Hon. Major General (Rtd.) Aruna Jayasekera

Thank you, Hon. Presiding Member, for the opportunity. Today we discuss three regulations issued by Gazette under the Special Commodity Levy (SCL) relating to food imports, one resolution under the Customs Ordinance, and two further orders. Our aim is to support macroeconomic stability, market competitiveness and price stability, while protecting domestic production, based on proper analysis. Since coming to office, our primary responsibility has been to restore economic stability through fiscal discipline. The severe instability we faced stemmed in part from ad hoc tax concessions granted in 2020 on frequently consumed essentials, which caused large revenue losses and destabilized the economy. We will not repeat such short-sighted decisions. Instead, guided by expert analysis, we have carefully calibrated relief. Whenever “tax concessions” are mentioned, people recall the “sugar tax scam”. Concessions should benefit consumers, but in that episode only a few connected individuals gained. In contrast, we now manage revenue with discipline and transparency, supporting stability and development. Results are visible. Sri Lanka Customs exceeded its revenue targets, recording approximately Rs. 2,510 billion against a target of Rs. 2,115 billion. In the first weeks of this year, revenue has been strong as well, reflecting stricter enforcement, improved valuation, and recovery in imports after years of contraction. Yesterday, the Managing Director of the International Monetary Fund met H.E. the President and acknowledged Sri Lanka’s progress: growth above 5 percent, inflation reduced to around 2 percent, adequate reserves, and revenue outperforming expectations—key signs of stability. One regulation provides SCL exemptions for relief goods donated after the recent “Ditva” cyclone under the Disaster Recovery framework, so that essential supplies to affected people could be swiftly received and distributed. We declared an emergency, appointed a Commissioner-General of Essential Services, and, through Customs and the National Disaster Relief Centre, enabled efficient distribution to those in need. Thirty-five countries contributed assistance valued at about Rs. 3.1 billion, including roughly 340 metric tons of food. After arrival at airports and ports, exempted consignments were handed to the Disaster Management Centre and then distributed through Government Agents and Divisional Secretaries. Several international organizations also contributed. In conclusion, these measures have provided timely relief and supported uninterrupted essential public services. I recommend that the House approve the regulations. Thank you.