Address by President Ranil Wickremesinghe of Sri Lanka at the Opening of the 5th Session of the 9th Parliament on February 7, 2024

Profitable disaster administration, whether or not on a world scale, inside nations, or in particular person lives, hinges on adeptly dealing with the state of affairs and navigating via it. Reflecting on the timeless knowledge of Lord Buddha’s sermon, ‘Attadeepa – Viharati’—be a lamp unto you—we discover a profound lesson. Initiating the method of overcoming a disaster should start inside oneself. All through historical past, no disaster has been conquered solely via pointing fingers at others.

It’s crucial that we change into the guiding mild for our personal selves, correcting our ideas and views. With out private enchancment, there may be no collective good for our nation, and the disaster stays unsolved. True systemic change can solely happen once we, as people, bear transformation, transcending mere pronouncement about altering the system.

In emphasizing this precept, I goal to current a number of key insights about our previous, our current, and the longer term we aspire to attain, earlier than this august meeting.

The reminiscence of the state our nation discovered itself in throughout February 2022 remains to be vivid in our minds. Nonetheless, as of February 2023, commendable efforts have led to a substantial enchancment within the nation’s situation, surpassing the state it was in throughout the identical month the earlier yr.

Permit me to spotlight the important thing financial indicators from February final yr thus far:

Inflation, which stood at a frightening 50.6 per cent final yr, has dramatically decreased to a mere 6.4 per cent in the present day.

Meals inflation, beforehand at an alarming 54.4 per cent, has seen a exceptional decline to simply 3.3 per cent.

The trade fee has proven constructive motion, with a greenback value Rs. 362 prior to now and now valued at Rs. 314.

Regardless of a 3.7 per cent price range main deficit in 2022, we achieved a major turnaround in 2023, attaining a main price range surplus. This marks the sixth occasion of Sri Lanka attaining such a surplus within the 76 years since independence.

In 2022, the stability of funds deficit was 1.9 per cent of GDP, however by the tip of 2023, the nation achieved a surplus, a milestone not seen since 1977.
The rate of interest, which was a excessive 28 per cent in 2023, has notably dropped to 12 per cent.

The 52 important statutory our bodies of the federal government, going through a lack of Rs. 745 billion by the tip of 2022, turned a revenue of Rs. 313 billion by September 2023.

It’s noteworthy that these establishments are affected by an enormous debt burden. On April 12, 2022, Sri Lanka declared its incapacity to pay its money owed, with overseas trade reserves hitting zero. The present state of affairs is vastly improved, with overseas trade reserves standing at $4.4 billion by the tip of December 2023.

In a quick span, our strides in tourism have been noteworthy. The vacationer arrivals for 2022 was 194,495, a determine that soared to 1,487,303 in 2023, with over 200,000 vacationers arriving in January this yr.

All through 2023, we carried out a number of constructive measures, together with lifting the gas restrict imposed by the QR code. Steady electrical energy provide is now ensured, no fuel scarcity, the agriculture sector faces no scarcity of fertilizers and there’s no scarcity of gas for fisheries group. Import restrictions for all items excluding automobiles have been eradicated, enabling the seamless importation of important meals and drugs. Moreover, there are not any shortages within the provide community for uncooked supplies essential to manufacturing industries.

Regardless of a 7.8 per cent contraction in GDP by the shut of 2022, our financial trajectory reversed. Experiencing six consecutive quarters of development from 2022, the third quarter of 2023 marked a 1.6 per cent growth.

Our financial system, initially plummeted with unprecedented pace, has undergone a exceptional turnaround at rocket pace, resembling a V-shaped restoration igniting hope. It may be acknowledged as a major achievement. The restoration of collapsed economies is usually fraught with extended challenges and hardships. However, not like different nations, we’ve got managed to rejuvenate our financial system swiftly, evading enduring difficulties and pains.
Let me offer you an instance,

That is starkly exemplified by Greece’s financial collapse in 2009, resulting in protracted struggles and struggling because the nation endeavoured to recuperate.

The challenges they confronted throughout that interval had been formidable, and it took over a decade for them to recuperate the financial system.

Nonetheless, attaining such exceptional feats in a quick span is actually a world document for our nation, marking such form of a record-breaking breakthrough.

The financial downturn persevered all through 2022, making notable financial progress in 2023 not a random prevalence. This progress was a deliberate consequence of implementing a nuanced financial coverage crafted with meticulous care and foresight.

I persistently communicated the insurance policies, measures, and plans we formulated, overtly addressing this Parliament and the general public on varied events. Each step was taken with transparency, offering alternatives for dialogue and debate each inside and outdoors Parliament, leaving nothing hid.

My decision-making was pushed by the nation’s development, not political acquire. Even when going through disadvantages, selections in favour of the nation weren’t shied away from. Whereas sure teams within the parliament opposed these selections, the bulk, no matter private political motives, supported them for the good thing about the nation. I’m assured that, in time, they are going to be acknowledged and appreciated by the folks.

Our journey progressed methodically. Within the 2022 interim price range, I highlighted the nation’s essential state of affairs at the moment, aiming to avert an financial collapse. By the 2023 price range, a number of proposals had been introduced to information the financial system in the direction of stability, showcasing a step-by-step method to our overarching targets.

The 2024 price range proposals mark the preliminary stride in important reforms geared toward propelling financial improvement. Regardless of challenges and occasional reluctance, the financial reforms and insurance policies we’ve got instituted have set us on the trajectory in the direction of a steady financial system, incomes recognition from worldwide monetary establishments for our focused method.

Having emerged from a darkish financial abyss, we now understand the sunshine on the finish of the tunnel. The financial system, as soon as within the intensive care unit, has been rescued from its essential situation.

The extreme financial disaster of the previous subjected many voters to unimaginable hardships—job losses, revenue supply depletion, missed enterprise alternatives, and disenfranchisement, most acutely felt by the widespread folks. Presently, we’re progressively restoring misplaced alternatives via initiatives just like the ‘Urumaya’ program, aiming to reinstate folks’s rights.

Below the “Urumaya” program which was initiated day earlier than yesterday, we concentrate on two elementary targets. One is lands and the opposite is housing.

The British colonial authorities, via the Waste Lands Act in 1897, disadvantaged folks of their land rights, a grievance unaddressed by subsequent post-independence administrations. We’ve initiated the method of granting them land rights, which is about to learn over two million folks.

Enlisting two million new landowners into our society marks a historic and a revolutionary stride—an honour to the enduring struggles of farmers striving for self-sufficiency in rice manufacturing.

Roughly one-third of our nation’s populace faces inadequate revenue and lacks appropriate housing. Our dedication entails taking measures to supply these people with each revenue sources and a legacy of housing.

Full possession of greater than 50,000 homes can be granted for low revenue city residents.

Launching onto a profitable financial improvement path calls for particular consideration to all areas of the nation, particularly for poor and weak communities. Regardless of going through a extreme financial disaster, we’ve got persistently taken steps for the welfare of our residents.

This yr, Asvasuma is anticipated to learn 2.4 million folks, aiming to uplift the dwelling requirements of these on the lowest socioeconomic ranges. The unprecedented monetary subsidy accompanying this program stands as a historic milestone in our nation. As a method of help to low-income people, every household will obtain 20 kilos of rice through the festive season of this yr.

As of August 2022, the President’s Fund was non-functional, leaving over 9,000 pending functions for medical assist. A further 4,000 functions had been obtained from August to December. We addressed the backlog, disbursing Rs. 915 million to 4,917 sufferers all through 2023. Now, fee processing time has been considerably diminished, with funds made inside three to 5 working days. Efforts are underway to extend all medical assist from 50 to 100% this yr. Alongside these advantages, a scholarship program for college kids has been carried out via the President’s Fund.

Pensions have been raised whereas the federal government workers are supplied with a particular allowance, and steps are being taken to resolve the wage discrepancies for presidency retirees from 2016 to 2020 within the close to future.

As authorities income will increase, we’ll take measures to extend advantages for the folks accordingly.

The tangible development we’re experiencing is clear within the present societal discussions. Not way back, conversations cantered across the challenges posed by energy cuts, demanding uninterrupted electrical energy. As we speak, the discourse has shifted to electrical energy payments. Beforehand, considerations had been raised concerning the exorbitant black market value of petrol, with discuss of spending days in gas queues. Now, the main target is on new oil firms investing in Sri Lanka. Points associated to the shortage of greens have remodeled into discussions about costs of carrots. The prior shortage of paper for guide printing is now changed by discussions about VAT.
Certainly, VAT poses a burden for a lot of, and we’re not oblivious to this truth. We’re systematically addressing this subject. In 2022, there have been 437,547 registered tax payers, a quantity that surged to 1,000,029 by the tip of 2023—a formidable 130 per cent improve. Because the tax community expands, the burden on people and organizations will diminish.

Persevering with our financial reforms, we goal to alleviate the tax burden because the financial system stabilizes. There’s additionally room for a possible revision of the VAT proportion.

All these endeavours are undertaken amid a considerable debt burden. All through the previous, concerted efforts have been made to formulate a strategic plan for repaying this debt. The home debt restructuring plan has been efficiently executed as step one, and a coverage settlement for restructuring has been reached with overseas collectors because the second step. Negotiations with personal collectors are presently in progress.

Anticipated within the preliminary six months of this yr, the intricate restructuring plan is poised to type the foundational framework for restoring our financial system to normalcy. It should function a pivotal juncture in assuaging the burden of debt.

Projections from the IMF, World Financial institution, and Asian Growth Financial institution recommend a possible 2% to three% financial development for this yr, and our efforts are geared in the direction of elevating this to five% by 2025.

In 2021, we initiated operations to rescue the nation from impending challenges, with 2022 surpassing some points of the previous yr. Each aspect of 2023 exhibited enchancment over 2022, and 2024 is forecasted to be much more promising. Whereas progress continues on this trajectory, we aspire for a extra exceptional 2025.

Nonetheless, contentment with this progress alone just isn’t enough. Regardless of not at the moment repaying any loans from overseas international locations and exterior business bases, the upcoming restructuring indicators a shift in the direction of debt reimbursement. To fulfil these obligations, each rupees and {dollars} are important.

By September 2023 our whole debt burden was US $ 91 billion. It should take a substantial time frame to settle this debt. In an effort to meet our debt, we have to supply the funds regionally. It’s crucial that we generate this revenue; in any other case, we danger falling into the debt lure as soon as once more.

On account of debt restructuring, we will cut back the annual fee. However, even below such a state of affairs we’ll nonetheless need to pay round US$ 03 billion per yr. We can not proceed to be paying on this method. We have to create a stability between our revenue and expenditure. Our price range deficit is at an acute stage. This yr authorities income stood at Rs. 4,127 billion and expenditure was Rs. 6,978 billion. Out of this Rs. 2,651 billion is for debt reimbursement. This clearly signifies our debt burden.
Because the Fifties, our method concerned intensive borrowing, encompassing all points of governance. Leaders and the populace grew to become accustomed to this debt-centric financial system, with concessions offered on varied fronts, together with free rice distribution, subsided electrical energy payments, academic endeavours, and the proliferation of presidency jobs. Guarantees made throughout elections had been diligently fulfilled upon assuming energy.

We should break away from the shackles of a debt-driven mentality to safe the way forward for our nation.

The elimination of the debt financial system is paramount, and we have to concentrate on constructing a sturdy, impartial financial system.

Quickly growing export revenue and overseas funding are essential elements of this transformative journey.

Our on-going financial reforms lay the inspiration for making a aggressive, digital and inexperienced financial system.

Central to this course of are the eradication of corruption and social modernization.

Whereas corruption is extensively acknowledged as a scourge in our nation, it’s essential to acknowledge {that a} systematic and formal algorithm is important to fight it. Shouting about catching thieves is ineffective with no sturdy authorized system and a scientific method, executed by educated officers.

Merely bringing corrupt people to justice just isn’t a complete answer; prevention is equally essential. Strict guidelines to discourage corruption and extreme punishments for offenders should work in tandem.

The enactment of the Anti-Corruption Act is a major step on this course, and its neutral implementation is clear for all to see.

I wish to draw the eye of this Honourable Home to key areas of focus in our financial and social modernization efforts.

Tourism is a sector ripe for improvement, and we’re actively engaged on enhancing each human and bodily sources to draw extra vacationers, with the objective of reaching 5 million guests yearly.

Our nation boasts ample renewable power sources, presenting a major alternative for financial acquire.

By leveraging state-of-the-art worldwide expertise, we’re able to remodeling into an energy-exporting nation, significantly within the manufacturing of inexperienced hydrogen and inexperienced ammonia, for which preliminary plans are underway. Local weather change is a precedence concern, and we’re taking preliminary steps to ascertain an Worldwide Local weather Change College in Sri Lanka to spearhead analysis efforts.

Whereas agriculture has been a longstanding focus, out-dated strategies persist, hindering modernization.

We’re launching a program to double and triple of productiveness agricultural land within the dry zone over the following three to 4 seasons. Coverage selections have been made, and this system will start this month, beginning with one divisional secretariat chosen from every district. This initiative goals not solely to spice up productiveness within the dry zone but in addition to liberate moist zone land for different business crops.

A whole bunch of hundreds of acres acquired below the Land Reform Fee within the seventies stay unproductive, resulting in a major waste of sources. Varied authorities businesses, similar to Janavasama and State Plantations Company, personal these lands, with billions of public funds spent on sustaining them.

To handle this subject, we’ve got devised an efficient plan, leasing these lands to native entrepreneurs for long-term business cultivation, together with the choice for overseas expertise and funding. This technique goals to remodel underutilized lands into sources of overseas trade, contributing to financial improvement.

The Visitor of Honour at our Independence celebrations was the Prime Minister of Thailand who spoke concerning the agricultural revolution in his nation. Impressed by the agricultural revolution in Thailand, the place fashionable expertise is successfully utilized, we search to boost productiveness in agriculture and generate overseas trade.

One other essential focus is on attracting overseas funding to speed up financial development. Recognizing the challenges confronted by overseas buyers in Sri Lanka, we’ve got formulated a complete plan to simplify the funding course of, eliminating bureaucratic hurdles and corruption dangers.

Environment friendly processes for permits and amenities in some international locations are accomplished inside two or three days, protecting points similar to land, electrical energy, water amenities, and entry roads. Using pc programs ensures a clear and authorized course of.

Constructing on these worldwide requirements, the groundwork for establishing an Financial Fee aligning with present wants is now accomplished. This fee oversees a complete set of funding legal guidelines and packages.

Schooling and Well being are very important focus areas, which wants our consideration. Out-dated legal guidelines from the 2nd World Battle period not meet the wants of the fashionable world. To handle this, new practices and laws, aligned with worldwide requirements, are being launched for training and well being. The objective is to fashionable

Disaster administration is important in any side of life, from world points to non-public experiences. Overcoming a disaster begins from inside ourselves, emphasizing the significance of private development and enchancment. This content material highlights the numerous financial progress of Sri Lanka from February 2022 to 2023, showcasing appreciable enhancements in varied financial indicators. The President additionally mentioned plans for uplifting the youth, reforming the financial system, and sustaining worldwide relations. He urged the parliament to unite in nation-building efforts, prioritizing the welfare of the nation over private agendas. He emphasised the necessity for collective discussions and invited enter from worldwide monetary establishments. Finally, the handle urged unity and collaboration in working in the direction of a brighter future for the nation.