The Hon. (Dr.) Nalinda Jayatissa - Minister

¶ 01 You said earlier that we cannot give you credit because it was already done before. If it had been done before, the local government election should have been held. Why was the local government election due in February 2022 not held? The leader you now praise, former President Ranil Wickremesinghe, said in Parliament and outside that there was no money to hold elections. In which country can one suspend democracy because there is no money? If that logic stood, any leader at any time could say the economy is unstable, the Treasury is empty, and therefore no elections. Remember, the election that should have been held in 2022 was not held until we came in 2024. The leader you admire said then, there is no money to hold the election. That was the country we took over.

¶ 02 Mr. Speaker, on 21 September 2024, what kind of country did President Anura Kumara Dissanayake inherit? He took over a country that had officially declared bankruptcy on 12 April 2022. A country where farmers were helpless without fertilizer; pushed to the brink of collapse; where people died for lack of medicines; where fuel queues stretched endlessly and vehicles stalled; where power was cut; where no heed was paid to providing electricity for A-Level studies. By September 2024 we took charge of such a country. By then we could not service our debt; all rating agencies had downgraded us; the world would not give us visas—athletes, artists, politicians, businesspersons alike. The world suspected that for whatever reason if someone left Sri Lanka, he might not return; our passport had lost its credibility.

¶ 03 You said we cannot be given credit since it was done earlier. If it was done earlier, why did you not conduct the local government election? We came and did what you did not. The then President and Government kept saying each month would be harder than the last. They told the people — the President himself said yesterday — it would take at least ten more years to reach the 2019 economy, dangling the carrot of 2048 and asking people to tighten belts until then. That shattered economy, with its foundations torn, was what the people entrusted to us. I believe, when the people voted to give power to the National People’s Power at the 2024 Presidential and the November Parliamentary elections, many may not have fully believed we could stabilize the economy within a year. They knew your record and thought, “Alright, let’s try and see.” Remember, within that year we achieved stabilization.

¶ 04 Even Hon. Harsha de Silva, in his first speech in this debate, had to acknowledge that we have stabilized the economy. Not only he, but international financial institutions and organizations now accept that we have stabilized the economy. Why? Because of two principal factors: fiscal discipline and public financial management. Without these, no one was going to pay our debts or perform miracles. Within a year, through disciplined public finance and proper financial management, led by the President as Minister of Finance, Head of Cabinet and Head of State, together with officials in a collective effort, we achieved these outcomes.

¶ 05 This is not about playing games in the stock market or conjuring illusions. It is about a year of step-by-step plans, actions and tough decisions.

¶ 06 Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship.” In times of crisis, even small outlays can have huge effects. The Pakistan Institute of Development Economics says, “Fiscal Discipline is the Key to Reforms.”

¶ 07 We achieved results: for perhaps the first time in our history, revenue collection exceeded targets. The Inland Revenue Department, Sri Lanka Customs, the Excise Department and others all surpassed their targets. We lifted government revenue above 15.3 percent of GDP; as the President said yesterday, it may reach 16 percent. We contained expenditure to around 13 percent of GDP. As a result, we secured a primary surplus above 2.3 percent of GDP. We also built reserves to over USD 6 billion, aiming for USD 7 billion soon.

¶ 08 When we declared bankruptcy in 2022, debt stood at about 114 percent of GDP. By 2026 we can bring it below 100 percent — to 96–97 percent — and by 2030 below 90 percent. Ratings are improving; growth is moving towards 4.6–4.8 percent. As the President said, by end 2025 we will regain the 2019 economic level. While stabilizing, we have not neglected relief to the people.

¶ 09 We delivered a basic salary increase for public servants. The first tranche from the March Budget was paid in April; the next tranche will be in January, and the following in July. Based on this basic salary, overtime, special leave and other allowances rose from April.

¶ 10 We are rectifying pension anomalies. For those who retired before 2020, we brought pensions up to the 2018 scale in the March 2025 Budget, then to the 2019 scale now, and in the next Budget to the 2020 scale.

¶ 11 From 1 January 2025 onwards, retirees received a fair pension, and we granted every pensioner an increase of Rs. 3,000 after we took office.

¶ 12 We enhanced Aswesuma benefits: households receiving Rs. 8,500 now receive Rs. 10,000; those receiving Rs. 15,000 now receive Rs. 17,500; and we have reopened applications to include additional eligible households. By November–December we will complete that process.

¶ 13 We provide Rs. 10,000 monthly to about 140,000 persons with disabilities, and for those with disabilities employed in the private sector, the Government pays 50 percent of their salary up to Rs. 15,000 per month for two years. We have allocated Rs. 1,000 million to establish day-care centres for children with conditions like autism (with LRH setting up a treatment centre), plus another Rs. 1,000 million to improve accessibility and sanitation for persons with disabilities.

¶ 14 It was our Government that raised the chronic kidney patient allowance to Rs. 10,000 and the elderly allowance to Rs. 5,000. We gave Rs. 6,000 twice per year to 1.6 million schoolchildren for stationery, and Rs. 3,000 vouchers to about 1.85 million students for shoes. For university students from low-income families with disabilities, we provide Rs. 5,000 per month. We doubled the Mahapola monthly allowance from Rs. 5,000 to Rs. 10,000. We raised the student scholarship to Rs. 9,000, increased the stipend for those in technical colleges by Rs. 2,500, provide Rs. 10,000 to thalassemia patients, and granted estate workers a Rs. 10,000 monthly wage increment. In the private sector, the minimum basic wage was raised from Rs. 21,000 to Rs. 27,000 and will be increased to Rs. 30,000 from January.

¶ 15 On housing, we are providing Rs. 1 million support for low-income housing. In Kalutara District alone, 196 houses are being constructed; 3,700 countrywide this year, likely rising to 4,200. During Hon. Sajith Premadasa’s tenure as Minister, Rs. 600,000 housing support was provided in stages for a 550 sq. ft. house; we now provide Rs. 1 million and hand over completed houses with further assistance. Next year, we plan 10,000 houses, with Rs. 10,200 million allocated. We have allocated Rs. 15,000 million for urban estate housing, particularly around Colombo; Rs. 1,180 million for refurbishing old apartment blocks; about Rs. 5,600 million to address housing for the Malayagam community; and, beyond the Rs. 1,000 million for 1,200 houses for landslide-affected families this year, an additional Rs. 2,000 million, totaling Rs. 3,000 million. For war-displaced in the North and East, 2,500 houses with Rs. 5,000 million allocated. For youth exiting probation homes, we raised the grant from Rs. 1 million to Rs. 2 million to build a house.

¶ 16 Our next step is to secure sustained 7 percent growth quickly. We are attracting FDI with legal reforms, land-use planning, and facilitation mechanisms. In the first eight months, we recorded USD 800 million; by year-end, much more. We are strengthening MSMEs with Rs. 80 billion in loan schemes, including working capital, refinancing and unsecured credit, coupled with digitization, innovation and R&D support.

¶ 17 We will not waste Treasury resources. Strategic public investment will go to infrastructure: complete expressways; allocate Rs. 24 billion for rural roads; develop ports and airports; and enhance power. We are also prioritizing public health: allocating Rs. 200 million now and targeting Rs. 12 billion over three years to establish a dedicated cardiac hospital at the National Hospital, Colombo, to address the high burden of non-communicable and cardiac disease among our working-age population.

¶ 18 This Budget is not mere numbers; it is the economic and political blueprint for the country’s future. I request Opposition Members: we debate for 26 days, then pass the Budget. You have detailed project books by Ministry. These go to District and Divisional Coordinating Committees. As Members, please monitor timely implementation through these committees. Delays double costs; e.g., had Health Ministry projects begun around 2014 been completed on time, costs would have been Rs. 29 billion; today they cost Rs. 58 billion. Timely completion eases the burden on the Treasury.

¶ 19 Finally, there is misinformation that Rs. 12,500 million is allocated to buy vehicles for MPs. That is false. Under Item 32.3 of the Budget, Rs. 12,500 million is allocated for leasing payments to procure essential vehicles and machinery for Government institutions and local authorities (e.g., for health services, postal, Ayurveda, media, Government Press, and local bodies requiring tractors and backhoes). Approximately 2,500–2,700 vehicles are needed across the public service and local authorities. This is not for MPs’ vehicles. Do not misinterpret this line. We are providing resources where needed to implement development projects effectively, including equipping the public service, digitization and training.

¶ 20 We welcome fair, constructive criticism to strengthen stability and build Sri Lanka into a strong economy. Thank you.