The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Deputy Speaker, I am pleased to join today’s debate on regulations brought under the Public Debt Management Act, a regulation under the Foreign Exchange Act, and the establishment of the Gambling Regulatory Authority.

¶ 02 The Opposition spoke at length and then left the Chamber. They will listen online—perhaps even from inside here. They like to talk about court cases now that we have moved against corruption; don’t ask us about their “investments” that end up as lawsuits.

¶ 03 They asked about fertilizer and paddy. For the House’s information: the President has appointed a Committee on Food Security comprising ten Ministry Secretaries, co-chaired by me and the Minister of Agriculture, meeting fortnightly to take decisions.

¶ 04 For the last Maha season, there was a shortfall in funds for fertilizer subsidy. We found the money and paid Rs. 4 billion. For Yala, we have already paid Rs. 13,189 million for 528,000 hectares. We also committed to pay for additional crop areas; to date, we have paid Rs. 149 million for 28,000 hectares. In total, around Rs. 13.8 billion has been paid for fertilizer subsidies.

¶ 05 On paddy: the Yala harvest is underway. In several northern districts, 60–80 percent of harvesting is complete. The largest paddy harvests are from Anuradhapura, then Ampara, then Polonnaruwa. This season we cultivated about 537,000 hectares, and about 45 percent has been harvested so far—over one million metric tons already.

¶ 06 Regarding government paddy purchases: historically, the Government has not always intervened. In the past, Paddy Marketing Board purchases ended up as animal feed—friends hauled stocks to the dump. We ended that game. Sathosa outlets were closed in those days; the oldest cooperative wholesale establishment in Sri Lanka was shut; 56 lorries were sold off cheaply—now under complaint. We have revived the cooperative wholesale network. During Maha, the PMB and Sathosa commenced procurement; in Yala, we began milling Maha stocks and, from yesterday, we are issuing “Sathosa”-branded rice to the market. We do not send to the dump; we pass benefits to consumers.

¶ 07 We have created a structured mechanism for paddy procurement. We are providing working capital loans to small and medium millers and to large millers, via state and private banks. Under the working capital facility, we have already disbursed Rs. 4,971 million to SMEs, and Rs. 15,000 million is being provided across state and private sectors to all millers. Additionally, the Government has allocated Rs. 5,000 million to Sathosa and Rs. 10,000 million to the PMB for paddy/rice procurement. Do not worry—we are buying paddy.

¶ 08 We inherited a bankrupt country where even the largest state bank could not open an LC. Step by step, we are moving to a sustainable era and taking the necessary decisions. This year, in the first six months, we are investing Rs. 140 billion in capital/development projects; after the May 6 provincial elections, we accelerated development to prepare for monsoons—repairing tanks, bunds, and roads. Our challenge is a shortage of technical officers. We are not throwing out current staff, but we must recruit where needed—technical and senior officers. In my Ministry’s agencies there are vacancies across the board. For the first time in 52 years, we will recruit 62,000 to the public service, including graduates—by revising the age thresholds. We have restored public servant salaries that were stagnant for years; rectified pension anomalies; raised the private sector minimum wage to Rs. 30,000; and the Government is intervening to secure Rs. 1,700 wage for estate workers.

¶ 09 When we regulate and formalize the economy, those who played games find it difficult. We are bringing in regulations where previously Ministers, MPs, and their friends controlled ‘regulation’ informally. We will stop that.

¶ 10 On gambling regulation: 90 to 130 countries worldwide have laws and authorities regulating gambling. Some Muslim-majority countries prohibit gambling entirely due to religion and culture. In Sri Lanka, gambling exists in varied forms. We aim to eliminate illegal gambling and bring order. We know about front-door/back-door casino practices. We are bringing an authority to regulate, license, monitor, and enforce. Those who asked why past taxes weren’t collected—previous Governments had ample time but didn’t act.

¶ 11 In lotteries, when someone wins, taxes are withheld at source; not so with gambling. No one declares gambling winnings; hence there is no tax. We will change that. Winners must pay tax on gambling winnings, just like lottery winners. The authority will ensure operators keep records of entries, cash flows, and payouts, and will have powers to audit and enforce.

¶ 12 Questions were asked about cruise ships with onboard casinos. Such matters will be decided by the Authority—whether to permit operations at our ports/coast, and under what conditions. Previously, politicians allowed such things arbitrarily. Going forward, competent officials under the Authority, accountable for their decisions, will handle licensing, renewals, and cancellations.

¶ 13 Strong, transparent laws signal to the world that Sri Lanka is governed by rules. We are improving tourism and inviting investors. Some hoteliers don’t want casinos; others seek destinations where casinos exist for leisure travel. Either way, we need clear, independent regulation.

¶ 14 To those who shout from the sidelines: we are not deterred. We are undertaking policy decisions to rebuild the country, including on cannabis and casinos where appropriate and regulated. We stand by what we say and will deliver under the NPP Government.