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

¶ 01 Hon. Deputy Speaker, some read a lot and then get excited and confused. A previous speaker tried to recast our long-term policy statement as a first-year Budget. We presented a policy framework for 52 years, with a 20-year vision, to transform Sri Lanka from the failure of past neoliberalism into a productive, inclusive economy. Annual Budgets operate within yearly fiscal limits while delivering five-year promises.

¶ 02 With pride and humility, I say: we restored financial stability — the foundation for growth. For the first time in decades, Sri Lanka met all its fiscal and macro targets — even the Opposition tacitly concedes this, having never achieved it themselves. As Hon. (Dr.) Nalinda Jayatissa said, this was achieved by discipline, focus and teamwork, adhering to Finance Ministry targets.

¶ 03 We are moving from stability to growth: targeting 7 percent GDP growth and debt sustainability by 2030. Investors need predictability — stable variables, consistent directions and structures — which this Budget brings.

¶ 04 For the first time, all macro requirements were met in 2025 because a disciplined, competent team managed the economy — a hallmark of the National People’s Power. No previous Opposition figure, however credentialed, ever achieved this.

¶ 05 We are transitioning to a production economy. When we say 7 percent growth, some IMF-aligned experts who insisted on 3.5 percent now speak of 7–9 percent. The previous policy volatility deterred investors; now we provide predictability. This Budget also delivers major tax reforms and a credible debt path to reduce debt-to-GDP to 87–90 percent by 2030.

¶ 06 To those saying “nothing happened in 2025,” consider: export volumes grew about 7 percent; industrial output about 9 percent; private-sector credit by 22 percent — used for investment, not consumption. Previously, the Government crowded out markets; now Government is repaying and not crowding out.

¶ 07 Tourism expanded; IT grew 15 percent. FDIs of USD 800 million have come in eight months, with investor confidence restored. We have USD 829 million to BOI and USD 1.28 billion committed to Port City; Sinopec negotiations near conclusion with USD 3.78 billion. 2025 will be Sri Lanka’s highest FDI year, potentially USD 5.9 billion.

¶ 08 The CBSL Purchasing Managers’ Index shows Construction at 67 and Manufacturing at 55, reflecting strong activity. We also intervened for MSMEs in debt distress — negotiating with banks to restructure loans for about 200 out of 300 distressed firms in a district sample, with interest reductions up to 50–65 percent in some cases.

¶ 09 The Opposition previously failed to implement: tiered tax policy; a land bank; PPP legislation; investment protection law; a National Single Window; the SOE Management Bill; Rs. 80 billion in credit lines; a venture capital fund for SMEs; an IT startup ecosystem. We are doing these now. We are also advancing tourism and renewable energy. Contrary to claims, we are enabling renewables with proper environmental feasibility, site selection and streamlined approvals, now attracting multiple investors.

¶ 10 Digitization began in earnest in 2025 and will support industry and the wider economy. In agriculture, we will finally build value chains, cooperatives and distribution networks that were neglected for decades.

¶ 11 On logistics, Sri Lanka ranks 73rd in the Logistics Performance Index — a legacy of 76 years. This Budget addresses port logistics centres, airport upgrades, Customs modernization, and public transport. We will strengthen the public service for efficient administration; address disability inclusion; human–elephant conflict; housing; and local waste management — long-ignored fields that people now demand we fix.

¶ 12 Our strategy is to raise resource productivity — of land, farms and industry — with major investment; and to improve state-sector efficiency, reflected in the Ease of Doing Business ranking we inherited (around 99th), which we aim to improve. The Opposition failed to diversify products and markets — we will.

¶ 13 FDI needs stability, policy consistency, a land bank and protection — our plan resolves these. We will restructure SOEs methodically, retain state stakes, ensure social obligations, and legislate governance. We will improve access to capital through the banking sector and an advanced capital allowance. For SMEs, we reduce the monthly capital threshold from USD 3 million to USD 250,000 to spur investment. Education reform and industrial skills pipelines are being advanced. The tax base has been too narrow since 1990; past macro mismanagement forced ISBs. We will correct that.

¶ 14 “Neoliberalism” means the state exits markets — that is what you pursued. We have stopped that. The state will hold strong stakes where essential; commercial ventures will go to a holding company; strategic ventures will remain with the state. Research institutions are quantifying the cost of corruption. Our goal is a developed country with a genuine level playing field — economic democracy where everyone gets a fair chance to contribute.

¶ 15 We ask the Opposition to support this long-term transformation over 20–30 years. Thank you.