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

¶ 01 Hon. Presiding Member, today’s debate is timely as we discuss how to keep our economy stable amid a global geopolitical and war-like situation, the challenges we face, and what we must do next. Last Monday, the Cabinet decided to cancel the Wednesday holiday and resume work. We must use every day well. Through Parliament, we explain to the nation the changes and government actions. The Opposition is trying to do its duty, but also spreading falsehoods.

¶ 02 Yesterday, the President briefed Parliament on how the Middle East conflict has affected our economy and the decisions taken to manage it. Hon. Upali Pannilage also spoke. The President candidly addressed the nation here. Some say people write books—fine; when some have nothing to do, they write books. Even when our bond market was in turmoil, some wrote books.

¶ 03 When the National People’s Power government took office in 2024, where was the economy? Who drove it there? From 10 April 2022, Sri Lanka was declared bankrupt; vehicle imports were stopped; even private firms were asked to fetch dollars for fuel; public recruitment was halted; salary increases stopped; and the private sector abandoned. Instead of management, the whole country was bankrupted.

¶ 04 Within the past year we have rebuilt. When the President presented the 2025 Budget, the revenue deficit was near 5 percent. By the end, without introducing new taxes, we reformed tax policy: widened taxpayer files, systematized collection, and curbed evasion. Revenues rose; expenditures were curtailed; losses minimized. From top down, example was set to save expenditure, boosting the Treasury. The budget deficit fell to 2.5 percent. That is good fiscal management—collecting Rs. 1.14 trillion more to the Treasury. The Opposition still says Rs. 100 billion relief is too small. Rs. 100 billion is Rs. 10,000 crore. Over the next few months, we earmarked this to avert hardships for fishers, Aswesuma beneficiaries, and low electricity users (up to 90 units). We are taking disciplined economic decisions, not misusing Treasury funds.

¶ 05 The 2025 Budget passed in March. Local government elections were held on 6 May 2025. Only after that did the government begin full work. Due to the “BOO” cyclone at end-November, we had to respond, spending Rs. 270 billion that year for affected people. This year too, we set aside Rs. 500 billion for relief after the “8963” cyclone. We could do so because of sound economic management by our Finance Minister, President Anura Dissanayake, and this government. Otherwise how could we support victims? Yes, debt limits adjust and borrowing rises, but stability allowed this space. The President extended funds: Rs. 25,000 to clean homes, Rs. 50,000 to replace lost goods, Rs. 500,000 for partial house damage, and Rs. 5 million for full reconstruction? [Interjections follow with clarifications on tranches.]

¶ 06 We are paying compensation—98 percent already paid; 99 percent in Anuradhapura. Where unpaid, it is due to technical or administrative issues; inform us and we will resolve them with the relevant District Secretaries and the Commissioner General of Essential Services.

¶ 07 We assisted poultry, cattle, goat farmers, and fishers who lost boats and nets; small shops and bars destroyed were compensated. The Opposition alleging no compensation is unfair.

¶ 08 In 2025 we provided Rs. 270 billion; this year so far Rs. 500 billion for cyclone relief; and Rs. 100 billion through the new economic package. We can do this because the Treasury has funds. The Opposition still tries to instill fear.

¶ 09 If we had not managed the economy, where would people be now? They say poverty has increased and people have no food—perhaps because theft has been curbed. We are governing without corruption and delivering all possible relief.

¶ 10 As we steadied 2025 and moved into 2026, the “894” cyclone struck, and then the Middle East conflict escalated—an attack on Iran triggered a broader war dynamic, hampering supply chains. The Strait of Hormuz, through which 40 percent of global oil transits, saw about 20 percent disrupted; air corridors reduced; exports impeded; jobs and investments impacted. Since 27–28 February, it has been over a month. As this could grow into a global conflict-driven crisis, we took decisions: how to ration and distribute food and fuel, prioritize fuel to fishing boats, farmers for Yala, industries, and logistics—from port to retail—ensuring essential flows. Because we managed early, we could cancel the midweek holiday and increase fuel releases.

¶ 11 On rice: we have a surplus sufficient for three months. Daily consumption is 6,500–7,000 MT; monthly need ~210,000 MT. Peak annual capacity is 2.5 million MT, and stocks exceed 3.0 million MT. The issue is Keeri Samba varieties. To correct last year’s shortage, we targeted 12.5 percent Keeri Samba in Maha, but the “BOO” cyclone destroyed much. Keeri Samba takes 3.5–4 months; we increased from 6 percent last year to 8 percent this year—below the 12 percent goal. Therefore, we authorized temporary import of substitutes—GR 11 and Keeri Ponni—between 1–30 April, to be cleared by 31 May. About 600 MT arrived yesterday; about 3,000 MT expected today. We are cracking down on overpricing and hoarding; raids were conducted in Dambulla. The government purchase prices were: Nadu Rs. 120/kg, Samba Rs. 130/kg, Keeri Samba Rs. 140/kg; retail was higher, so imports will stabilize consumer prices while farmers have already benefited from higher farmgate prices.

¶ 12 We act as needed to protect consumers and farmers, and manage the economy. Some in the Opposition said the President is afraid. As I say, lions do not fear jackals. We will do the work of lions. Thank you.