Hon. Harshana Nanayakkara, Attorney-at-Law - Minister of Justice and National Integration

¶ 01 Hon. Deputy Chairperson of Committees, thank you for the opportunity.

¶ 02 I am pleased to speak in my second Budget debate this year; we last met in February. When we assumed office, the country had gas cylinders exploding and stacked on sidewalks, queues for fuel, food, and medicines, and a bankrupt economy. Despite a broken and resource-starved State machinery, we have achieved tangible progress within a short period. The country has exited bankruptcy conditions; ratings are being upgraded. Some still say “nothing has been done”—let me respond from my own subject.

¶ 03 Economic development requires ending corruption. We have introduced the necessary laws to restore investor confidence. We have ended the old culture of political impunity and established the rule of law. Ask senior police and public officials today whether ministers or MPs call and pressure them—the answer is no. That enabling environment underpins progress.

¶ 04 We amended the National Audit Act to strengthen oversight, impose penalties on officials who fail in their fiduciary duties, and improve State asset management. We also introduced the law on recovery of proceeds of crime and established a dedicated Police unit under a Deputy Inspector General to operationalize it. These are among our first steps.

¶ 05 We also addressed the roots of the crisis—borrowings not yielding returns, theft, and corruption—and had to lift the country from collapse. We brought an Interim Budget after assuming office in November, when major spending is not typical, and a full Budget in March, leaving only seven to eight months for implementation. Even so, consider these data:

¶ 06 - GDP growth: 4.6 percent in H1 2024 rose to 4.8 percent in 2025. - Unemployment: 4.5 percent in Q1 2024 fell to 3.8 percent in Q1 2025. - Merchandise exports (first nine months): from USD 8.5 billion in 2024 to USD 9.1 billion in 2025. - Worker remittances (first nine months): from USD 4.8 billion to USD 5.8 billion. - Tourism earnings (first nine months): from USD 2.3 billion to USD 2.5 billion. - Revenue plus grants: from Rs. 2.9 trillion to Rs. 3.8 trillion—exceeding targets. - Primary balance: from Rs. 0.8 trillion to Rs. 1.5 trillion—again beating targets.

¶ 07 This was enabled by fiscal discipline and evidence-based management under President Anura Dissanayake’s leadership.

¶ 08 On public debt service fears for 2028, the President clarified in his Budget Speech (p. 6): in 2024 we paid USD 1,674 million for external debt service; in 2025, USD 2,435 million is due, of which USD 1,948 million was paid by September 30, with USD 487 million to be paid by December 31—USD 761 million higher than 2024. For 2028, about USD 3,259 million is due—only USD 824 million more than 2025—and we can meet it. “In 2028, it is we who will be in office, and we who will pay,” the President reminded us.

¶ 09 We are pursuing rural poverty reduction, digitalization, and tourism expansion—targeting USD 8 billion in earnings and four million arrivals by 2030. We are building an inclusive economy—leaving no marginalized community behind. For children with disabilities from low-income families, we propose a monthly allowance of Rs. 5,000 per child based on medical recommendation (Rs. 50 million allocation). Through the Aswasuma programme, Rs. 10,000 each will be provided to about 140,000 persons with disabilities (Rs. 19,000 million allocated). A further Rs. 1,000 million is proposed to improve accessibility and sanitation at public facilities—Divisional Secretariats, railway stations, bus stands, courts, police stations—for persons with disabilities.

¶ 10 Health is a right, not a charity. We propose to commence establishing a 16-storey National Cardiac Unit with modern facilities at an estimated cost of Rs. 12,000 million, starting with Rs. 200 million for initial works. About 40 percent of deaths are due to heart disease; current capacity is insufficient, and patients wait unacceptably long.

¶ 11 We also support labour. Estate workers now earning Rs. 1,350 daily will receive an increase to Rs. 1,550, with Rs. 200 from companies and Rs. 200 from the Government as an attendance incentive; Rs. 5,000 million is allocated. These communities were long treated merely as vote banks; we are empowering them.

¶ 12 On housing, we aim to construct 70,000 houses in the medium term, starting with 10,000 in 2026—adding Rs. 3,000 million to the already allocated Rs. 7,200 million.

¶ 13 Regarding vehicles: the Rs. 12,500 million allocation in paragraph 32.3 of the Budget is for vehicles for State institutions and machinery for local authorities—not for MPs. Of 2,700 vehicles, 1,775 are cabs under tender for government agencies; an additional 700 comprise tractors, bowsers, compactors for local bodies; only 225 vehicles are for MPs, including the Opposition. No permits are being issued, as the President has stated. Media should not mislead the public—we do not steal public funds.

¶ 14 This Budget balances humanity and the economy. Economies exist to serve people, and this Budget embeds the necessary social protection to prevent the poor from falling further into hardship. It is a sound Budget that can take the country forward. I ask the Opposition to support it. Thank you.