The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Presiding Member, I have several points to respond to from many Opposition speakers. A notable feature in this Budget debate is that Hon. Chamara Sampath, former State Minister who usually speaks very passionately, was very calm and courteous today. Only he and I know why: he previously served as State Minister over part of our Ministry, specifically the National Gem and Jewellery Authority. He knows what happened there; so do I.

¶ 02 I will give just one example and table the sworn statement. Lotus International Trade (Pvt) Ltd bid Rs. 140 million in a competitive tender in 2020 for the Heraniyawaka gem pit project—a government revenue-included project. Despite the 2020 tender, the agreement was not executed until 2023; it kept getting extended. Then they wrote to us. I table that letter as well. It says, in essence, that although the agreement did not require ministerial approval, the then Chairman informed them that they must obtain the consent of the then Minister, Hon. Chamara Sampath Dissanayake, and that several times assistance was requested for welfare and other projects in his electoral area. They state they cannot comply with extraneous requests unrelated to the project’s objectives and business ethics, and that consequently the Minister prevented the Chairman from signing the documents. That became the reason for not signing the agreement. This is just one case; there are many such matters.

¶ 03 He also mentioned the Cement Corporation. Ashaa Minerals is already in litigation; I will not detail it here due to pending cases. But the problem stems from similar practices—license processes and irregularities.

¶ 04 He criticised our former Legal Director in Ratnapura, Priyanthi, alleging conflicts. There is no rule preventing two officials from the same institution marrying; inquiries were conducted on complaints, her innocence established, and the Board approved it. The real problem was that issuing mining licenses had become a political gamble. Hon. Nalin Bandara knows how licenses were given in that era. We stopped that racket. But after stopping it we lack sufficient enforcement and legal officers; files are piling up. We have asked for approval to recruit legal officers. Mines, like pharmaceuticals, attract mafia-like business interests; we will grant approvals properly, but will not tolerate abuse.

¶ 05 Hon. Harsha de Silva said our policies do not match theirs—true. That is why we sit on different sides. The people rejected their policies; that is why the National People’s Power is in Government. He hopes we will quickly liberalize and sell SOEs. They had listed BCC for sale. Where is it now? In February, BCC’s turnover was Rs. 1,028 million—even while repaying debt—with just bar soap and coconut oil. These institutions are being turned around with proper appointments.

¶ 06 On the Cement and Salt Corporations: if the Leader of the Opposition were here, I would remind him how the Cement Corporation was sold—via the notorious “twakkkal” transaction—selling even the “Sanstha Cement” brand name. To this day, people recognise that brand. That was a dirt-cheap deal over 5,000 acres. They now ask us to repeat that model. Even tuition fees during his student days were allegedly covered by that institution—such is the history. The remaining institutions survived not because of their economic policy but due to the people’s struggle. However much Hon. Harsha insists, we will not sell them. Instead, we will find a new model: enhance efficiency, keep majority public ownership, and build robust public–private–people co-governance—with a strong public component—because we owe a duty to farmers and to the owners of this land, the people.

¶ 07 On sugar: in 2023, Sri Lanka imported 653,000 metric tons of sugar. At a consumption standard of 128 kg per person per year, domestic consumption would be about 240,000 MT; the rest goes to industry. We spent Rs. 142 billion on these imports. Our effort is to properly utilize about 30,000 hectares across Pelwatte, Sevanagala, Gal Oya, Ethimale, Kantale (now closed) to cut that import bill. Currently we produce only about 10% domestically (brown sugar), but we will diversify, including integrating with tourism and other ventures.

¶ 08 I thank our dedicated staff who work tirelessly—our Boards, Chairpersons, and especially our Ministry Secretary, Ms. Thilaka Jayasundara, a person of deep knowledge and practical experience—along with Additional Secretaries and Directors. We work as an industry family. Our theme: if you spend one rupee, plan to earn one dollar. From schoolchildren upward, if every entrepreneur plans that way, we will take the country forward, revive dead industries, and lift the economy from debt. Even if the Opposition does not join us, the people are with us. Thank you.