The Hon. Sunil Kumara Gamage - Minister of Youth Affairs and Sports

¶ 01 Hon. Deputy Speaker, we are debating several regulations under the Imports and Exports (Control) Act, No. 1 of 1969. Imports and exports are vital to us.

¶ 02 Let me recall the economy we inherited: deep contraction, vehicle imports fully halted, many imports restricted, and debt servicing suspended. We reversed course: resumed debt service, reopened imports in phases including vehicles, and stabilized the economy. International institutions acknowledge that we stabilized a defaulted economy within the past year.

¶ 03 There is intense focus on the exchange rate moving between Rs. 330–340 and claims that any depreciation equals an economic crisis. Exchange rates reflect demand and supply of foreign currency: import demand (e.g., fuel) and inflows (exports, tourism, remittances). External shocks — wars, oil price spikes — have raised our fuel import bill multiples over recent baselines, increasing dollar demand and pressuring the currency. This is an external factor; it does not, by itself, constitute an economic crisis.

¶ 04 What are crisis markers? Rising unemployment and business closures. Our unemployment rate fell to 3.9% in 2025 (from 4.8% in 2019; 5.5% in 2020; 5.1% in 2021), indicating expanding production and enterprise activity. GDP per capita surpassed US$ 5,000 for the first time; businesses are not collapsing as they did in 2022. Therefore, while we accept an external-sector challenge and are managing it, this is not an economy-wide crisis.

¶ 05 However, we must pursue structural solutions: diversify exports beyond high concentration (e.g., garments ~39% of merchandise exports), expand markets, and upgrade our product basket. Near-term management must be paired with long-term reforms to strengthen the external account.

¶ 06 Thank you.