The Hon. Ravi Karunanayake

¶ 01 Hon. Presiding Member, I wish the Hon. Deputy Minister of Finance were here; his morning answer contradicted facts. We debate three items; one is the Public Debt Management Act regulations. Debt management is moving from the Central Bank to the Ministry of Finance from 26 January 2026, currently under observation.

¶ 02 Key concern raised at the Committee on Public Finance: staffing. The Finance Ministry lacks approval to recruit competent CFAs and other professionals required for the new Debt Office. Without top talent, PDMA functions will suffer. This matters for technical assessments under the PDMA and Fiscal Management (Responsibility) Act: loan viability, ability to repay, and a national balance sheet approach. After the April 2022 bankruptcy, the Ranil Wickremesinghe Government embedded necessary protections in law. Now we must resource the office properly.

¶ 03 On institutions like RDA: if risk premia are added under PDMA vetting, concessional loans (e.g., ADB at 3–4%) can become costly, challenging viability. Cost‑benefit analysis is essential.

¶ 04 SriLankan Airlines faces similar issues. Rs. 20 billion for interest service was inadequate. Overall debt sustainability must be addressed; IMF insists on commercialization. Absent policy clarity, the fifth review in September could be affected.

¶ 05 From April 2028, debt service resumes. We need a robust economy to meet revenue targets. On “money printing”: it is sometimes necessary to avoid contraction, but must support supply‑side activity, not recurrent spending. Data from Oct 2024 to Aug 2025 indicate roughly Rs. 1.11 trillion in liquidity creation. Where is it directed? Outcomes matter.

¶ 06 Debt rose from Rs. 17.595 trillion (Sep 2024) to Rs. 30 trillion. Reserves moved from US$ 5.9 billion (Sep 2024) to US$ 6.08 billion (Jul 2025)—a net US$ 180 million increase in 11 months, despite claims of large interventions. For sustainability, we need about US$ 250 million monthly reserve accretion—US$ 7.2–7.3 billion by year‑end—so adding US$ 1.1 billion in the next few months is a question.

¶ 07 On the casino industry: bringing the Gambling Regulatory Authority Bill is welcome and long awaited. But laws must be operable. How will funds enter—cash only, or modern payment rails? How will sources be taxed? If winners cannot repatriate winnings smoothly, it damages our image. Beyond cash, we need modern technology, practical record‑keeping (not every micro transaction manually), and clarity.

¶ 08 Digital gambling’s scope is vast; definitions like “gambling software” are vague and must be tightened by professionals. Rules of gambling, lists, stake limits, and junket operations require clear, practical articulation. We must legislate for practical implementation, not theory, especially given tourism’s stake.

¶ 09 Thank you.