Budget 2016 Full Speech & Proposals

7/24/2019 Budget 2016 Full Speech & Proposals

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BUDGET 2016 FULL SPEECH &

PROPOSALS

Saturday, 21 November 2015

PREAMBLEHonourable Speaker, as the 20th !nan"e #!n!ster o$ the %emo"rat!"So"!al!st Republ!" o$ Sr! Lanka !t !s not only a pleasure but also a pr!v!le&e topresent the '0th (ud&et o$ the "ountry $or the year 201)* +he eerves"entleadersh!p and &u!dan"e o$ H!s -."ellen"y the Pres!dent #a!thr!pala S!r!senaand the Pr!me #!n!ster Honourable Ran!l /!"kremes!n&he have prov!ded the

!deal $ormula to &enerate a bud&et seek!n& e."ellen"e !n all $ronts* +he201) (ud&et !ll &o !nto the annals o$ h!story as the most s!&n!"antbud&et ever to be presented as represent a nat!onal 3overnment o$"onsensus un!ted to "reate a ne e"onom!" and so"!al order $or the beneto$ all Sr! Lankans, ak!n to the rst 3overnment o$ !ndependent Sr! Lankah!"h as truly a nat!onal &overnment

+he statement made on 24 anuary 2015 on !nter!m bud&et proposals

termed as 6Hundred %ay Revolut!on7 ensured that a ma8or!ty o$ people o$
http://www.ft.lk/article/499335/BUDGET-2016-FULL-SPEECH---PROPOSALShttp://www.ft.lk/article/499335/BUDGET-2016-FULL-SPEECH---PROPOSALShttp://www.ft.lk/templates/images/logo.pnghttp://static.ft.lk/ftadmin/wp-content/uploads/2015/11/Untitled-431.jpghttp://www.ft.lk/article/499335/BUDGET-2016-FULL-SPEECH---PROPOSALShttp://www.ft.lk/article/499335/BUDGET-2016-FULL-SPEECH---PROPOSALS


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Sr! Lanka ho had under&one tremendous d!9"ult!es and hardsh!ps "ould

nally seek e"onom!" $reedom* do not !sh to dell on the pos!t!ves o$ the

!nter!m bud&et prev!ously presented and look $orard to del!ver!n& $urther

d!v!dends throu&h the adopt!on o$ prudent and "ohes!ve e"onom!" pol!"!es

benett!n& the nat!on*

Honourable Speaker, !t !s ne"essary to salute the people o$ Sr! Lanka ho

stood up $or the!r r!&hts and del!vered the verd!"t throu&h the most

demo"rat!" ele"t!on to ensure the as"end o$ Honourable #a!thr!pala

S!r!sena to be the Pres!dent o$ Sr! Lanka* /e "ould remember the un"eas!n&

aves o$ e"onom!" rhetor!" h!"h lled our ears dur!n& the bud&et

presentat!ons o$ the last re&!me, devo!d o$ benets to suer!n& masses*

Honourable Speaker and Honourable Pr!me #!n!ster, the Pres!dent!al

ele"t!ons held on : anuary 2015 "ould be termed as a turn!n& po!nt o$ the

nat!on, a nat!on !th a her!ta&e and "ulture dat!n& ba"k to over 2,500

years* +he people o$ Sr! Lanka on"e a&a!n endorsed the!r verd!"t by

&rant!n& an opportun!ty to $orm a nat!onal &overnment o$ "onsensus devo!d

o$ petty d!eren"es and a pos!t!ve outlook !n Au&ust 2015, on"e more

throu&h a most demo"rat!" ele"t!on* +he dynam!"s o$ ded!"ated leadersh!p

based on "onsensual pol!t!"s and "omm!tment to an unaver!n& pol!"y, the

dom!neer!n& hallmarks o$ the Pr!me #!n!ster Honourable Ran!l

/!"kremes!n&he paved the ay $or ba"k to ba"k demo"rat!" v!"tor!es $or

people o$ Sr! Lanka*

%ur!n& the short span o$ ten months, the trans$ormat!on o$ the so"!al,

e"onom!" and pol!t!"al spheres !n Sr! Lanka "ould be termed as

phenomenal* +he dero&atory 6hubs o$ "rony "ap!tal!sm7 had d!s!nte&rated$orever, the $earsome 6/h!te van syndrome7 had been e.t!n&u!shed and

the 6most detestable $am!ly bandy!sm7 erad!"ated* +oday, the avera&e

people o$ Sr! Lanka are en8oy!n& not only the $ru!ts o$ e"onom!" d!v!dends

but also demo"rat!" $reedom h!"h as under a "loud dur!n& the last

re&!me* +he ten month per!od as a most d!9"ult phase to traverse, $rom a


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&overn!n& v!e po!nt* A "r!s!s;r!dden e"onomy, d!eren"es r!$e, a m!nor!ty

&overnment rul!n& the "ountry* (ut the a"h!evements ere s!&n!"ant and

ne m!lestones rea"hed pav!n& the ay $or a ne Sr! Lanka*

Lord A"ton


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+he $ore!&n pol!"y o$ Sr! Lanka as blem!shed and e ere on the br!nk o$

re"e!v!n& str!n&ent e"onom!" san"t!ons and almost le$t to $end $or ourselves

!th l!m!ted ass!stan"e $rom prev!ously support!ve nat!ons* 3overnment

pol!"y as haCardous to the ee"t that the levels o$ aste and "orrupt!on

rea"hed h!ther to be unheard o$ proport!ons and the ne&at!ve opt!ons ere

pra"t!"ed !th utmost !mpun!ty* Ant!;poverty pro&rams ere pol!t!"ally

mot!vated and d!d not rea"h the needy and suer!n& masses* La and

order o$ the "ountry as turn!n& med!eval and the "ountry as &radually

"onvert!n& to a $eudal ent!ty*

+he Ra8apaksa re&!me as "omm!tted to end!n& the str!$e and erad!"at!on

o$ terror!sm* And they d!d su""eed to r!d mother Lanka o$ $eared terror!sm

and they should be "omplemented $or do!n& so !th the &allant $or"es

lead!n& the ay* Hoever, the key turnaround $a"tor should not be

$or&otten* At the end o$ 2001, the "ountry as almost $all!n& apart !th a

ne&at!ve &roth rate, "ont!nuous es"alat!on o$ v!olen"e and key e"onom!"

tar&ets atta"ked*

Donsensual pol!"!es o$ Honorable Ran!l /!"kremas!n&he adm!n!strat!on

halted th!s sl!de so that not only the e"onomy turned around but our &allant

$or"es also "ould replen!sh mu"h needed arms, eu!pment and ammun!t!on

and most !mportantly re"over lost morale* /e should remember the ords

o$ the prophe"y uoted by late Honourable R ayaardena at San

ran"!s"o $rom the %hamma Pada that 6hatred should not be "eased by

hatred but only !th k!ndness7 * Althou&h the ar as on a lot as le$t to

be done to !th the heart and m!nds o$ all "ommun!t!es and rel!&!ous se"ts

!n Sr! Lanka* t !s the ob8e"t!ve o$ our &overnment to ensure but our lateleader so "ate&or!"ally presented !s pra"t!"ed !n no un"erta!n terms*

/e have restored not only demo"ra"y but brou&ht !n a ne d!mens!on o$

$reedom devo!d o$ $ear and !n8ust!"e* Pol!"!es have been revamped*

N!neteenth amendment has restored ma8or prov!s!ons o$ the repealed

Seventeenth amendment and the Donst!tut!onal Doun"!l !s very mu"h !n


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e.!sten"e !th !ndependent "omm!ss!ons as ell* /e look $orard to the

&oodness o$ the 6Eaha Palanaya7 or &ood &overnan"e "as"ad!n& to all strata

o$ the so"!ety and are "omm!tted to do so*

/e have a dream to be another ra!nbo nat!on, a developed nat!on* A

nat!on !th an upbeat happ!ness !nde., a nat!on o$ prosper!ty, "as"ad!n&

!th &oodness and &ood!ll* /e need to prov!de e"onom!" $reedom $or our

$uture &enerat!ons to en8oy the $ru!ts o$ our "omm!tment* /e !ll ensure

del!very o$ tar&ets and &oals set $o"us!n& on short, med!um and lon& term

strate&!es and "on$ront stru"tural development "hallen&es to $a"!l!tate

trans!t!on toards an upper m!ddle !n"ome e"onomy* /e are not look!n&

$orard to prov!d!n& a plat$orm $or $e m!ll!ona!res only but endeavour to

pave the ay $or m!ll!ons o$ m!ll!ona!res to "ome !nto e.!sten"e*

t !s !n th!s "onte.t that on 5 November 2015, Honourable Pr!me #!n!ster

del!vered a pol!"y statement to th!s au&ust body h!"h enumerated the

plat$orm $or the bud&et 201)* +he med!um term strate&!es proposed

"ons!sted o$ the under ment!oned*

a@ 3enerat!n& o$ one m!ll!on employment opportun!t!es

b@ -nhan"!n& !n"ome levels

"@ %evelopment o$ rural e"onom!es

d@ -nsur!n& land onersh!p to rural and estate se"tors, the m!ddle "lass and

&overnment employees

e@ Dreat!n& a !de and a stron& m!ddle "lass

Honourable Speaker, the sa!d pol!"y statement !s s!&n!"ant and !t !s the

bas!s $or th!s bud&et* +he statement "onta!ns broad pol!"!es o$ nat!onal

!mportan"e that !ll have $ar rea"h!n& pos!t!ve !mpl!"at!ons to the Sr!Lankan e"onomy* t "ate&or!"ally po!nts out that to a"h!eve our e"onom!"

and development &oals, e need to establ!sh the e"onom!" $oundat!on

"orre"tly* Only !th a stron& $oundat!on e "an per$orm and a"h!eve set

&oals and tar&ets* +hat


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$o"us on the 8ourney $orard*

Hen"e, our 3overnment


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#a!thr!pala S!r!sena


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Rubber and Do"onut as the ma!n a&r!"ultural produ"ts and ma8or e.ports as

ell* +he dual!st!" e"onomy also mana&ed to produ"e $ood "rops to

adeuately susta!n the reu!rements o$ the nat!on* A per "ap!ta !n"ome o$

around >S 120 and an e"onomy o$ around >S one b!ll!on ere v!tal

e"onom!" stat!st!"s o$ that era*

%ur!n& th!s per!od, the e"onom!" re&ulat!ons ere less, mak!n& !t a $ree

market e"onomy, but e.posure to !nternat!onal trade and lo level o$

e.ports and "ont!nued $o"us on el$are measures made the e"onomy

vulnerable* Pol!t!"ally mot!vated el$are measures ne&at!vely reBe"ted on

the a"h!evement o$ e"onom!" prosper!ty and nat!onal!st!" !ssues result!n& !n

unplanned nat!onal!sat!on o$ resour"es added to the mount!n& e"onom!"

turmo!l*

+he be&!nn!n& o$ the sevent!es brou&ht !n era o$ a "losed e"onomy, "ontrols

and rat!on!n&* +he people ho mana&ed to surv!ve the per!od o$ restr!"ted

"ommod!ty a""ess !ll remember the era o$ 6Haal Polu7 ?here "arry!n& o$

r!"e over a &!ven uant!ty as restr!"ted@ and 6Paan Pol!m7 ?here bread

as rat!oned and !ssued on a "ard@* Other restr!"t!ons on "loth!n& and other

bas!" needs ere also !mposed mak!n& !t d!9"ult $or the people to at least

en8oy e"onom!" $reedom* +he era as s!&n!ed by the restr!"t!on on

movement o$ sele"ted "ommod!t!es and the restr!"t!ve era ended !th the

per!od o$ re$orms based on 6Open e"onom!" pr!n"!ples7 "ommen"!n& 14'',

under the outstand!n& leadersh!p o$ the Late H!s -."ellen"y *R*

ayaardena, the rst -.e"ut!ve Pres!dent o$ the %emo"rat!" So"!al!st

Republ!" o$ Sr! Lanka*

(y 14'', the e"onomy as st!ll o$ a m!nor value o$ >S F*1 b!ll!on and a per"ap!ta !n"ome o$ >S 24F, an !n"rease o$ a mere >S 1'F over a per!od o$

th!rty years*

1!""# Ne$ T%in&in'


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A pol!"y revolut!on $olloed !th the resound!n& v!"tory o$ the >NP !n 14''

and the e"onomy as opened almost overn!&ht, the rst "ountry !n South

As!a to do so* +he l!beral!sed e"onom!" outlook opened doors $or $ore!&n

!nvestors to !nvest !n produ"t!ve ventures, so"!al!st "ontrols ere l!$ted and

Sr! Lanka sh!$ted $rom !nard e"onom!" or!entat!on to rea"h ne he!&hts !n

e"onom!" &roth*

Phas!n& out o$ !mport "ontrols, $ree!n& o$ "red!t markets, !ntrodu"t!on o$

un!ed e."han&e rate systems, !th dral o$ state trad!n& monopol!es,

end!n& o$ pr!"e "ontrols as ell as pr!vat!sat!on o$ state oned enterpr!ses

ere dynam!" re$orms !ntrodu"ed* +he pr!vate se"tor as !nv!ted to be the

6-n&!ne o$ 3roth7 h!lst the phrase that a 6&overnment has no bus!ness

to do bus!ness7 !deally su!ted the ne e"onom!" pro"ess*

Late H!s -."ellen"y *R* ayeardeneNP &overnment


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e"onom!" pol!"!es o$ the prev!ous re&!me !th a human $a"e and

a""elerated the pr!vat!sat!on pro"ess o$ state oned enterpr!ses* +he

es"alat!on o$ !nternal str!$e and terror!st atta"ks on s!&n!"ant e"onom!"

tar&ets h!ndered the pro&ress and d!verted the attent!on o$ the &overnment

aay $rom the e"onomy* (y year 2000, Sr! Lanka as st!ll a lo !n"ome

e"onomy !th a per "ap!ta o$ >S :)4, and the 3%P amounted to >S 1)*)

b!ll!on !th unemployment as around 10 per"ent* or the rst t!me s!n"e

!ndependen"e, the &roth rate had a "ontra"t!on !n 2001*

2001)200(# A T$)e3 T*3n3*nd

+he ne&at!ve &roth syndrome as reversed dur!n& th!s per!od by a&overnment headed by the !n"umbent Pr!me #!n!ster Honourable Ran!l

/!"kremes!n&he* +he v!s!on o$ the &overnment "reated a mult!tude o$

opportun!t!es $or the entrepreneurs and ne !nvestments brou&ht !n an

aura o$ &oodness "oupled !th transparen"y and &ood &overnan"e* +he

e"onom!" pol!"!es adopted reaped r!"h d!v!dends and on"e a&a!n the

"ountry as on the road to pro&ress*

+he bold approa"h prov!ded a ne !mpetus $or the la&&!n& e"onomy andthe slo pa"ed e"onom!" a"t!v!ty o$ the prev!ous re&!me as repla"ed by a

ne approa"h !th an ur&en"y to "han&e $or the better* Hoever, the

be&!nn!n& o$ the era !s s!&n!ed by ords o$ prophe"y h!"h had been

summed up !n the $ollo!n& mannerK 6+he truth !s that Sr! Lanka !s !n the

th!"k o$ an e"onom!" "r!s!s ; a "r!s!s borne o$ deep !ndebtedness* $ not

arrested soon, !t !ll keep employment and !n"ome at the orst nad!r $or

&enerat!ons to "ome* +here$ore, e need to a"t prudently and !th a

reneed v!s!on to stop the "ountry $rom &o!n& don the slope o$ ru!n* +he

need $or re$orm!n& the e"onomy !s "ompell!n& as there !s no ay e "an

"arry on the "urrent ay7*

!sh to d!&ress Honourable Speaker, to uery as to hether same


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pr!n"!ples should apply !n today


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nature h!"h as "ondemned by all "on"erned* +he people breathlessly

looked $orard to a $uture la"ed !th prosper!ty and happ!ness* Hoever,

the belts that ere reuested to be t!&htened dur!n& the he!&ht o$ the str!$e

"ould not be sla"kened and the e"onomy d!verted to a per!lous path

str!"ken !th mount!n& debts* +he e"onom!" rhetor!" "hurned out by

63obellest!"7 promoters ho ere mere "rony hen"hmen o$ the rulers, ere

!n a "ohes!ve partnersh!p !th the "reators o$ never end!n& hosannas $or

the rul!n& el!te but the "ountry dra&&ed on toards almost an abyss o$ no

return* +he 6(ubble had to burst7 and !t d!d on the $ate$ul day $or the nat!on

on the :th anuary 2015*

+he post str!$e per!od "ommen"!n& 2004 as looked $orard to by many as

to be the era o$ reaaken!n& o$ the nat!on !th harmony and "amarader!e

beteen all "!t!Cens o$ the "ountry devo!d o$ ra"!al, rel!&!ous and "aste

restr!"t!ons* +hey also e.pe"ted a re8uvenat!on o$ the e"onomy*

Honourable Speaker, at th!s 8un"ture !t !s my onerous duty to salute the

&allant se"ur!ty $or"es ho made !t poss!ble to save mother Lanka $rom

about three de"ades o$ str!$e sur$e!t !th the orst $orm o$ terror!sm* +he

sa"r!"es made by our brave se"ur!ty $or"es, the!r $am!l!es and $r!ends !ll

$orever be !n our m!nds* No amount o$ monuments or memor!als "ould ever

"ompensate the sa"r!"es they made* t !s no !n"umbent upon us to

preserve the &!$t o$ pea"e that they beueathed on us* +he $reedoms that

e have on must be upheld and preserved* /e are m!nd$ul o$ the threats

that are e.!st!n& !n the orld e l!ve !n* /e are "o&n!sant o$ the "han&!n&

$a"e o$ terror!sm* solan!st pol!"!es !ll not do, !nstead th!s reu!res a very

strate&!" approa"h ork!n& !th our ne!&hbours and $r!ends &lobally* >se o$modern te"hnolo&y !s v!tal !n ma!nta!n!n& se"ur!ty !n the "ountry* Let me

re!terate that there !ll be no "omprom!se hen !t "omes to preserv!n& our

nat!onal se"ur!ty*

A "ountry


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o$ v!bran"y, !nvestors returned on"e a&a!n pos!t!vely !nterested !n the

"ountry, ne opportun!t!es ere ava!lable !n the !nternat!onal "ap!tal

markets $or publ!" and pr!vate se"tor nan"!n&, and as a result, the &roth

momentum o$ the e"onomy a""elerated sho!n& the ay $or enter!n& the

path $or Sr! Lanka to a"h!eve the status o$ a m!ddle !n"ome e"onomy* +here

ere ma8or h!""ups hen a $avoured pol!t!"!an !th a band o$ &oons $rom

the deep;south ent on a rampa&e dama&!n& the reputat!on o$ the "ountry

and "aus!n& !rreparable loss o$ $ame to the tour!st !ndustry by !nB!"t!n&

dama&e to tour!sm throu&h desp!"able a"ts to to tour!sts on hol!day* As

e all kno even the 8ud!"!al pro"ess as unduly delayed and the relevant

"ountry o$ the v!"t!ms had to !ntervene to a""elerate the pro"ess* Other

a"ts o$ m!s"ondu"t ma!nly by pol!t!"al la"keys brou&ht $urther d!srepute to

the nat!on retard!n& pro&ress*

t as shon that the &roth momentum had a""elerated dur!n& the post

2004 per!od o$ the last re&!me but d!d the avera&e Sr! Lankan benet

ben!&nly as the &ures dep!"ted* +he road to a"h!ev!n& a ne e"onom!"

m!lestone as heav!ly sho"ased o$ rea"h!n& #!ddle n"ome status by

201)* (ut the !nternat!onal "ondemnat!on and non;a""eptan"e o$ not only

the $ore!&n pol!"y but also the utteran"es o$ pol!t!"al mouth p!e"es o$ the

last re&!me d!d not make Sr! Lanka a sou&ht a$ter nat!on by the !nvestors*

Our status and rank!n& o$ the do!n& bus!ness !nde. suered* +he nat!on as

$or"ed to !tness the melodrama o$ a Dab!net #!n!ster protest!n& outs!de

the &ates o$ the >n!ted Nat!ons threaten!n& to $ast h!msel$ to death and

&!v!n& up the protest upon been $ed !th G!n& Do"onut ater by the then

Leader o$ the "ountry* +hat as a pol!t!"al drama at !ts best but the "ountrysuered* +he e.pe"ted %s never real!sed and e.!st!n& ass!stan"e prov!ded

by $r!endly nat!ons su"h as 3SP plus as !thdran* Sloly the "ountry as

be!n& dra&&ed !nto an e"onom!" hell hole !th !nternat!onal san"t!ons

loom!n& up !n the near d!stan"e*

+here as a &olden opportun!ty to the then &overnment to !mplement


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relevant re$orms to susta!n the development* /!th a proper v!s!on and

pol!t!"al and e"onom!" &u!dan"e, the "ountry "ould have been on the road

to be"om!n& an upper m!ddle !n"ome e"onomy break!n& the parado. o$ a

lon& st!nt as a m!ddle !n"ome nat!on, upon a"h!evement* +he pol!t!"s based

on m!s&u!ded e"onom!" pol!"!es al!enated Sr! Lanka $rom many trad!n&

partners and !nvestors, result!n& !n !n"reased burden on publ!" "oers

h!lst "reat!n& numerous !mbalan"es !n the ma"ro;e"onomy*

/e have to a""ept the $a"t that the prev!ous &overnment embarked on

up&rad!n& the "ountry


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sea port !th $eer sh!ps* Hoever, the name o$ the promoter l!ves on as

the name boards to these lo"at!ons o$ vast e.pend!ture and aste, to br!n&

out h!s name $or the benet o$ v!s!tors ho on and o embark on

s!&htsee!n&*

Honourable Speaker, hat e have heard throu&h var!ous o9"!al and or

non; ver!ed sour"es "ould be even less than the 6t!p o$ the !"eber&7* +he

!nvest!&at!ve pro"ess may take t!me but the ev!den"e !s o$ an

un!mpea"hable nature* Honourable Speaker, reuest all patr!ot!" "!t!Cens

o$ Sr! Lanka to be pat!ent unt!l the truth !s d!ssem!nated and the "ulpr!ts are

$ound &u!lty throu&h the due pro"ess o$ la !n e.!sten"e* also take th!s

opportun!ty to reuest the relevant "!t!Cens o$ our beloved motherland to

br!n& ba"k any r!"hes hoarded out o$ the "ountry as at th!s "ru"!al 8un"ture

the "ountry needs to pool to&ether all su"h resour"es*

%ur!n& the rule o$ the last re&!me, the &overnment ta. revenue as a

per"enta&e o$ 3%P de"l!ned "ont!nuously to around 10*2 I o$ 3%P by 201F,

mak!n& the e"onomy o$ Sr! Lanka br!ttle, and Sr! Lanka &radually be"ame a

"ountry endoed !th one o$ the loest revenue to 3%P rat!os* +oday, !t !s

!ron!"al that the revenue !s not su9"!ent to a""ommodate our debt serv!"e

payments* And remember e ere endeavor!n& to be a onder !n As!a* Ees

e had andered aay $rom the !deals o$ pra"t!"al e"onom!"s, aay $rom

real!ty and are no le$t to onder hat the so "alled e"onom!" maestros o$

the last re&!me had "on8ured dur!n& a de"ade o$ "ontrol*

t !s obv!ous and "ould be ver!ed !th ease that desp!te !mprovements !n

some !n$rastru"ture $a"!l!t!es, the real benets o$ the e"onom!" de"!s!ons

have not been ltered to rural and re&!onal "ommun!t!es as e.pe"teddur!n& the post str!$e per!od* +he l!v!n& "ond!t!ons o$ our people the most

valuable asset o$ our motherland have not been !mproved to the level, as

hat ould have been e.pe"ted !n the last de"ade* A "r!t!"al look at the

!neual!ty o$ !n"ome and the 3!n!;Doe9"!ent dep!"ts that only a hand$ul o$

Sr! Lankans have &arnered the lar&est share o$ the p!e*


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2014# Ntin+ Unit7 G8e3nent 9 S3i Ln&./ Ne$ Dien/in in

P+itic/

+he ele"t!on o$ H!s -."ellen"y the Pres!dent #a!thr!pala S!r!sena !n anuary

2015, and the establ!shment o$ the ne nat!onal &overnment o$ "onsensus

led by the >NP under the "har!smat!" leadersh!p o$ the Honourable Pr!me

#!n!ster Ran!l /!"kremes!n&he presents a $resh "hapter !n Sr! Lanka


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Lankan e"onomy !s

+he uest!ons that are posed are based on the le&a"y o$ the prev!ous

re&!me that e !nher!ted* Mulnerab!l!t!es that e !nher!ted !th re&ard to

the e"onomy are man!$old h!"h rema!n hard!red !nto the deep stru"ture

o$ the e"onomy, desp!te !mpress!ve &roth &ures portrayed dur!n& the

re"ent past* t "ould be sa!d that e"onom!" &roth as ma!nly dr!ven by

non;tradable se"tors unl!kely to be susta!ned sour"es o$ &roth, =n"red!ble

s"al< "onsol!dat!on mask!n& ma8or stru"tural eaknesses !n the s"al

se"tor, lon& term produ"t!v!ty at r!sk as !nvestments on human "ap!tal

development suer!n& at the e.pense o$ !n"reas!n&ly r!&!d re"urrent

e.pend!ture "omm!tments, !ne9"!ent allo"at!on o$ resour"es result!n& !n

subopt!mal so"!al el$are as !neual!ty o$ !n"ome levels !n"reas!n& desp!te

$all!n& poverty head "ount*

+he pl!&ht o$ e"onom!" oes !s almost overBo!n&* Honourable Speaker, a

ma8or eort had &one !nto &enerat!n& the bud&et proposals and e seek to

prov!de a solut!on !th th!s Nat!onal (ud&et $or 201) $or a ma8or!ty o$ the

uer!es posed*

THE CURRENT STATE OF THE GO:ERNMENT FINANCE AND THE

ECONOM

Honourable Speaker, no !sh to $o"us on the task ahead o$ us* +he Sr!

Lankan e"onomy !s stu"k !n a hu&e debt sto"k and a h!&h de"!t as ell*

Hoever, !sh to re!terate that the debt and de"!t mess that e !nher!ted

!s not o$ our mak!n& and e "ondone the s!tuat!on !n no un"erta!n terms*

/e need to take pos!t!ve a"t!on to make an !nnovat!ve d!eren"e and

del!ver results h!"h are a""eptable $rom not only an e"onom!" v!e po!nt

but also $rom so"!o pol!t!"al aspe"ts* O$ "ourse there !s a &reater amount o$

ork to be e.pended on the arena o$ e"onom!" resurre"t!on throu&h hat

"ould be termed !n mere "ollou!al terms as bud&et repa!r*


18/177

-very nat!on must l!ve !th!n !ts means, and Sr! Lanka !s no d!erent* As

su"h, e are not !n a pos!t!on to &o on a rampa&e !th re&ard to "olle"t!on

o$ ta.es to &enerate revenue* Obv!ously e must "ont!nue to $o"us on the

aspe"t o$ sens!ble sav!n&s as ell* Honourable Speaker, !sh to endorse

the pr!n"!ple that e must !nvest ta.payer money !th &reat "are $or the

benet o$ the nat!on* %ur!n& the last $e years onder hether the

e"onom!" maestros d!d adhere to th!s pr!n"!ple hen the uantum o$

resour"es and opportun!t!es asted "ould be taken !nto due "ons!derat!on*

+he stru"tural eakness !n the s"al se"tor arrants !mmed!ate attent!on

!thout h!"h susta!ned &roth !n the lon& term may not be a real!ty* +he

$aade o$ l!es "hurned out d!d not make &ood read!n& $or seasoned

e"onom!sts* !s"al de"!t $all!n& $rom 10I o$ 3%P !n 2001 to 5*'I by 201F,

total debt, $all!n& $rom 102I o$ 3%P !n 2002 to '2I o$ 3%P !n 201F

env!sa&!n& to make us bel!eve that some s"al "onsol!dat!on had taken

pla"e*

As have already stated, serv!"!n& o$ debt uses up all the &overnment

revenue h!"h !mposes heavy "onstra!nts on re"urrent and "ap!tal

e.pend!ture* /!th an e.pand!n& debt prole, debt dynam!"s had shon

some remarkable sh!$ts* n the outstand!n& sto"k o$ $ore!&n debt, the share

o$ "ommer"!al loans had &a!ned momentum dur!n& the re"ent years*

Our &overnment !s "omm!tted to $ollo more transparent market or!ented

pol!"!es that $a"!l!tate pr!vate se"tor e"onom!" a"t!v!t!es and remove var!ous

barr!ers !n the e"onomy h!"h d!srupt the smooth operat!on o$ $ree

markets* +h!s reu!res drast!" re$orms to all se"tors o$ the e"onomy,

be&!nn!n& !th the s"al se"tor*Honourable Speaker, let me present more spe"!" deta!ls on some o$ the

burn!n& !ssues !n the "ountry


19/177

nature o$ s"al !ssues $a"ed by the "ountry* t !s my $ervent !sh that

mysel$, and o9"!als o$ the #!n!stry o$ !nan"e have addressed the !ssues

ut!l!s!n& the l!m!ted resour"es to opt!m!se the benets $or the people o$ Sr!

Lanka*

T; Re8en*e

t !s obv!ous that the stren&th o$ any s"al system depends on the ab!l!ty to

&enerate a su9"!ent amount o$ revenue to meet the planned and

ne"essary e.pend!ture* >n$ortunately, !t !s not the "ase !n Sr! Lanka, and

the s!tuat!on has a&&ravated !n the past de"ade and the a"t!on taken has

not brou&ht about mean!n&$ul results*

%e"l!n!n& &overnment revenue to 3%P rat!o portrays a ma8or

ma"roe"onom!" "on"ern $or the "ountry and th!s trend has to be reversed

on a pr!or!ty bas!s* Sr! Lanka


20/177

drast!"ally to 10*2I o$ 3%P by 201F* ron!"ally, the &roth o$ ta. revenue !n

absolute terms as 8ust F*FI !n 201F mu"h belo the nom!nal 3%P &roth

rate o$ '*JI* +hus, ta. revenue had been unable to keep pa"e !th

e"onom!" e.pans!on ev!den"ed !n re"ent years h!"h !s a ser!ous

phenomenon* t !s also un$ortunate to note that prev!ous attempts to

enhan"e s"al revenue, have $a!led m!serably dur!n& the past* >nbel!evably

there are about J5 ta.es and lev!es !n the system* Some o$ the las are

outdated and not read!ly understood by the ta.payers and only a $e ho

are "onversant about ta. las "ould $athom the !ntr!"ate nature o$ the

system o$ ta.at!on !n Sr! Lanka*

all!n& MA+ "olle"t!on !s the ma!n "ause o$ the de"l!ne !n ta. revenue !n

re"ent years and the &ures dep!"t the malady !n no un"erta!n terms*

Revenue $rom MA+ a""ounted $or F1I o$ total ta. "olle"t!on !n 2005, and !t

$alls to 2)I !n 201F* urther, MA+ "olle"t!on as a share o$ 3%P has

de"reased sharply $rom 5*:I !n 200F to 2*'I by 201F* n"ome ta. d!lut!on

also had kept pa"e, $all!n& $rom a 2*'I o$ 3%P !n 200) to 1*4I o$ 3%P !n

201F* As su"h, althou&h the nat!onal !n"ome had !n"reased there !s no

"ommensurate ta. !n"ome* Several !nherent $eatures are noteorthy as to

hy ta. revenue !s $all!n&* +he ma!n "ulpr!t "ould be eak "ompl!an"e due

to ta. adm!n!strat!on !ssues* A mult!tude o$ ta. e.empt!ons &ranted by

var!ous !nst!tut!ons also had been h!nder!n& pos!t!ve adm!n!strat!on o$ ta.*

A ma8or!ty o$ the revenue !s der!ved $rom !nd!re"t ta.es and the revenue

$rom d!re"t ta.es !s very lo* At the same t!me, many ho "ould aord to

pay ta.es and also ho are l!able $or payment o$ ta.es are not !n the ta.

system* t !s a ell;knon $a"t that ta. "ompl!an"e methodolo&y has to!mprove !n an endeavour to el!m!nate evas!on* urther, ta. adm!n!strat!on

also needs stren&then!n&*

Honourable Speaker, you ould re"all that dur!n& the last $e months, e

took some eorts to address these !ssues opt!n& $or !nnovat!ve measures o$

ta.at!on* Hoever, !t !s t!me to dev!ate $rom temporary solut!ons but


21/177

endeavour to "reate a ta. re&!me based on stron& re$orms to move $orard,

!mplement!n& su"h re$orms h!"h !ll have $ar rea"h!n& benets to the

"ountry*

Rec*33ent E;pendit*3e

Honourable Speaker, ta. re$orms !n !solat!on to bolster revenue ould not

"ontr!bute to stren&then the s"al system* t needs to be supported !th

appropr!ate e.pend!ture rat!onal!sat!on measures as ell h!"h !s o$ utmost

!mportan"e* +he uest!on !s ho e "ould real!se th!s ne"ess!ty* /e "ould

take a lot o$ lessons on hat should not be done $rom the per!od o$ the

Ra8apaksa re&!me hen e.pend!ture levels es"alated to h!therto be unheard

o$ proport!ons*

very stron&ly bel!eve and am "onv!n"ed that the l!ne m!n!str!es and

departments "ould tr!m don the!r "urrent e.pend!ture levels* +he t!me has

"ome to "r!t!"ally analyse and evaluate the e.pend!ture needs o$ the l!ne

m!n!str!es and departments to rat!onal!se unne"essary e.pend!ture and

el!m!nate e."ess!ve adm!n!strat!ve overheads h!"h are spent at the

e.pense o$ the l!m!ted d!re"t ta.payers and also the revenue $rom !nd!re"t

ta.es, !n"lud!n& $rom the poorer se&ment o$ the so"!ety*

As su"h, stron&ly advo"ate the "on"ept o$ Cero bud&et!n& !n $ormulat!n&

the nat!onal bud&et* n $a"t, !th th!s bud&et 201), e have brou&ht !n to

$o"us the "on"ept o$ Cero bud&et!n& under h!"h the spend!n& a&en"!es !ll

have to 8ust!$y ea"h and every !tem !n the!r respe"t!ve bud&et be$ore

reuest!n& $or allo"at!ons* +h!s pro"ess !ll be str!"tly adhered to !n

subseuent bud&ets as ell* Honourable Speaker, Cero bud&et!n& althou&h

der!ved $rom a""ount!n& pr!n"!ples !s pra"t!"ed !n many "ountr!es !n the

preparat!on o$ nat!onal bud&ets and onder hy e took su"h a lon& t!me

!n the !mplementat!on o$ Cero bud&et!n&* rom anuary 201), the 3eneral

+reasury !ll start $ollo;up a"t!ons on rev!e!n& the allo"at!ons $or

respe"t!ve m!n!str!es and !nst!tut!ons*


22/177

As a respons!ble &overnment sens!t!ve to the d!9"ult!es o$ the people, e

have mana&ed to ma!nta!n our "omm!tments by !n"reas!n& salar!es and

pens!ons substant!ally* n the meant!me, e have to also real!se that the

employment !n the publ!" se"tor has uadrupled over the last several

years*

Honourable Speaker, the obv!ous "onseuen"e o$ th!s phenomenon had

been the s!&n!"ant !n"rease !n the salary b!ll, h!"h e bel!eve has

es"alated to the ma.!mum and may be beyond any yardst!"k o$ rat!onal!ty

unless the e9"!en"y o$ the Publ!" Se"tor !s !mproved drast!"ally* Hen"e, e

have to look !nto the most appropr!ate ays o$ ma!nta!n!n& the "ont!nu!ty

and susta!nab!l!ty o$ publ!" se"tor emoluments* +h!s amon& others !n"ludes

!mprov!n& e9"!en"y, ee"t!veness and produ"t!v!ty o$ the publ!" se"tor

serv!"e del!very*

S!m!larly, another !mportant and sens!t!ve !ssue h!"h !s &ro!n& !nto a

hu&e "hallen&e &radually !s the pens!on l!ab!l!ty o$ the &overnment* +he

pens!on b!ll has !n"reased by 1'0I dur!n& the 2005;201F per!od reu!r!n&

appropr!ate a"t!ons to mana&e the "ont!nuous !n"rease am!dst the a&e!n&

populat!on and !n"reas!n& need o$ resour"es to "ounter the ever e.pand!n&

l!ab!l!ty !n the $uture* +he !n"reas!n& numbers o$ pens!onable Sr! Lankans

and the outlay o$ $unds on pens!ons "ould result !n ser!ous "ompl!"at!ons !n

the $uture !$ not addressed !n advan"e at least at th!s sta&e*

3!ven the un$unded nature o$ the "urrent pens!on system, the "ost !s l!kely

to !n"rease $urther over t!me, h!"h !ll be a hu&e respons!b!l!ty and a

burden $or $uture ta.payers* Hen"e, e need to look at ne strate&!es to

ensure that the pens!on "ost !ll be o$ an aordable nature to the people o$the "ountry* Honourable Speaker, assure you the &overnment


23/177

su"h a manner that "ould make the pens!on system susta!nable*

Another related area !s the ever e.pand!n& &rant o$ subs!d!es and trans$ers,

h!"h a""ount $or about 21I o$ total re"urrent e.pend!ture o$ the bud&et*

mproved tar&et!n& and rat!onal!sat!on o$ subs!d!es ould need to be

a"t!vely pursued !th !mproved transparen"y and a""ountab!l!ty to redu"e

re"urrent e.pend!ture so that more resour"es "ould be made ava!lable $or

!nvestment !n so"!al and e"onom!" !n$rastru"ture h!"h !s essent!al to

susta!n the env!sa&ed h!&h e"onom!" &roth* At the same t!me, e are $ully

aare that there are h!&hly vulnerable "!t!Cens ho need spe"!al "are and

attent!on !n our so"!ety* +he &overnment !ll "ont!nue to support and

re"o&n!se the "ause and do our best to prote"t and se"ure them $rom any !ll

ee"ts*

P*


24/177

s"ale development pro8e"ts but the real !ssue o$ "on"ern !s ho lon& !t

ould take to real!se a 8ust!able return on su"h !nvestment* A "asual

evaluat!on o$ the re"ent publ!" !nvestments !th a lon& &estat!on per!od

!th mass!ve $ore!&n debts at h!&h !nterest rates had "ast a pall o$ &loom on

the e"onomy based on the debt burden*

P*


25/177

on the nat!onal bud&et but also on the ent!re nan"!al system o$ the

"ountry* An !nab!l!ty to br!n& !n !nnovat!ve measures to "ombat the

!n"!den"e "ould be termed as a dan&erous trend* Hen"e, there !s a stron&

ne"ess!ty $or the !ntrodu"t!on o$ "orre"t!ve measures on a pr!or!ty bas!s to

make them "ommer"!ally v!able enterpr!ses rather than be!n& loss mak!n&

enterpr!ses*

/e have already !n!t!ated measures to address th!s malady* +he "reat!on o$

the !nnovat!ve #!n!stry o$ Publ!" -nterpr!se %evelopment !s a key step

$orard !n th!s re&ard* /hat e are $o"used on !s to restru"ture the

mana&ement model o$ SO-s, !ntrodu"e market based pr!"!n& me"han!sms

!n publ!" ut!l!t!es on a sele"t!ve bas!s, rat!onal!se re"ru!tment h!le adopt!n&

measures to !mprove produ"t!v!ty o$ the e.!st!n& ork$or"e, and e.plore

avenues to !mprove e9"!en"y o$ SO-s !n"lud!n& throu&h the publ!" pr!vate

partnersh!p*

Ot%e3 De8e+pent/ nd I//*e/ Cnce3nin' t%e Ecn7

Honourable Speaker, one outstand!n& a"h!evement o$ our per!od o$

&overnan"e o$ less than one year had been to "onuer !nBat!on* or the rst

t!me !n over J0 years e have !tnessed deBat!on th!s year* +h!s de"l!ne, !n

my v!e, represents a stru"tural sh!$t* #ov!n& $orard, e e.pe"t !nBat!on

to rema!n at a respe"table 2 ; JI by the end o$ th!s year* n the med!um

term too, our a!m !s to ma!nta!n !nBat!on at loer s!n&le d!&!t levels h!le

enabl!n& the Dentral (ank to ork more !ndependently toards a"h!ev!n&

th!s &oal*

Honourable Speaker, e are st!ll &rappl!n& !th !ssues "reated and le$t over

by the prev!ous re&!me* +he!r publ!"!ty on e"onom!" per$orman"e based

rhetor!" rea"hed a "res"endo at t!mes h!"h "ould be termed only as an

empty shell mak!n& a b!& no!se* (ut as you are aare, the %epartment o$

Densus and Stat!st!"s ?%DS@ re"ently publ!shed the ne rebased e"onom!"

&roth &ures, h!"h la!d many "anards to rest prov!d!n& a totally d!erent


26/177

p!"ture* n $a"t, the e"onomy has &ron only by J*FI !n 201J and F*5I !n

201F m!serly !n "ompar!son to dressed up &ures* /!th th!s ba"k&round, e

e.pe"t the e"onom!" &roth to be around )I !n 2015* /e !ll $or&e ahead

!th reneed enterpr!se and our a!m !s to a"h!eve an annual &roth o$ ';

:I dur!n& the ne.t $e years* +h!s bud&et !ll be the plat$orm and !ll

prov!de the !mpetus to ensure the planned &roth levels are a"h!eved*

+he unemployment !nde. dep!"ts a per"enta&e o$ around F*) o$ the

employable populat!on !n the "ountry* (ut, a "r!t!"al analys!s on an a&e

based bas!s br!n&s out the true !n"!den"e o$ unemployment o$ the edu"ated

youth at more than 20I* +h!s !s a tra&!" s!tuat!on* /e need !mmed!ate

remed!al measures to "ounter th!s malady h!"h should not be alloed to

$ester* /e should re"o&n!se the value o$ edu"at!on and prov!de 8ust

opportun!t!es $or the youth ho had mana&ed to atta!n edu"at!onal

standards*

Honourable Speaker, the data o$ %epartment o$ Densus and Stat!st!"s ?%DS@

!nd!"ates that the poverty !nde. had de"l!ned to )*'I* Hoever, a true

evaluat!on and a $eature !n Sr! Lanka


27/177

pos!t!ve opt!ons by the m!"ro nan"e !nst!tut!ons and pave ay $or

!mprovements o$ an !mmense ma&n!tude*

n order to develop a healthy nat!on, !t !s essent!al to erad!"ate a"ute

malnutr!t!on amon&st Sr! Lankan "h!ldren and mothers* -du"at!n& the publ!"

throu&h health serv!"es and s"hools and a "ohes!ve pol!"y to prov!de

nour!shment to the needy !s ne"essary to stren&then the eorts !n th!s

respe"t* /e have rea"hed an !nternat!onal standard !n our level o$ l!tera"y*

+he present level o$ the a"ute malnutr!t!on !nde. by "ompar!n& the data

!th South As!an "ountr!es alone !ll not be a &ood e.er"!se any more* /e

!ll have to "ompare our standard !nternat!onally beyond th!s re&!on*

Honourable Speaker, !n th!s endeavour to br!n& about a stron& e"onomy,

e have a lon& ay to traverse to !mprove our e.ternal s!tuat!on and the

(alan"e o$ Payments ?(OP@* +h!s pro"ess has to be !mplemented

part!"ularly throu&h !ntrodu"!n& measures to !mprove e.ports, rat!onal!se

!mports, en"oura&e other !nBos to the "urrent a""ount h!le !ntrodu"!n&

ne"essary re$orms !n respe"t!ve areas*

Honourable Speaker, Sr! Lanka !s a "ountry that !s endoed !th a h!&h

trade de"!t* Our e.ports have de"l!ned &radually and no stand at a

"r!t!"al 1FI o$ 3%P* Hoever, !mports have !n"reased and amount to 2'I

o$ 3%P* +he movement o$ trade o$ the "ountry as reBe"ted by the !mports

and e.ports as a per"enta&e o$ 3%P has de"l!ned to F1I o$ 3%P "ompared

to around )0I !n the m!d;2000s* +h!s de"l!ne "ould be ass!&ned to the short

s!&hted pol!"!es adopted by the Ra8apaksa re&!me e.tend!n& to a per!od o$ a

de"ade* Honourable Speaker, the e"onomy o$ our "ountry has &one throu&h

the a&ony o$ been sub8e"ted to d!verse e"onom!" theor!es o$ so "alledmaestros thus !n"reas!n&ly d!stan"!n& $rom the open e"onom!" pol!"!es and

has be"ome a more o$ a "losed e"onomy over the years* +he present

ne&at!ve s"enar!o stron&ly su&&ests that e need to propel ourselves to

promote e.ports !th a "ohes!ve approa"h duly "omplemented by

!nnovat!ve methodolo&!es*


28/177

/e also have to ensure the poss!b!l!ty o$ redu"!n& !mport e.pend!ture to a

susta!nable level* O$ "ourse am aare that the &roth pro"ess ould

reu!re that !mport o$ !ntermed!ate and !nvestment &oods, as ell as

$ulll!n& the needs o$ a nat!on!de h!&h !n"ome levels* /hat "on"erns us at

th!s 8un"ture !s the non;e.!sten"e o$ reu!red ass!stan"e to promote our

domest!" manu$a"tur!n& se"tor and !mprove the y!eld o$ a&r!"ultural

"ommod!t!es, !th an e.tended ob8e"t!ve to "apture e.port markets too*

Our ult!mate ob8e"t!ve should be to &arner ne e.port markets, e.pand

"urrent e.port markets and d!vers!$y e.port produ"ts h!lst ensur!n& $ood

se"ur!ty $or the nat!on throu&h sel$ su9"!en"y o$ $ood*

ore!&n employee rem!ttan"es play a v!tal role !n the "ountry


29/177

!ll not help us to move on and be a tour!st dest!nat!on to be re"koned by

orld standards* t !s t!me e stop ander!n& around try!n& to $o"us on

hat should be the r!&ht !n&red!ents to make Sr! Lanka hat !t as

or!&!nally knon 6the Pearl o$ the nd!an O"ean7* nstead, e need to

develop a "omprehens!ve pol!"y $rameork to develop th!s !ndustry and

e.plo!t the enormous potent!al o$ our resplendent "ountry o$ h!stor!"al

monuments and !dyll!" s"ener!es*

+he per$orman"e o$ %s has been d!smal !n the last de"ade and rema!ned

ell belo the potent!al espe"!ally !n the ba"k&round o$ end!n& the three

de"ades o$ !nternal str!$e* On avera&e, e have re"e!ved only >S 414

m!ll!on per year dur!n& the last ten years thanks to a tyrann!"al $ore!&n

pol!"y sp!"ed !th verbal !ns!nuat!ons tar&et!n& !nternat!onal leaders by the

pol!t!"al $ratern!ty o$ the last re&!me* +h!s !s totally una""eptable !n many

aspe"ts* n part!"ular, e need to attra"t more non;debt "reat!n& $ore!&n

!nvestment Bos to !n"rease the level o$ !nvestment reu!red to ma!nta!n

env!sa&ed e"onom!" &roth path based on the short$all !n domest!" sav!n&s

h!lst support!n& the &roth o$ e.ports* Honourable Speaker, the

e"onom!es o$ many As!an nat!ons espe"!ally the nat!ons ho mana&ed to

e.tr!"ate themselves $rom lon& years o$ !nternal str!$e are on the road to

e"onom!" prosper!ty due to !nBu. o$ %s* /e as a "ountry had la&&ed

beh!nd and no !s the best t!me to break the sha"kles and !nv!te $ore!&n

!nvestments to up&rade the e"onomy and a""elerate rates o$ &roth*

+hese env!sa&ed developments !n the "ountry


30/177

due to many !ssues relat!n& to ual!ty o$ seeds, plant!n& mater!als, lo

me"han!sat!on, la"k o$ e.tens!on serv!"es, h!&h post;harvest losses, lo

$arm &ate pr!"es, as ell as la"k o$ stora&e and market!n& $a"!l!t!es et"* +he

"ountry had !nvested heav!ly throu&h the prov!s!on o$ subs!d!es to develop

the a&r!"ulture se"tor and the need to s"!ent!"ally resear"h the a"ute

needs and the e.!st!n& short"om!n&s !s o$ paramount !mportan"e* +hrou&h

su"h a pro"ess am sure that the l!v!n& standards o$ the $arm!n& $ratern!ty

also "ould be up&raded*

+he pro&ress o$ the S#- se"tor !s o$ v!tal !mportan"e $or the su""ess o$ a

nat!on* As su"h more attent!on should have been prov!ded $or the

development o$ th!s most v!tal se"tor* An appro.!mately '0I "ontr!but!on to

the 3%P $rom the S#- se"tor !s somehat pos!t!ve but !th a more $o"used

approa"h the opportun!ty to !mprove the se"tor !ll prov!de s!&n!"ant

d!v!dends to enhan"e &roth rates* Honourable Speaker, am "ompelled to

state that the "ontr!but!on throu&h advan"es to develop the S#- by state

a&en"!es had been $ound ant!n& h!lst the pr!vate se"tor had mana&ed to

make a tell!n& "ontr!but!on dur!n& the past year* +he $o"us o$ the prev!ous

re&!me on S#-s too had been blurred and very l!ttle had been done toards

the development o$ same*

Honourable Speaker, the "ountry also needs a susta!nable !ndustr!al pol!"y

$o"us!n& more on an upard movement o$ the manu$a"tur!n& se"tor

!mprov!n& the value "ha!n $rom l!&ht !ndustr!al produ"ts toards the

manu$a"ture o$ h!;te"h produ"ts* Adaptat!on o$ te"hnolo&y as ell as

!ntrodu"t!on o$ !nnovat!ve opt!ons, ba"ked by proper resear"h and

development !s an essent!al !n&red!ent* Small and #ed!um S"ale-nterpr!ses ?S#-s@ !ll also have to be nurtured, developed and $a"!l!tated

to bu!ld up l!nka&es !th lar&e enterpr!ses, h!"h !ll prov!de opportun!t!es

to !nter$a"e !th lar&er supply "ha!ns* +he !nternat!onally a""epted

pr!n"!ples o$ supply "ha!n mana&ement has to be developed to up&rade our

!ndustr!es to the ne.t level o$ "ompet!t!ve e.!sten"e* t !s the v!s!on o$ our


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H!s -."ellen"y the Pres!dent to $o"us on !mprove the lo"al !ndustry by ay

o$ prov!d!n& support to develop lo"al entrepreneursh!p*

+he m!"ro nan"e se"tor had developed to be an !mportant e"onom!" dr!ver

prov!d!n& ass!stan"e to the m!"ro level entrepreneur to be nan"!ally

!n"lus!ve* t may be prudent to state that the m!"ro nan"e se"tor

"ontr!but!on to !mprove the e"onomy !n Sr! Lanka ould have had a pos!t!ve

!n$eren"e !n the loer!n& o$ the poverty !nde. dur!n& the re"ent years*

Hoever there !s a need to re&ulate the m!"ro nan"e se"tor on a pr!or!ty

bas!s to ensure that the pos!t!ve developments "ont!nue to $urther Bour!sh*

+he !mportan"e o$ the Serv!"es se"tor and the nature o$ the serv!"e se"tor

had also under&one a s!&n!"ant trans$ormat!on over the years, part!"ularly

!th the !ntrodu"t!on o$ market l!beral!sat!on, $rom small;s"ale sundry

serv!"es to h!&her sk!lled and h!&her value;added a"t!v!t!es su"h as nan"!al

serv!"es and D+* n th!s "onte.t, the pol!"y !n!t!at!ves !n areas su"h as port

and a!rport related a"t!v!t!es, tour!sm, + and tele"ommun!"at!on need to be

stren&thened* +he (us!ness Pro"ess Outsour"!n& ?(PO@ "on"ept had been !n

e.!sten"e $or a lon& t!me* +he !mprovement o$ the (PO se"tor on an year to

year bas!s had been h!&h but the overall "ontr!but!on to the 3%P !s not

s!&n!"ant enou&h by orld standards "ons!der!n& the h!&h standards o$ our

employees*

(ased on the "ont!nued lo rate o$ the unemployment !nde., !t !s essent!al

to support !mprovements !n labour produ"t!v!ty and also !n"rease "ap!tal

!ntens!ty* /!th re&ard to !n"reases !n "ap!tal !ntens!ty the role o$ the pr!vate

se"tor "ould be v!tal !mportan"e* /!th re&ard to unemployment and labour

$or"e part!"!pat!on, the $emale populat!on !s uneually ae"ted, and hen"e!mprov!n& the prov!s!on o$ "h!ld "are $a"!l!t!es and dependable publ!"

transport systems "ould help address th!s asymmetry* /e are $ully aare o$

the tremendous "ontr!but!on made by the omen o$ Sr! Lanka to ensure

that the Sr! Lanka e"onomy !s not sub8e"ted to &reater advers!ty* As su"h all

poss!ble avenues have to be e.plored to prov!de ma.!mum "om$ort $or the


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mothers o$ the nat!on to "ont!nue !n the!r pos!t!ve endeavours to bolster the

nat!on


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&overnment o$ "onsensus and &ood &overnan"e !ll be able to address the

!ssues !th aplomb and d!st!n"t!on br!n&!n& rel!e$ not only to the students

but also the employers look!n& $orard $or e9"!ent and ee"t!ve sta*

Re$orms !n the un!vers!ty system "an also pos!t!vely "ontr!bute to allev!ate

the m!smat"h beteen the sk!lls o$ &raduates and the reu!rements o$ the

labour markets, h!"h "ould be the ne"essary !nput to redu"e youth

unemployment and underemployment*

+he "han&!n& demo&raph!" prole reu!res develop!n& $a"!l!t!es to ass!st the

a&!n& populat!on h!le !mprov!n& the overall health"are prov!s!on* /h!lst a

pro"ess has to be "reated $or ut!l!s!n& the resour"e base o$ the a&!n&

populat!on $or the benet o$ the nat!on the!r needs also have to be

addressed* t !s also ne"essary to address !ssues su"h as the Dhron!" G!dney

%!sease o$ >nknon -tymolo&y ?DG%>@, the !dely !n"reas!n& !n"!den"e o$

"an"er and the spread o$ den&ue* H!s -."ellen"y the Pres!dent !s "omm!tted

and relentless by ork!n& to erad!"ate the mena"e o$ the DG%> thus br!n&

!n rel!e$ $or the masses ho are suer!n& $rom !t*

+he a&e!n& populat!on "hallen&e "aused by the slo populat!on &roth

needs to be taken !nto a""ount !th a lon& term $o"us throu&h

stren&then!n& and the !ntrodu"t!on o$ !nnovat!ve ret!rement benet

s"hemes and !th the re$ormat!on o$ the health"are se"tor* +he ne"ess!ty to

develop pens!on s"hemes $or the benet o$ the pr!vate se"tor employees

too assumes tremendous !mportan"e at least to ensure that !n the $uture,

!ssues perta!n!n& to sen!or "!t!Cens "ould be m!n!m!sed*

+he demo&raph!" trans!t!on tak!n& pla"e !n Sr! Lanka !th a &radually

a&e!n& populat!on and !n"reas!n& l!$e e.pe"tan"y unders"ores the need $orthe development o$ sav!n&s and pens!on opt!ons to "ater to the

reu!rements o$ a r!s!n& share o$ the populat!on that are rea"h!n&

ret!rement a&e* +he ur&en"y to develop these produ"ts !s !ntens!ed by the

lo !nterest rates preva!l!n& !n the market and the dependen"e o$ many

ret!rees on !nterest !n"ome*


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/!th the populat!on &roth and !mprov!n& so"!oe"onom!" "ond!t!ons, the

reu!rement o$ &ood ual!ty aordable hous!n& has also !n"reased over the

years* +h!s !s a ser!ous "on"ern !n the Dolombo d!str!"t here there !s a

relat!vely h!&h populat!on ma!nly due to !nternal m!&rat!on* +he >NP

&overnments o$ yesteryears espe"!ally dur!n& the era o$ Late Pres!dent H!s

-."ellen"y Ranas!n&he Premadasa $o"used on prov!d!n& houses $or the

people and am happy that the pro"ess has been re!&n!ted*

+he reu!rement $or hous!n& o$ the m!ddle !n"ome earn!n& "ate&or!es has

&ron over the years, and th!s se&ment o$ households !s less able to a""ess

hous!n& pro8e"ts run by the pr!vate se"tor due to asso"!ated h!&h "osts*

+here$ore, &overnment !ntervent!on !s reu!red to !ntrodu"e hous!n&

s"hemes at aordable pr!"es probably throu&h publ!" pr!vate partnersh!ps*

Also, the "urrent "apa"!ty o$ publ!" ut!l!t!es su"h as ele"tr!"!ty, ater supply

and sea&e and sol!d aste d!sposal, tele"ommun!"at!on and !nternet, and

publ!" transport !s barely adeuate to "ater to a modern e"onomy

ee"t!vely and e9"!ently* +he pr!n"!ple o$ 6#e&apol!s7 "ould be a el"ome

opt!on to address su"h !ssues !n the /estern Prov!n"e*

+he !ne9"!en"y o$ the publ!" passen&er transport system has resulted !n

!n"reas!n& numbers o$ pr!vate veh!"les on the roads transport!n& $eer

numbers o$ passen&ers per veh!"le lead!n& to heavy tra9" "on&est!on,

"aus!n& !n"reased $uel "osts to households and to the e"onomy and a

substant!al loss o$ produ"t!ve man hours* n sp!te o$ heavy !nvestments !n

!n$rastru"ture development, the !ssue o$ "on&est!on pers!sts due to the la"k

o$ &ood ual!ty and rel!able mass transport opt!ons* +here$ore, !t !s

!mportant to take appropr!ate measures to !mprove the e.!st!n& road andra!l transportat!on systems espe"!ally !n urban areas* Honourable Speaker,

e must take "o&n!san"e o$ the $a"t that ne h!&hays and b!tumen la!d

roads alone ould not prov!de an up&rade $or the standard o$ transport !n a

"ountry, h!"h ould have been the yardst!"k o$ the last re&!me, based on

the!r over;Cealous att!tude to !mprove the road netork* +he !mportant


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aspe"t !s to hat level the publ!" transportat!on system should be

developed to ensure that any "!t!Cen o$ the "ountry "ould ut!l!se the $a"!l!ty

!thout resort!n& to pr!vate transportat!on*

3!ven Sr! Lanka


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base $or $uture e"onom!" and so"!al development o$ the "ountry* n th!s

"onte.t, e have to ork hard $or ensur!n& a truly nat!onal re"overy* Our

a!m !s to "reate value and ne opportun!t!es !th e"onom!" demo"ra"y

h!"h means $reedom to "ho!"e*

+he !mprovement that e env!sa&e !ll be reBe"ted !n !mproved

!nternat!onal !nd!"es, h!"h !n turn, !ll $a"!l!tate $uture e"onom!" &roth*

+he e.pe"ted !mprovement o$ Sr! Lanka


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su"h opportun!t!es and !t !s t!me that e learnt $rom the b!tter lessons*

/e are not !n a pos!t!on to m!ss $urther opportun!t!es* /e !ll ensure the

del!very o$ hat !s presented today and let us look $orard to a $uture o$

happ!ness and prosper!ty* Our "omm!tted ob8e"t!ve !s to prov!de all Sr!

Lankans !th a better tomorro devo!d o$ any d!eren"es* Let us un!te and

rally to&ether $or the sake o$ $uture &enerat!ons and our motherland*

Honourable Speaker, e are ready, e have the !ll and e are able to

prov!de the reu!red leadersh!p to "arry out the pro&ramme that !ll be

outl!ned belo* /e !ll 8ust $or&et the past and un!te to endeavour to th!s

v!tal task*

At th!s 8un"ture , on behal$ H!s -."ellen"y the Pres!dent, Honourable Pr!me

#!n!ster, my Dab!net Dollea&ues and the &overnment, e.tend a hand o$

$r!endsh!p to all supporters o$ var!ous pol!t!"al hues to rally to&ether !n an

eort to dr!ve our nat!on $orard on the road to prosper!ty* have dep!"ted

the "orre"t status o$ the e"onomy h!"h has to re"over $rom years o$

turmo!l and !$ e do not un!te, our "han"es o$ surv!val !ll erode* 6/!thout

"urs!n& the darkness let


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Bor!"ulture, $ood !ndustry, $ru!t and ve&etable, !nland sh!n&, beauty

"ulture, ornamental sh and et"*

122* Eet !n sp!te o$ the s!&n!"ant "ontr!but!on to the e"onomy, #S#-nder th!s s"heme the '5 per"ent o$ the pr!n"!pal amount !$ !n de$ault o$

the total $a"!l!ty !ll be &uaranteed* +h!s !ll e.pand #S#-S% 100

m!ll!on $rom the A%( to support #S#- lend!n& at "on"ess!onal rates*

urther, the $und!n& s"hemes su"h as Saubha&ya s"heme and the Poverty

Allev!at!on #!"ro;nan"e Pro8e"t ?PA#P@ that Dentral (ank has !mplemented


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to help S#-s !ll be mer&ed !nto one lar&e S#- $a"!l!ty* +he mer&er o$ these

$unds !ll "reate syner&!es that !ll enable the Dentral (ank to serve the

#S#- se"tor better*

12F* Menture Dap!tal ; Honourable Speaker, today the most "ommon mode

o$ $und!n& ava!lable $or the S#-


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12)* urther, understand that the S#-S% 1,000 m!ll!on and our$armers rema!n to be a se&ment most vulnerable !n the so"!ety battered by

ever "han&!n& eather patterns, e.plo!ted by the m!ddlemen and

"onstantly lo"ked !n a battle to &et a reasonable pr!"e $or the!r produ"e* Our

"onsumers also &et a ra deal !th substandard produ"e o$ten at

e.orb!tant pr!"es* Hen"e, e re"o&n!se the ur&ent ne"ess!ty $or a reversal

o$ th!s v!"!ous trend* An out o$ the bo. th!nk!n& !s the need o$ the hour* t !s

!n th!s "onte.t, our &overnment led by H!s -."ellen"y, the Pres!dent and thePr!me #!n!ster, have $o"used the!r attent!on on $ormulat!n& a ne

a&r!"ultural pol!"y* Our pol!"y !s an"hored on the reu!rement to make the

"ountry sel$;su9"!ent !n ma!Ce, soya beans, "h!l!es, on!ons, and potatoes by

201: throu&h "rop d!vers!"at!on and produ"t!v!ty !mprovements and

&raduate !nto an a&r!;bus!ness $rom subs!sten"e e"onomy hereby e !ll

a""ess e.port markets by 2020*

12:* /e also re"o&n!se that the opt!mal strate&y to !n"rease y!elds $rom the

se"tor l!es !n stron& "ollaborat!on beteen the pr!vate and publ!" se"tors,

h!"h !ll stren&then the supply "ha!n mana&ement !n a&r!"ulture* /e

en"oura&e the pr!vate se"tor to take the lead* As su"h, propose several

measures !n"lud!n& mak!n& ava!lable a s"al re&!me to "ompan!es that


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develop seeds and plants and mak!n& ava!lable unut!l!sed or underut!l!sed

&overnment land $or a&r!"ulture on reuest*

124* Honourable Speaker, !nvestment to A&r!"ulture espe"!ally !nto

produ"t!v!ty !mprovement !s a "ry!n& need* +o th!s end, ava!lab!l!ty o$

ual!ty seeds plays an !mportant role !n ensur!n& better produ"t!v!ty* As

su"h, to en"oura&e &reater "ollaborat!on beteen the pr!vate se"tor and

&overnment to produ"e h!&h ual!ty seeds, unut!l!sed state land ould be

allo"ated as an !n"ent!ve* +here$ore, propose to allo"ate a sum o$ Rs*1,000

m!ll!on $or th!s purpose*

1J0* Hal$ ta. hol!days !ll be &ranted to "ompan!es that use dr!p !rr!&at!on

methods, &reenhouse te"hnolo&y and endeavour to !ntrodu"e h!&h y!eld!n&

seeds* At the same t!me, hav!n& re"o&n!sed the !mportan"e o$

me"han!sat!on !n produ"t!v!ty !mprovement, also propose to remove the

!mport dut!es perta!n!n& to !mport o$ a&r!"ulture ma"h!nery and eu!pment*

1J1* At the same t!me, to stren&then the supply "ha!n l!nka&es v!a

"ollaborat!ve partnersh!ps, !t !s proposed that A&r!"ulture -.tens!on O9"ers

to be perm!tted to d!ssem!nate the!r knoled&e to the pr!vate se"tor $arms

!n add!t!on to the!r normal dut!es at a $ee*

1J2* Honourable Speaker, the !ssue o$ stora&e and market!n& !s also a key

!ssue !n a&r!"ulture* n address!n& th!s !ssue, propose to set up arehouses

!th state o$ the art te"hnolo&y to address the !ssue o$ post;harvest losses,

h!"h !s about J0;F0 per"ent* +hese arehouses prov!de &ood ual!ty

stora&e $a"!l!t!es $or $armers dur!n& &lut per!ods to store the!r produ"e su"h

as paddy, ma!Ce, &!n&elly, pepper, bla"k &ram* >s!n& the re"e!pts !ssued by

the arehouse, 50 per"ent o$ the value !ll be pa!d to the $armers by thebank, thereby solv!n& the !mmed!ate "ash Bo o$ the $armer* Hoever,

on"e the pr!"es are $avourable the produ"e "ould be sold !n the market $or a

better pr!"e* +h!s method ensures the $armer !s not e.plo!ted by

uns"rupulous m!ddlemen h!le ensur!n& that $armers also reap benet $rom

the h!&her market pr!"es that !ll preva!l dur!n& the o season* Already the


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&overnment has "onstru"ted arehouses !n the %!str!"ts o$ Anuradhapura,

#onera&ala h!le the #annar arehouse !s under "onstru"t!on* +h!s

method also benets the "onsumer as pr!"e o$ the produ"e !ll be loer,

&!ven that the "ost !n"urred $rom the $arm &ate to the nal "onsumer !ll

no de"rease !th the el!m!nat!on o$ the m!ddlemen* As su"h !t !s proposed

that Rs*1,000 m!ll!on be allo"ated to "onstru"t J more arehouses !n the

%!str!"ts o$ Polonnarua, G!l!no"h"h! and Ratnapura ?-mb!l!p!t!ya@ h!le

"omplet!n& the balan"e ork o$ the #annar /arehouse*

1JJ* Honourable Speaker, "ons!der!n& the "ost o$ produ"t!on to the $armer

and also "ons!der!n& the !mpa"t to the "onsumer, propose to &!ve a

&uaranteed pr!"e o$ Rs* 50k& $or Geer! Samba, Rs*F1k& $or Samba and

Rs*J:G& $or Nadu and other var!et!es* +h!s ould help the "onsumer to &et

r!"e at Rs* )5k& on avera&e*

1JF* Honourable Speaker, the "ountry


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>nknon o$ Aet!olo&y ?DG%>@ !n key paddy "ult!vat!n& areas h!"h has

be"ome a so"!al !ssue* t has also led to ater and so!l "ontam!nat!on

lead!n& to many health !ssues and be"om!n& an env!ronmental haCard* +he

!ssue that e $a"e today !s "r!t!"al !n de"!d!n& on the $uture o$ our

a&r!"ulture pol!"y Stud!es also note that there


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ual!$y!n& payment dedu"t!on !ll be ava!lable !n add!t!on to depre"!at!on*

1J4* en"oura&e the pr!vate se"tor to opt!m!se land usa&e throu&h

!nter"ropp!n&, use o$ h!&h y!eld plants and seeds, and te"hnolo&y*

>nderut!l!sed or unut!l!sed &overnment land !ll also be leased out to $ru!t

and ve&etable $armers on reuest*

1F0* t !s also proposed to establ!sh 5 "old rooms mana&ed by pr!vate

"ompan!es $or ve&etables and $ru!ts !th!n "lose pro.!m!ty to e"onom!"

"entres s!tuated !n Nuara -l!ya, %ambulla, -mb!l!p!t!ya, Gepp!t!pola and

+hambuthe&ama* t !s env!sa&ed that th!s !ll m!t!&ate the post;harvest

losses h!le ensur!n& pr!"e stab!l!ty !n the market* propose to allo"ate a

sum o$ Rs*2,000 m!ll!on $or th!s purpose*

Di37 Ind*/t37

1F1* Honourable Speaker, the market share o$ the domest!" m!lk !ndustry !s

m!n!mal* /e a"knoled&e prev!ous &overnment


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underut!l!sed to &ro h!&h y!eld!n& &rass on an out &roer bas!s* propose

to &rant up$ront depre"!at!on on the ma"h!nery and a redu"t!on o$ !mport

ta.es on ma"h!nery and eu!pment related to the da!ry !ndustry*

1FJ* S!n"e l!u!d m!lk "onsumpt!on has st!ll not &a!ned momentum !n the

"ountry, propose to entrust the #!n!stry o$ >p"ountry Ne M!lla&es, -state

n$rastru"ture and Dommun!ty %evelopment and the #!n!stry o$ Health,

Nutr!t!on and nd!&enous #ed!"!ne to undertake a mass!ve "ampa!&n to

promote l!u!d m!lk "onsumpt!on !n the "ountry*

Fi/%e3ie/

1FF* Honourable Speaker, re&ret to note that !n sp!te o$ the "ountry be!n&an sland, e st!ll !mport almost >S% 150 m!ll!on orth o$ sh and sh

related produ"ts annually* Our lo"al shermen rema!n vulnerable to pr!"e

Bu"tuat!ons ma!nly due to seasonal!ty and la"k o$ stora&e $a"!l!t!es, "han&es

!n the re&ulatory $rameork and l!ttle a""ess to nan"e and ne markets !n

e.pand!n& the!r bus!nesses*

1F5* n keep!n& !th the &overnment


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the Spe"!al Dommod!ty Levy ?SDL@ on the !mport o$ sh to Rs* 50;* urther,

!mport duty on sh!n& nets !ll also be redu"ed*

1F:* +o $a"!l!tate the sher!es !ndustry, propose to develop and up&rade

lo"al shery harbours !th state o$ the art te"hnolo&y to !n"lude "old

stora&es as ell* also propose to allo"ate $urther Rs* '50 m!ll!on $or the

development o$ !sher!es Harbours !n Dh!la, #!r!ssa, Galmuna!,

Malvett!thura!, Gara! Na&ar and Puranaella* +hese harbours !ll also

$a"!l!tate repa!r and manu$a"tur!n& o$ boats as ell*

1F4* t !s proposed to "reate a&ro and sh pro"ess!n& $a"!l!t!es !n

&eo&raph!"al lo"at!ons "lose to the $arm &ate* +h!s !ll be "ost ee"t!ve as

$a"!l!t!es "an be shared* +hus !t !s proposed to "reate an A&ro L!vesto"k and

!sh Pro"ess!n& Park "onne"t!n& the d!str!"ts o$ Anuradhapura, Mavun!ya and

G!l!no"h"h!* propose to allo"ate Rs* 100 m!ll!on $or th!s purpose*

150* Honourable Speaker, !nland sher!es prov!de $ood nutr!t!on and a

sour"e o$ !n"ome* +h!s se"tor !s underut!l!sed* +here$ore, propose to

allo"ate Rs*100 m!ll!on to Nat!onal Aua"ulture %evelopment Author!ty

?NA%A@ to undertake pro&rammes to enhan"e sh breed!n& "apa"!ty*

151* also propose to set up an Aua"ulture Park !n (att!"aloa %!str!"t by

prov!d!n& an enabl!n& env!ronment $or the potent!al pr!vate se"tor !nvestors

to develop "oastal aua"ulture !thout "aus!n& env!ronmental de&radat!on*

Aua"ulture Park prov!des an =!nvestment ready< plat$orm $or or&an!sat!ons

that ant to set up "ommer"!al aua"ulture operat!ons* +h!s Aua"ulture

Park !ll be developed and mana&ed as a PPP* propose to allo"ate Rs 100

m!ll!on $or the !n!t!al a"t!v!t!es*

152* +he Shr!mp !ndustry has been $a"ed !th d!9"ult!es !n the !mmed!atepast h!"h has rema!ned unattended* Hoever, &!ven the potent!al !n the

shr!mp !ndustry propose to prov!de "ap!tal and ork!n& "ap!tal

reu!rements o$ the shr!mp $armers, hat"hery operators and pro"essors

throu&h the proposed A%( supported S#- "red!t l!ne* also propose to

prov!de &uarantees throu&h the S#- "red!t &uarantee $und to those ho


47/177

are en&a&ed !n shr!mp $arm!n&*

15J* +he suspens!on o$ sh e.port to -> market has adversely ae"ted our

lo"al shermen* As s sens!t!ve &overnment e are aare o$ the d!9"ult!es

$a"ed by some o$ our shermen* As su"h, the &overnment !s en&a&ed !n a

"ont!nuous d!alo&ue to &et th!s ban l!$ted h!"h ould on"e a&a!n prov!de

the a""ess to -> market* 3overnment has already taken a"t!on to !nstall

transponders to sh!n& vessels to "omply !th !nternat!onal reu!rements*

15F* /!th the a!m o$ !mprov!n& the "ontr!but!on o$ the shery se"tor to the

e"onomy, propose to !ntrodu"e a deep sea sh!n& l!"ens!n& s"heme here

one l!"ense holder !ll have to en&a&e !n "ollaborat!on !th at least 100

persons !n the sh!n& "ommun!ty*

P*+t37

155* Honourable Speaker, en"oura&e the lo"al poultry !ndustr!al!sts to

$urther !nvest $or e.pans!on and to !mprove produ"t!v!ty and ual!ty* also

en"oura&e them to take advanta&e o$ Sr! Lanka be!n& re"o&n!sed as a b!rd

Bu $ree "ountry !n the re&!on to penetrate overseas markets, espe"!ally the

#!ddle -ast* 3overnment !ll e.tend the ma.!mum support !n th!s re&ard*

P+nttin Ecn7

15)* Honourable Speaker, the Re&!onal Plantat!on Dompan!es ?RPD@ that

ere establ!shed !n 1442 have no run !ts "ourse* t !s t!me to re8uvenate

the RPDs by restru"tur!n& them !nto small mana&eable un!ts so that all

RPDs "ould seek l!st!n& !n the Dolombo Sto"k -."han&e ?DS-@* +o stren&then

the a"t!v!t!es o$ the RPDs, also propose to rela. restr!"t!ons on the usa&e o$

RPD land !n the "ult!vat!on o$ d!erent "rops* Hoever, leases o$ RPD


48/177

"ountry but the value add!t!on !s not as s!&n!"ant to the e.tent e.pe"ted*

+he !ndustry !s presently $a"!n& !ssue o$ s!&n!"ant d!p !n pr!"es !n the

!nternat!onal market* +h!s has had an !mpa"t on small and med!um s"ale

tea &roers* +here$ore so as to address these !ssues, e propose to

establ!sh a /ork!n& Domm!ttee "ons!st!n& o$ both the &overnment and

pr!vate se"tor o9"!als*

15:* +ea (lend!n& Q Sr! Lanka be!n& one o$ the ma!n tea produ"ers o$ the

orld has lost &round on value add!t!on to "entres l!ke %uba!* n the last $e

months the tea !ndustry made stron& subm!ss!ons to l!beral!se tea !mports

to Sr! Lanka* As su"h !th the a!m o$ develop!n& Sr! Lanka as a tea hub

propose to l!beral!se the tea !mports to the "ountry !th!n a re&ulatory$rameork !th a v!e to en"oura&!n& value add!t!on throu&h blend!n& et"*

note that str!"t labell!n& reu!rements !ll be made mandatory so that the

brand name 6Deylon +ea7 rema!ns un"omprom!sed*

154* Rubber Q Honourable Speaker, a #aster Plan has been developed by

the #!n!stry o$ Plantat!on !n "ollaborat!on !th the stakeholders o$ the

rubber se"tor to "arry out $eas!b!l!ty stud!es* +e"hn!"al ass!stan"e has also

be!n& obta!ned by the &overnment $or th!s purpose* +h!s plan addresses a!de ran&e o$ !ssues $a"ed by the se"tor and has also !dent!ed a ay

$orard* As su"h propose to allo"ate Rs*100 m!ll!on to the #!n!stry o$

Plantat!on to support the !mplementat!on o$ th!s plan* urther, ur&e

manu$a"tures to ut!l!se lo"ally produ"ed natural rubber $or the!r value

added produ"ts !nstead o$ the !mported rubber*

1)0* Do"onut ; +he "o"onut !ndustry too !s $a"ed !th the !ssue o$ la"k o$

"o"onuts $or value add!t!on* +h!s !s be"ause a s!&n!"ant port!on o$ the

produ"t!on !s used by our households $or $ood* As reuested by the "o"onut

!ndustr!al!sts, !t !s proposed to !mport "o"onut $or value add!t!on !n a

spe"!ally des!&nated area re&ulated by the relevant &overnment ent!t!es,

$rom here su"h produ"ts !ll be e.ported* +he proposed !mportat!on o$


49/177

"o"onuts !ll be alloed sub8e"t to str!"t adheren"e to uarant!ne

reu!rements* also propose to allo"ate Rs*250 m!ll!on to "o"onut

"ult!vat!on rehab!l!tat!on pro&ramme, h!"h !n"ludes the promot!on o$

pra"t!"es su"h as mul"h!n&*

1)1* n order to !n"ent!v!se the tea and rubber !ndustr!es, a to year ta.

e.empt!on per!od !ll be &ranted $or "ompan!es en&a&ed !n tea and rubber

plantat!on*

1)2* urther, !th a v!e to develop the tea, rubber and "o"onut !ndustr!es,

!t !s v!tal that !despread resear"h be "ondu"ted h!le su"h ne nd!n&s

and te"hn!ues be appl!ed ee"t!vely* Hen"e, propose to stren&then the

+ea Resear"h nst!tute, Rubber Resear"h nst!tute and Do"onut Resear"h

nst!tute, so that they "an en&a&e !n resear"h !n !mprov!n& produ"t!v!ty,

nd!n& ne var!et!es, and et"* or th!s purpose, propose to allo"ate a sum

o$ Rs*200 m!ll!on !th!n a per!od o$ 2 years*

1)J* Other Drops ; n support o$ these !ndustr!es, the Su&ar"ane Resear"h

nst!tute and the Palmyrah Resear"h nst!tute !ll be stren&thened $or h!"h

propose to allo"ate a sum o$ Rs*100 m!ll!on*

1)F* +he are"anut !ndustry has been ne&le"ted !n the last de"ade !th

almost no support $rom the &overnment* 3!ven the potent!al !n the !ndustry,

en"oura&e "ommer"!al "ult!vat!on o$ are"anuts and en"oura&e the

establ!shment o$ an are"anuts value add!t!on Cones, to take advanta&e o$

the e.port markets*

Spice/ nd A++ied P3d*ct/

1)5* H!story o$ the Sp!"e trade !n Sr! Lanka dates as $ar ba"k as 'th

Dentury* Hoever, Sr! Lankan sp!"e trade has not yet l!ved up to !ts

e.pe"tat!ons, thereby deny!n& the "ountry valuable e.port earn!n&s*

1))* +o address !ssues $a"ed by the sp!"e !ndustry, the &overnment !ll

"ollaborate !th the Sp!"e Doun"!l to undertake a brand!n& e.er"!se o$ Sr!


50/177

Lankan sp!"es &lobally, $or h!"h, propose to allo"ate Rs* 150 m!ll!on* n

order to enhan"e the produ"t!on and &enerate more e.port revenue,

propose to $a"!l!tate the usa&e o$ unut!l!sed $ert!le &overnment land to be

leased out to the pr!vate se"tor to &ro sp!"es su"h as "!nnamon, pepper,

"ardamom, nutme&, et"* also en"oura&e RPDs to en&a&e !n "ontra"t

"ult!vat!on, espe"!ally sp!"es su"h as pepper, "ardamom et"* $urther

propose to allo"ate Rs* 50 m!ll!on to stren&then the D!nnamon Resear"h

>n!t at the %epartment o$ -.port A&r!"ulture*

1)'* Sr! Lanka has the monopoly $or the supply o$ 6+rue D!nnamon7 !th

over :5 per"ent supply share !n the orld market* Malue "ha!n o$ "!nnamon

!s under many d!erent a&en"!es h!"h st!Bes the &roth o$ th!s !ndustry*

+here$ore, propose to set up a D!nnamon %evelopment Author!ty !th

pr!vate se"tor part!"!pat!on to br!n& all a"t!v!t!es !n the value "ha!n under

one ent!ty and propose to allo"ate Rs 50 m!ll!on $or th!s purpose*

1):* urther, !n order to enhan"e the sk!lls reu!red $or "!nnamon !ndustry,

the D!nnamon +ra!n!n& S"hool !ll be e.panded* propose to allo"ate Rs 50

m!ll!on $or th!s purpose*

1)4* 3!ven that value add!t!on !n th!s "!nnamon !ndustry !s at a m!n!mal

level, !t !s proposed to allo"ate a sum o$ Rs* 50 m!ll!on to Nat!onal S"!en"e

oundat!on to $und resear"h undertaken on "!nnamon and "!nnamon related

a"t!v!t!es*

1'0* +o en"oura&e e.port o$ sp!"es, "esses !mposed on, pepper, "loves and

nutme& !ll be removed*

Re8i8+ , t%e R*3+ Ecn7

1'1* Honourable Speaker, one o$ the "ornerstones !n our e"onom!" pol!"y !s

to up&rade the rural e"onomy* n th!s re&ard, the 1F,022 3rama N!ladar!

d!v!s!ons !ll be developed !nto 2,500 "luster v!lla&es as "omplete rural

e"onom!" un!ts* A""ord!n&ly, pro8e"ts !ll be undertaken to develop


51/177

!n$rastru"ture o$ the v!lla&es, and l!vel!hood development to empoer lo"al

"ommun!ty $a"!l!tat!n& an upl!$tment o$ the!r standards o$ l!v!n&* Lar&e s"ale

a&r!"ultural enterpr!ses !n h!"h $armers "an be members !ll be

establ!shed under the plan to develop the rural e"onomy* or th!s rural

reaaken!n& pro&ramme, propose to allo"ate a sum o$ Rs*1*5 m!ll!on to

ea"h v!lla&e h!"h !ll amount to Rs*21,000 m!ll!on*

1'2* also propose to establ!sh a ne e"onom!" Cone !n Mavun!ya, $or h!"h

propose to allo"ate a sum o$ Rs*200 m!ll!on to the #!n!stry o$ Rural

-"onom!" Aa!rs*

1'J* Honourable Speaker, rural a&r!"ulture rema!n a stron& part o$ our

e"onomy !n prov!d!n& a l!vel!hood* +he!r !rr!&at!on needs are met throu&h

small tanks and !rr!&at!on "anals h!"h reu!re ur&ent attent!on* +here$ore,

propose to allo"ate Rs*2,000 m!ll!on to rehab!l!tate small tanks and "anals

to support rural a&r!"ulture*

Ntin+ En8i3nentCn/e38tin P3'3e

1'F* Honourable Speaker, our &overnment led by H!s -."ellen"y the

Pres!dent and the Pr!me #!n!ster have pla"ed the h!&hest !mportan"e !n"onserv!n& the env!ronment !th!n the "onte.t o$ susta!nable development*

t !s !n th!s ba"k&round, that H!s -."ellen"y the Pres!dent has !n!t!ated a J

year Nat!onal -nv!ronmental Donservat!on Pro&ramme "ons!der!n& the

!mpa"t !t has on all spheres o$ l!$e h!le mana&!n& the Darbon $oot pr!nt o$

our "ountry by !mplement!n& the best pra"t!"es !n th!s respe"t* +he key

a"t!ons env!sa&ed !n th!s pro&ramme !n"lude, develop!n& and "onserv!n&

$orest reserves, "ontroll!n& env!ronment pollut!on, susta!nable land

mana&ement, b!o resour"e "onservat!on et"* or these a"t!v!t!es and $or

add!t!onal pro&rammes relat!n& to "h!ld prote"t!on, dru& prevent!on,

a&r!"ulture, propose to allo"ate Rs*2,000 m!ll!on*

1'5* Honourable Speaker, Sr! Lanka has hundreds o$ spe"!es o$ plants and


52/177

an!mals that r!vals many "ountr!es o$ s!m!lar s!Ce* Hoever, human

a"t!v!t!es and poor mana&ement pra"t!"es has no threatened the!r

hab!tats* Hen"e, propose to allo"ate a sum o$ Rs* F,000 m!ll!on to be

ut!l!sed !th!n three years to pro&rammes a!med spe"!ally at prote"t!n& !ld

l!$e and address!n& the human elephant "onB!"t*

O3nent+ Fi/% Ind*/t37

1')* Honourable Speaker, the ornamental sh !ndustry h!"h as a thr!v!n&

!ndustry on"e has no lost !ts &lory* en"oura&e the pr!vate se"tor,

espe"!ally the youth o$ th!s "ountry, to en&a&e !n th!s !ndustry and propose

to prov!de "on"ess!onal "red!t to those ho !ll venture !nto th!s !ndustry,and "onvert !t to a v!brant e.port !ndustry*

Ge nd ?e$e++e37

1''* /h!le the Sr! Lankan &em and 8eellery !ndustry has a h!story o$ over

2500 years, the !ndustry potent!al rema!ns underut!l!sed* n th!s

ba"k&round, to !mprove the !ndustry, propose to up&rade the tra!n!n&

"ourses oered by the State 3em and eellery tra!n!n& !nst!tut!ons to tra!n

both tra!ners and the tra!nees to mat"h !th the "urrent demand*

nternat!onal e.posure !n &em and 8eellery related a"t!v!t!es !ll be

prov!ded to the tra!ners atta"hed to these !nst!tut!ons h!le s"holarsh!ps

!ll also be &ranted to students ho e."el !n these "ourses*

1':* Honourable Speaker, to promote the sale o$ &ems and 8eellery and to

attra"t tour!sts, propose Sr! Lanka to hold 63em, eellery and %!amond7

au"t!ons !n Apr!l and O"tober every year* also propose a 63em -mpor!um7

to be establ!shed by the pr!vate se"tor !n Ratnapura, and $urther, to harness

the benets o$ !n"reas!n& tour!sm, pr!vate se"tor !s en"oura&ed to open

duty $ree &em and 8eellery shops at the a!rport*

1'4* n order to prote"t the orld "lass lo"al 8eellery "ra$tsman, a 10


53/177

per"ent "ess on !mported 8eellery !ll be !mposed

1:0* /!th all th!s support and en"oura&ement, e e.pe"t the e.port

earn!n&s $rom 3ems and eellery se"tor to rea"h >S% 2 b!ll!on by 201:*

G+d

1:1* Honourable Speaker, the &old !ndustry needs ur&ent a"t!on, espe"!ally

&!ven that &old pr!"es !n re"ent t!mes have plummeted* +here$ore, ta.!n& o$

&old !s superBuous* n th!s "onte.t, propose Dentral (ank to adopt a

s"heme here 50 l!"enses !ll be !ssued allo!n& !mport o$ &old $ree o$ all

!mport dut!es* +hese l!"ensees !ll trade the !mported &old to 8eellery

manu$a"tures* No person !ll be perm!tted to trade &old !thout the sa!dl!"ense*

Pr!mary ndustr!es

1:2* Honourable Speaker, pr!mary !ndustr!es are sus"ept!ble to pr!"e

volat!l!t!es that may o""ur due to var!ous !ssues* /e !ll $orm a Pr!mary

ndustry Doun"!l "ons!st!n& o$ !ndustry e.perts ho !ll "reate strate&!es to

meet the "hallen&es $a"ed by pr!mary !ndustr!es*

1:J* As stated !n Honourable Pr!me #!n!ster


54/177

the orld !th re&ard to n$ormat!on +e"hnolo&y* Su"h developments

prov!de "as"ad!n& pos!t!ve developments result!n& !n the streaml!n!n& o$

systems and "ontrols* n s!mple term e had observed that !nternet

"onne"t!v!ty has a pos!t!ve !mpa"t on e"onom!" &roth*

1:5* As prom!sed by our &overnment and as part o$ our D+ trans$ormat!on

strate&y, e have already prov!ded $ree l!m!ted /!;! !n sele"ted publ!"

pla"es* /e !ll also be e.tend!n& $ree /!;! to all our state un!vers!t!es as

ell* +h!s &overnment !s determ!ned to !mplement a "omprehens!ve %!&!tal

%evelopment Strate&y dur!n& the ne.t three years, h!"h !ll have a

s!&n!"ant !mpa"t on the e"onomy*

1:)* As su"h, !t !s env!sa&ed that by end 201: all the &overnment bu!ld!n&s

!n"lud!n& %!v!s!onal Se"retar!ats o9"es, Prov!n"!al Doun"!ls, Pradesh!ya

Sabhas, Sub Post o9"es and Pol!"e Stat!ons !ll be "onne"ted ele"tron!"ally*

+h!s !ll enable the serv!"!n& o$ around '0 per"ent o$ the!r day;to;day

transa"t!ons onl!ne*

1:'* Honourable Speaker, e also propose to !ntrodu"e a Nat!onal %!&!tal

dent!ty ?N%@, h!"h !ll ensure that all nan"!al and non;nan"!al d!&!tal

transa"t!ons to be transp!red !n a se"ure manner* N% !ll have a un!ue

number !n all other relevant data bases, namely, passports, ta. le,

"ustoms do"uments, veh!"le re&!strat!on, voter re&!sters, el$are re&!sters,

bank data bases, ut!l!ty b!lls et"* Apart $rom us!n& !t to enhan"e ta.

"olle"t!ons, !t "an also serve to re&ular!se var!ous other systems su"h as

el$are payments h!"h !ll help redu"e "orrupt!on, delays, aste and

enhan"e e9"!en"y* ?Prel!m!nary des!&n !s at Anne. M $or the easy re$eren"e

o$ the House@*1::* Our d!&!tal strate&y !n"ludes the !ntrodu"t!on o$ the Nat!onal Payment

Plat$orm ?NPP@ enabl!n& the publ!" to trans$er $unds $rom any o$ the!r bank

a""ounts throu&h the mob!le phone $or the payment o$ &oods and serv!"es

us!n& the!r N%* +he Nat!onal Payment Plat$orm !ll br!n& !n sav!n&s $or the

&overnment by !n"reas!n& e9"!en"y thereby redu"!n& "ash movement and


55/177

the "ash Boat !n the market*

1:4* propose to $orm a spe"!al purpose "ompany under the n$ormat!on

and Dommun!"at!on +e"hnolo&y Author!ty ?D+A@ to br!n& about shar!n& o$

tele"ommun!"at!on resour"es e9"!ently and to prote"t a!r aves and the

env!ronment* All the bre opt!"s oned by tele"ommun!"at!on "ompan!es

and other author!t!es !n"lud!n& the Deylon -le"tr!"!ty (oard, Road

%evelopment Author!ty and Sr! Lanka Ra!lays as ell as spe"trum and

mob!le toers are to be brou&ht !nto th!s "ompany*

140* Honourable Speaker, e also env!sa&e the !mplement!n& o$ a s!n&le

!ndo "on"ept $or "!t!Cen "entr!" serv!"es !nte&rat!n& !th the nat!onal

d!&!tal !dent!ty, !n the prov!s!on o$ publ!" serv!"es !n"lud!n& hosp!tal

serv!"es, land matters and Samurdh! payments* +he state land

mana&ement system and the Land Hub System !ll also be !mplemented as

part o$ the s!n&le !ndo "on"ept*

141* +o stren&then the use o$ D+ !n the "lassroom tea"h!n& and learn!n&

pro"ess, several pro8e"ts have been planned !n "ollaborat!on !th the

#!n!stry o$ -du"at!on* As part o$ the !n!t!at!ve, !n!t!ally 200 smart d!&!tal

"lassrooms !ll be establ!shed by 201) and another 1,000 d!&!tal

"lassrooms by 201' a"ross the "ountry*

142* Honourable Speaker, the &overnment !s "omm!tted to an Open

3overnment Partnersh!p ?O3P@* +he !mplementat!on o$ the nat!onal b!& data

plat$orm !ll $urther help Sr! Lanka to meet the reu!rement o$ O3P*

14J* propose to allo"ate Rs* 10,000 m!ll!on $or the purpose o$

!mplement!n& an advan"ed d!&!tal!sat!on pro&ramme o$ e"onomy*

In8e/tent P3tin

14F* Honourable Speaker, % !nBo !n 201F as only >S% 1*' b!ll!on h!"h

!s "erta!nly belo the re&!onal peers* n the last $e months e ere

en&a&ed !n study!n& the !nvestment "l!mate $rameork !n the "ountry* /e


56/177

have no "reated a strate&!" road map $or !mprov!n& and re$orm!n& the

!nvestment "l!mate*

145* n th!s endeavour, our &overnment !ll restru"ture the (O, the -.port

%evelopment (oard and Sr! Lanka +our!sm %evelopment Author!ty !th a

v!e to !mprove operat!onal e9"!en"y and to $a"!l!tate !nvestments* >nt!l

the restru"tur!n& pro"ess !s "ompleted, an or&an!sat!on under the name

6A&en"y $or %evelopment7 !ll be establ!shed*

14)* Honourable Speaker, e need to "onne"t lo"al and &lobal !nvestors !n

Sr! Lanka !th ne orld bus!ness "ompeten"!es* 3lobal value "ha!ns,

mana&es d!erent ra mater!als and "ompeten"!es o$ d!erent "ountr!es

su""ess$ully* /e are determ!ned to au&ment the "apa"!t!es o$ the enabl!n&

env!ronment to so as to "onne"t lo"al and &lobal !nvestors !n Sr! Lanka to

th!s "ha!n*

14'* Honourable Speaker, as enun"!ated !n the pol!"y statement made by

Honourable Pr!me #!n!ster !n th!s house, the enabl!n& le&!slat!on reu!red to

enhan"e the !nvestment "l!mate !n the "ountry !s no be!n& dra$ted* #a8or

!nvestors have shon a keen !nterest to !nvest !n the "ountry &!ven our

"omm!tment to &ood &overnan"e*

14:* /e have !dent!ed key thrust areas h!"h has a potent!al $or

!nvestment over >S% 2 b!ll!on to be as $ollosK

nO!l Renery

nReneable ener&y

nnte&rated "ar manu$a"tur!n&

n#anu$a"tur!n& Steel br!d&es $or the re&!on

nert!l!ser, manu$a"tur!n& tr!ple super phosphatenSatell!te te"hnolo&y

nA!r "ra$t repa!r and lo&!st!"al support

nnte&rated su&ar !ndustry

144* n th!s "onte.t, some o$ the key !mped!ments to attra"t!n& !nvestment

!ll be addressed as $ollosK


57/177

n propose to remove the ta. !mposed on the leas!n& o$ land to $ore!&ners

and also to "ons!der the removal o$ restr!"t!ons on onersh!p on !dent!ed

!nvestments !mposed throu&h the Land ?Restr!"t!ons on Al!enat!on@ A"t,

h!"h has been an !mped!ment $or attra"t!n& !nvestments to the "ountry*

n-."han&e Dontrols have been a key po!nt o$ "ontent!on !n attra"t!n&

!nvestments* As su"h, propose to repeal the present ar"ha!" and dra"on!an

-."han&e Dontrols A"t and !ntrodu"e an !nvestor $r!endly ore!&n -."han&e

#ana&ement (!ll ?-#(@, h!"h ould help attra"t $ore!&n Bos $rom the

SAARD and the orld at lar&e*

nn order to promote $ore!&n !nvestment !nBos, the !n"ome $rom d!v!dends

on !nvestment made by non;"!t!Cens and $ore!&n "ompan!es !n l!sted shares

throu&h !nard rem!ttan"es !ll be e.empted $rom !n"ome ta.*

n+he A&en"y $or %evelopment h!"h !ll repla"e the (O, !ll ensure that

appl!"at!ons $or $ore!&n !nvestment are "ompleted to "ommen"e bus!ness

!th!n 50 days* +h!s !ll "erta!nly be a &ame "han&er !n promot!n&

!nvestments*

200

Documents

Budget 2016 Full Speech & Proposals