Hon. Vijesiri Basnayake

¶ 01 What this shows is the decisive action our National People’s Power Government has taken to restore fiscal discipline. Hon. Deputy Speaker, we have already brought the 2025 growth rate close to 5 percent. Accordingly, this Budget demonstrates the Government’s practical and sustainable vision for fiscal discipline, reforms, and sound revenue–expenditure management.

¶ 02 The Budget presented by the Hon. President yesterday is fundamentally built on six pillars. The first is sustainable and inclusive economic growth. Our strategic aim is to reach, within a few years, a growth rate of 7 percent or above, and to establish a mechanism to ensure the benefits of that growth are fairly shared among our people across the country. In the first six months of 2025, we achieved 4.8 percent growth. Inflation, which had been negative, has now turned positive, and our target is to keep it below 5 percent. The exchange rate has stabilized, and gross official reserves have surpassed USD 6 billion. This clearly shows we are steadily securing our first pillar—sustainable and inclusive growth.

¶ 03 The next major strategic pillar underpinning the 2026 Budget is export diversification. To move forward as a country, we must win in global markets. We have now completed the National Export Development Plan with a focus on diversifying exports. Historically, our exports were concentrated in a few traditional goods, while global markets have transformed substantially. We must cater to those shifts, and that requires product diversification. Without it, we cannot succeed globally.

¶ 04 We will especially move toward IT-based, technology-led exports, and also diversify our markets. While we have relied on a few traditional markets, we are planning to enter new ones. Trade agreements are crucial here. We will revise existing agreements, conclude new ones, and put in place the necessary programmes to achieve our targets. Above all, we must win on export competitiveness.

¶ 05 Hon. Deputy Speaker, we must also integrate into global value chains. The fruits and vegetables grown in our villages, and our other products, must be linked to these chains. We understand we cannot yet manufacture an entire car or a mobile phone, but we can produce components.

¶ 06 The third strategic pillar in our Budget is ensuring debt sustainability. We have already secured significant gains. A dedicated office has been established for public debt management. Sri Lanka’s ratings outlook has improved with agencies such as Fitch, Moody’s, and S&P. This indicates strengthened investor confidence in Sri Lanka.

¶ 07 The next pillar is strengthening the productive economy. Sri Lanka has long been an import-dependent economy, which exposes us to global shocks. The Budget clearly sets out steps to build a production economy, including import substitution where feasible. We will also extend substantial support to microenterprises and SMEs spread across the country.

¶ 08 Hon. Deputy Speaker, by eradicating rural poverty and promoting digitalization, we are ready to implement a major programme—this is elaborated in the Budget. I especially request the Opposition not to spread falsehoods about this. To those media channels that peddle lies and sensationalism, we say: tell the truth to the people of this country. Let us all unite to make Sri Lanka one of the strongest nations in Asia. Thank you.