The Hon. (Dr.) Harshana Suriyapperuma

¶ 01 Apologies; I will correct that.

¶ 02 Extending these benefits supports a tourism sector that has been battered. Past airport construction projects were infamous not for tourism uplift but for other nefarious activities, contributing to bankruptcy. Also, though fees are charged via airline tickets and airlines should remit them, there is no adequate legal recourse if an airline fails to remit. We will strengthen legal provisions to secure government revenue.

¶ 03 Further, the fee is not charged for children under five, airline crew, or transit passengers under 24 hours. Tourism’s impact extends beyond fees—to employment and economic activity across the country. The Budget supports promotion of both traditional and new destinations, ensuring benefits flow nationwide.

¶ 04 Regionally, Sri Lanka must compete with other destinations. The online visa system had been stalled despite court orders, reflecting a lawless period. The present Government restored the online visa facility immediately upon assumption of office, underscoring efficiency and respect for law.

¶ 05 We must also revive projects. JICA support to Bandaranaike International Airport had stalled due to corruption, prompting even the then Japanese Ambassador to complain. With the present Government, Japan has re-engaged to restart projects. However, cost escalation—the cost of corruption—now burdens us: not only monetary, but lost opportunities and reputational damage. We are determined to follow due process and transparency.

¶ 06 The second Gazette, No. 2421/41, concerns Luxury Tax on vehicles. Previously, thresholds were Rs. 3.5 million (petrol/diesel) and Rs. 4 million and Rs. 6 million for other categories. After five years without imports, currency depreciation and price escalation necessitate adjustments. Though revenue-negative, to make vehicles relatively more affordable, we propose: - Raise the petrol/diesel threshold from Rs. 3.5 million to Rs. 5 million; - For the next category, add Rs. 1.5 million relief, raising the threshold from Rs. 4 million to Rs. 5.5 million; - Keep the Rs. 6 million threshold unchanged for the highest slab.

¶ 07 This supports economic activity—exports, tourism, manufacturing—and investment, creating employment and aligning with the nearly Rs. 1.3 trillion capital allocation this year. According to BOI, Q1 2025 FDI realized is about USD 197 million; we expect improvement ahead. Tourism arrivals are projected at around 3 million this year, with nearly 1 million so far, and about USD 4 billion in revenue expected, with about USD 900 million already recorded.

¶ 08 These Gazettes were issued and presented in a timely manner, demonstrating adherence to due process.