Hon. Nishantha Jayaweera

Hon. Deputy Chairperson, three regulations under the Special Commodity Levy Act, a resolution under the Customs Ordinance, and two orders under the Motor Traffic Act are before the House. First, hybrid “mandarin” varieties currently attract an SCL of LKR 120 per kg irrespective of origin. Under the Pakistan–Sri Lanka FTA, such special levies cannot be charged on qualifying imports from Pakistan; tariff relief must be granted. Therefore we remove the fixed LKR 120 SCL and bring these under normal tariffs—at 20% ad valorem or LKR 60 per kg, whichever is higher—thus granting FTA relief while protecting revenue on other origins under the Revenue Protection Act. Second, we continue protecting domestic potato and big onion farmers by maintaining the increased SCLs on imported potatoes and onions. Third, to grant relief to those affected by Cyclone Michaung, essential food items received as aid are exempted from the SCL. Fourth, SCLs previously imposed on 62 tariff lines and due to lapse on 31.12.2025 are extended by one year. Additionally, during Ramadan, dates received as donations for the Muslim community—previously subject to LKR 200 per kg—will be reduced to LKR 1 per kg on the recommendation of the Secretary, Ministry of Buddha Sasana, Religious and Cultural Affairs. Beyond that, in 2025 we secured major economic gains: total exports exceeded USD 17.1 billion; tourism earned over USD 3.1 billion with record arrivals; worker remittances exceeded USD 8.1 billion; and FDI surpassed USD 1,050 million—contributing to a current account surplus of about USD 1.7 billion. These are significant. Some in the Opposition claimed we promised to reduce taxes to zero. We never said that. We promised a fair tax system aligned with sound principles, to be simplified and modernized. Legal amendments are being brought shortly to simplify the regime and accelerate collection—including incentives for prompt settlement of assessed income tax within six months by waiving applicable interest, and deploying technology. Under this Government, the three key revenue departments—Inland Revenue, Customs and Excise—were given the highest targets in history and then had those targets revised upwards mid-year. For the first time, Inland Revenue exceeded even its revised target, collecting an additional LKR 41 billion. Sri Lanka Customs surpassed its (and revised) target by over LKR 271 billion in 2025. Excise exceeded target by LKR 5 billion. In January 2026, these departments are already outperforming monthly targets. This reflects correct policy, fiscal discipline, public trust that taxes are used fairly for development, and improved departmental efficiency. On disaster relief: contrary to claims, in 2025 the Government allocated LKR 72 billion for immediate relief to those affected by Cyclone Michaung. The LKR 25,000 cleaning grant has been paid to over 98% of eligible households; the LKR 50,000 grant to over 85%. Funds are fully allocated; any delays are due to documentation issues at the beneficiary level, not lack of funds. Additionally, Parliament approved a Supplementary Estimate of LKR 500 billion—there is no cash shortfall. As the President stated, the Government is delivering the promised relief. We will continue to raise living standards through these measures. Thank you.