craft societies from 195 to 211. We reopened the renovated Crafts Museum at the John de Silva Centre.

¶ 10 BMICH exhibition stalls were delayed due to procurement — our allocation was Rs. 6.3 million while bids came at Rs. 13 million; we retendered. We aim for March 2026; artisans have other fairs in the meantime.

¶ 11 Under the National Design Centre led by Sisira Amarabandu: new designs increased from 280 (2024) to 378 (by 30 Sep 2025); new design sources from 190 to 272. Today, at Kandy City Centre, we launched a lacquerware exhibition (“Lankara 2025”) to elevate the sector to international standards, with Laksala and NDC collaborating.

¶ 12 Laksala: sales increased from Rs. 681 million (to 30 Sep 2024) to Rs. 689 million; net profit from Rs. 10 million to Rs. 22 million, despite legacy issues — unpaid VAT since 2017, Rs. 100 million unpaid supplier contracts (2024), and an RDB loan (Rs. 200 million) with Rs. 169 million outstanding since 2012. We are implementing a turnaround plan.

¶ 13 “Salasala” was near closure; now it has earned Rs. 26 million in 2025 with a team of 34. Old debts of Rs. 113 million are being serviced while operating.

¶ 14 National Gem and Jewellery Authority: gem export income rose from Rs. 110 million to Rs. 153 million (segment figures); overall income is down due to global diamond market disruptions from wars (diamonds segment from Rs. 166 million to Rs. 117 million). On jewellery, we are discussing with BOI to establish a gold refining hub in Sri Lanka, instead of Dubai/India, benefiting our top-tier handmade gold craftsmanship. We plan an international gem hub operating 24/7 next year — location under consideration (Port City or Colombo).

¶ 15 We are tackling environmental issues such as destructive backhoe mining in Ratnapura. On rough gems exported “by model” post-auction: no final decision has been taken; only proposals exist. The aim is to legalise what is now smuggled, ensuring national revenue, though some oppose it.

¶ 16 Export Development Board: our annual target is USD 18 billion; by September we achieved USD 13 billion. Our 2030 target is USD 36 billion. With 2025 GDP growth at 7 percent, we will accelerate. In June 2026, Sri Lanka will host an International Expo, targeting over 1,500 foreign investors; after 12 years, we bring Expo back.

¶ 17 Sugar sector: last year, Rs. 1 billion was released from Treasury; Rs. 400 million has been given to cane farmers; Rs. 133 million for crop damage; Rs. 72 million credited so far (Rs. 7,000 per ton). All arrears and statutory payments are provided for in this Budget. Crushing has not reduced: Pelwatte crushes 2,800 MT/day; Sevanagala at 1,200 MT/day pending a cutter replacement to add 900 MT/day — we are procuring.

¶ 18 Sugar outlet pricing: we sell 1 kg packets at Rs. 255. Other outlets sell packets at Rs. 280–350, some at Rs. 380; much of the lower figures cited are for loose sugar, which lacks standards. We could sell loose even cheaper, but we maintain quality and a promotional price. Over nine days we sold around 3,000+ kg daily, about Rs. 800,000 in daily revenue. We plan to introduce a range of cane-based products — jaggery, treacle, and leaf-based products. We know sugar importers are opposed.

¶ 19 Contrary to claims, under the previous government (2023) sugar imports cost USD 408 million (at LKR 334/USD), and USD 219 million in 2022. We want to reduce this bill.

¶ 20 On Hingurana land issues: for the first time, a field survey identified 6,646 hectares and delineated lands belonging to Gal Oya Plantations and to farmers (including uplands). With this data, we can regularise farmer holdings and institutional lands, and proceed without disputes.

¶ 21 Hon. Presiding Member, allow me to conclude with one request in English.

¶ 22 The Ministry has called for investors nationwide to drive industry and entrepreneurship towards an export income of USD 36 billion by 2030. Investments must not be confined to the Western Province; they should reach rural heartlands and urban centres. Young entrepreneurs do not lack ideas but access — often mediated in English. Teaching English to underprivileged youth and entrepreneurs is an investment in human potential, unlocking markets, contracts, funding, and networks. Imagine a rural innovator in herbal cultivation or jewellery who, with English proficiency, can join international workshops, attract investors, and sell globally. Therefore, I appeal to Hon. (Dr.) Harini Amarasuriya, Minister of Education, Higher Education and Vocational Education, to empower a national programme inspiring youth to learn English with passion and purpose, especially for business and entrepreneurship.

¶ 23 I, too, came from a system five decades ago without the privilege to master English well. Instead of mocking the struggle, let us be part of the solution. Let us commit to teach English — not just a language but a lifeline — giving our youth not just words, but a world of opportunities. Thank you very much.