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01. INTRODUCTION
1.1 Honourable Speaker, exactly 21 days ago, on 8 January 2015, the people of the country voted for a change in favour of Honourable President Maithripala Sirisena. They gave a clear mandate emphasising that they desperately need a change. A change that goes far beyond party politics and individual aspirations to create a new political and economic culture in the country.
1.2 As the 19th Minister of Finance of the Democratic Socialist Republic of Sri Lanka, following the illustrious footsteps of previous Finance Ministers, it is a privilege and a pleasure to make this statement. I am sure that the provisions of this people friendly statement which will be recorded in the annals of history as the one which provided maximum benefits and concessions to the people of Sri Lanka.
1.3 The humane leadership provided by the Honourable President Maithripala Sirisena coupled with the wisdom of the Honourable Prime Minister had paved the way to create a new Sri Lanka devoid of misdeeds leading to a ‘Maithree Palanaya’. Today’s statement would be a shining example of how a people-friendly Government creates opportunities to serve the people. At this juncture, I call upon all Sri Lankans to show solidarity with our Government and rally together for a change to create a better tomorrow commencing with the ‘100-day revolution’.
Power is temporary. Official positions are also temporary. As trustees of our voting public, our duty is to honourably serve the nation. We must not forget that we are servants of the people and it is our bounden duty to be of service.
1.4 Sri Lankans are smiling again. The smiles portray freedom, liberty and courage. It is refreshing, the release from a bonding of family rule and crony nepotism. Honourable Speaker, Honourable Members of the Parliament, before I conclude I am sure that the smiles will be wider. They deserve the plethora of benefits that are to be announced. And they also deserve a future of sustenance, enjoyment and good life. All are enjoying the serene breeze of change. A change for the better, a change to be cherished. A rule of compassion – A Maitree Palanaya.
1.5 Political rhetoric is common in Sri Lanka which we had heard over the years but economic rhetoric is an uncommon phenomenon. We heard more than enough of such economic rhetoric during the last few years of rule or should I correct as misrule. This economic rhetoric churned out kept some spellbound but the truth is bitter and difficult to absorb. An economy in the doldrums needs resuscitation and rejuvenation and that is what this Government is focused on.
Honourable Speaker, this statement will be a forerunner for many more budget presentations in the future by this national Government and we would ensure that what would be presented is based on facts and not on rhetoric.
1.6 These Goebbels-inspired rhetoric conveyed to the people that Sri Lanka is the ‘Wonder of Asia,’ leaving many of us wondering of the grounds of reality relating to such rhetoric.
1.7 National day of independence is six days hence from today on the 4th of February the day we gained freedom from the British. The 8th of January 2015 will also be remembered as the day the nation ‘Regained Freedom’. Freedom from family rule, freedom from corrupt rule, freedom from crony miscreants, freedom from bad governance, regaining of independence of the judiciary, police, public service and freedom from misrule where the rule of law was abused at will. As such, it is our bounden duty to guard and foster the freedom regained.
The Hundred Day Revolutionary Programme will provide the foundation for a new era and provide a brand new meaning to ‘Freedom and Liberty’. Independent commissions, right to information, constitutional amendments etc. which are clearly enumerated within the Hundred Day Program will provide a significant backdrop for the nation to enjoy fruits of freedom thus regained.
1.8 The family rule did not only damage the economy of Sri Lanka but also tore apart the social fabric which knitted together Sri Lankans as a pious nation. Drug barons, casino operators and ethanol kings made the future of our children bleak. The voice of the people was muzzled and silenced. But some who could express themselves at will, coined novel phrases such as ‘economic assassin’ as additions to the vocabulary. Disseminating the facts and evidence available, we could say that there are many such economic assassins who ensured that a selected few will enjoy and pillage the wealth of this great nation whilst a majority will suffer.
1.9 Following the presidential election, a Maithripala-Ranil National Unity Government was formed with the participation of the members from a majority of the parties which represent the Parliament. This has created a unique situation in the post-independence history of our country.
Today, I am proud to say that, with these initiatives, we have been successful in showing an alternative way to the nation and we are marching slowly but steadily along that path. It is a path to compassionate Maithri governance, path to a stable country, a path to prosperity and more importantly, a path to freedom, humanity and dignity.
1.10 On behalf of Honourable President, Honourable Prime Minister and the Government, I as the Minister of Finance, would like to thank and salute all of you, the clergy, public servants, pensioners, farmers, teachers, health sector employees, the fishing community, young voters including students, labourers, entrepreneurs, estate workers, trishaw drivers, transport sector employees, the self-employed, members of the armed forces, Police and civil defence force, and the general public in all ethnic and religious groups in Sri Lanka who came forward bravely amidst various intimidations, and cast their vote in one voice for this noble effort.
1.11 Your contribution is indeed salutatory as the degree of intimidation, excessive utilisation of state resources and utilisation of free issues of various items to entice the voting population, by the previous Government had been beyond average imagination. In the presidential election campaign, we made a promise a major commitment to the people in this country. We promised that after coming in to power, we would implement a 100-day revolutionary programme to provide speedy solutions to the burning problems of the country and its citizens.
1.12 We promised to implement specific measures to provide relief to the people by reducing the rising cost of living, which we consider a key burning issue of the country. The country needs solutions to counter the burden of cost of living which had deprived many people of this nation the basic necessity of food at required standards. A poverty level of 6.7% and malnourished children of 21.6% are not statistics which are progressive. We will ensure that the change envisaged and voted democratically will address these burning issue and provide relief to a degree hitherto unheard of and will be improved over the years.
1.13 The appointment of the Special Commissions to investigate allegations of massive corruption in the preceding period, establishment of Independent Commissions and making required appointments, introduction of the National Audit Bill and Right to Information Bill, introduction of a National Drugs Policy and creation of a Parliamentary system instead of the Executive Presidential system are among other key promises that we made under this programme.
The degree of corrupt practices reached a zenith during the last few years of misrule and we expect the nation to bear with us as we will have to patiently go through the due process in bringing the corrupt miscreants to face the consequences of their misdeeds through judicial means.
1.14 We are now in the process of implementing these proposals. By looking at what we have done so far during the last 21 days, you could make a judgment on our performance and the commitment. We want to emphasise that we are working with a clear vision towards achieving the objectives within the 100-day revolutionary programme. The Statement presented today is also another important step forward in that effort.
1.15 Our Government is people oriented and is focused on providing relief on a priority basis. Relief provided in the form of lower fuel prices prior to this Statement is a perfect example. We have managed to provide the nation with the highest-ever reduction of fuel prices at any given time and I am at a loss to understand why the previous Government did not envisage such revisions for the benefit of the people.
1.16 Before I present our proposed measures to provide relief to the general public as well as other revenue and expenditure proposals, I would like to elaborate on a few points about the bubble that had to burst, Budget that has already been approved by the Parliament for 2015, economic performance of the country and related areas.
02. THE BUBBLE
HAD TO BURST
2.1 Sri Lanka had gone through a period of economic disorder. The statistics until a few days back provided a different picture. A façade of political rhetoric coupled with unrelenting economic bravado created a rosy picture. The weapons of the so called economic maestros consisted of manipulated charts and graphs.
2.2 Much spoken of a ‘Wonder of Asia’ and ‘hubs’ of varying descriptions. The average people did not fully fall into the trap of lies and deception. They did observe some Hubs which were focused on destroying the nation. The ‘kudu hubs,’ ‘ethanol hubs’ and ‘casino hubs’ continued to grow. The young generation, the future our beloved country, so many innocent children had fallen prey to the wiles of the drug barons, ethanol kings and casino operators.
2.3 The Stock Exchange became the laughing stock of the experts who knew stock trading. Pumping and dumping was the order of the day whilst the small timers had to face the music. When interest rates were reduced the hierarchy invited the elderly people to invest in shares. Knowing very well the consequences, the hearts of the people who matter did not melt. Even the poor pensioners suffered. The super-rich ‘stock market barons’ continued to fatten at the expense of the poor.
2.4 The circus continued. The clowns played their roles to perfection. The trapeze artists swung to and fro. The economy continued to crumble. The façade artists’ modus operandi was to dress up the truth. The bitter truth was camouflaged with sweetened falsehoods. “Lies, damn lies and statistics” – the phrase ideally fitted the picture. GDP and public debt moved benignly in their rich vocabulary.
2.5 The system of ‘crony economics’ created a segment of the society which was ultra-rich enjoying a life of supreme luxury. They were flaunting not only their ill-gotten wealth but their muscles too. A mere two per cent of the entire population continued to prosper at the expense of others. What of the balance 98%. They were requested to tighten their belts way back in 2005 and they had to continue. Their families fell apart due to economic hardships, jewellery pawned, family heirlooms sold to ensure that home fires continued to burn. Some were facing abject poverty. Naval guards had to be stationed at the Matara Mahanama Samaraweera Bridge and at the Kalutara Bridge to save our mothers and fathers, brothers and sisters from jumping into river to end their lives, stricken with unbearable poverty.
2.6 The economic jargon, high-flown language, political and economic rhetoric continued to reverberate louder than ever. Astrologers too played their part conjuring the path of celestial objects at their whims and fancies. The objective positively singular, merely, to foster and nurture the mere 2% of the nation. 8 January 2015 was the day of reckoning. A whiff of freedom, a sweet fragrance of change wafted across the nation. 
2.7 The officials and economic experts have looked into the figures and now the economics of deceit and falsehood had surfaced. The bad news is that economy is in a sad state, and the good news it is not beyond resurrection and is in safe and sound hands. We had managed to decipher the correct status of the economy which is been explained in detail. We will also investigate and recover ill-gotten gains irrespective of the category politician, stock market whiz kid or a mere drug dealer. The period of immunity is over for the cronies and the clans, justice supreme will overcome the wicked and the wrongdoers.
2.8 Finally the bubble had to burst. Our Government will now take stock of the situation, prime up the economy and move forward with finesse. We promise the nation that the correct picture will be portrayed at all times.
2.9 Hon. Speaker, Hon. Members of the Parliament the goodness of this ‘Maitree Palanaya’ will bring in a new dimension of justice and fair play to this nation. I wish to present two typical examples. After the results were announced at the previous election held in 2009, whilst the victor rejoiced the vanquished was jailed. This time the victor was relieved that he was spared the agony of been jailed whilst the vanquished received a free helicopter ride at the expense of the people to reach his home town at Meda Mulana.
2.10 The Presidential oath read out at the Independence Square on 9 January by Honourable Maithripala Sirisena had cost a mere Rs. 60,000 whilst the previous oath taking ceremony in 2009 had cost several millions of public funds.
03. OBJECTIVE OF
THIS STATEMENT
3.1 Today’s Statement may be a new phenomenon in the public finances in our country. We have heard about Vote on Accounts which were presented on many occasions to this Parliament previously when a general election had been announced in order to allow the new Government to present a full year Budget incorporating their new policies.
3.2 However, the Statement that we are making today is an absolute necessity as we have made a significant change in the structure of the line ministries in the Government. As you are aware, we have reduced the number of ministers from 71 to 31, reflecting a significant deviation from the governance of the previous regime.
The line ministries have been structured to secure the maximum outcome with minimum expenditure in formulating a Cabinet of Ministers. We need to reallocate the resources to newly-created ministries and seek the approval of the Parliament to formalise the new structure.
With the approval of Parliament, I propose to authorise the Secretary to the Treasury to provide detailed budget estimates to ministries and spending units based on the approved expenditure ceilings specified the in Appropriation (Amendment) Bill. In addition, as I would be explaining in the latter part of my statement, there are a number of new revenue and expenditure proposals as well, particularly to provide concessions to the public.
3.3 These changes and proposals will have to be accommodated in the original Budget 2015, which was presented in 24 October 2014 and approved by the Parliament on 23 November 2014 which needs to be approved by this Parliament to seek the necessary legal provisions for the same.
04. THE BUDGET 2015
4.1 The original Budget 2015 expected total revenue of Rs. 1,594 billion which consisted of Rs. 1,400 billion of tax revenue and Rs. 194 billion of non-tax revenue. Total expenditure and net lending was Rs. 2,990 billion of which recurrent expenditure was Rs. 1,465 billion and, capital expenditure and net lending was Rs. 685 billion. The estimated deficit in Budget 2015 was Rs. 521 billion or 4.6% of GDP. 
4.2 I should say that this deficit is related only to Government revenue and expenditures. However, we have repeatedly shown to this Parliament and discussed even outside Parliament over the past several years that this deficit does not reflect the real burden of the public finances of the country today as it does not take into account many budgetary operations of the Government.
4.3 This façade of duplicity has to be removed and the actual position has to be made known to Honourable Members of Parliament and the general public. We do not intend to mislead neither the Honourable Members of Parliament nor the general public in our endeavour to ensure good governance.
4.4 Some of the critical issues where the public debt is not adequately presented are listed below.
a. This deficit does not reflect by any means the contingent liabilities that the country has incurred over the past few years. The Government has given Rs. 524 billion as Treasury Guarantees by the end of 2014, which mainly include guarantees given to commercial banks to implement infrastructure developments projects by State Owned Enterprises (SOEs) (Annex I). If these liabilities are not honoured by the relevant SOEs, the Government will have to pay them.
b. The outstanding debt of SOEs to the banking system of Rs. 593 billion as at end 2014 also to be reflected in these numbers. This also includes the impact of US$ 60 million or Rs. 7.8 billion of the Hedging Transaction of Ceylon Petroleum Corporation (CPC), which has already been paid. It has been estimated that the total loss to the Government due to the hedging transaction could be about US$ 120 million (Rs. 15.7 billion). This could be one of the most obnoxious transactions ever recorded in the history of commercial operations in Sri Lanka with the end result adversely impacting the people.
c. The Government budget deficit also does not include foreign borrowings made by SOEs for infrastructure projects. The total outstanding of these borrowings as at end 2014 was US$ 2,356 million or Rs. 308 billion. These have been borrowed to finance the Puttalam Coal Power Project, Hambantota Port Development Project and Mattala International Airport Project (Annex II).
4.5 If we add the Treasury Guarantees, SOEs debt to the banking system and the amount of foreign borrowings for the projects implemented by SOEs, the budget deficit could have been much higher than the published numbers.
4.6 Now you could observe the magnitude of the deficit that we have inherited from the previous regime. This is the unhealthy legacy of the previous Government which we have had to inherit and from where we have to commence our journey. 
4.7 Few more years of such practices would have made our country a contender to be labelled as an economically failed nation. Once again I wish to thank all those who made this change possible as if not, our great nation also would have ended up as a banana republic, where the economies had been ripped apart and pillaged by corrupt rulers.
4.8 According to the provisional data, the outstanding debt of the Government as at end 2014 was Rs. 7,373 billion. This reflects a per capita debt of Rs. 357,233. However, if we include the three items that I indicated above, the total debt will increase to Rs. 8,817 billion. Naturally, the per capita debt will also increase to about Rs. 427,220. Again, you can see the magnitude of the burden that has been created by the previous Government on the people of this country.
4.9 I should emphasise the fact that all these debts will have to be paid by the innocent people in this country, not only the present generation but generations to come. We are proud of our legacy as a country with a history of over 2,500 years, but how could we be proud of the legacy of debt created by the last Government? The question also arises as to whether it was necessary and prudent? The previous rulers should be ashamed of the manner in which the monetary issues had been handled where generations will be called upon to pay back debt sought at the whims and fancies of a selected few.
4.10 As a percent of GDP, the total Government debt as at end 2014 will be about 74.4%. This level of debt is still high in international standards. With the three items that I indicated above, total debt to GDP ratio will further increase to 88.9%.
4.11 The majority of the allocations in the Government Budget were mainly confined to a few under the previous regime. However, in the revisions that we have made to the Appropriation Bill for fiscal year 2015, we have taken measures to rectify this.
4.12 All these incidents indicate the need for strong and innovative measures in the future to avoid the repetition of such things and reduce the budget deficit and outstanding debt of the country.
4.13 Before I present our new proposals, I would like to indicate two key factors i.e. economic growth and nominal wages and the debt repayment burden.
05. ECONOMIC GROWTH AND NOMINAL WAGES
5.1 We know that Sri Lanka is currently identified as an economy with relatively higher economic growth among the emerging market economies, and characterised by low levels of inflation and unemployment.
5.2 This century had provided enormous opportunity for countries in the Asian region to grow, overtaking the western world as the key economic drivers of the world. Giant strides made by China and India have shown the world the ability of Asian countries to move up and we should critically analyse whether Sri Lanka should have reached a better standing based on our potential as a nation with a literacy rate of over 90%, the highest in the Asian region.
It should not only be highways, air and sea ports and a host of buildings that constitute growth and stability that could be sustained. What is the status of agriculture, industry, services and industry related exports?
The norm is that within an overall development plan, there should be provisions for road networks and other infrastructure requirements. There was no such development plans and ad hoc projects had been formulated, once again at the whims and fancies of a selected few jeopardising the country’s economy. Focus of attention to develop selected townships to glorify and promote political dynasties drained the economy almost beyond remedial options.
5.3 Sri Lanka’s annual real economic growth averages around 7 % during the last three years, while it expanded by around 15 % annually in nominal terms during the same period.
This has resulted in a substantial growth in per capita income, which was estimated to be about US$ 3,646 or Rs. 477,600 in 2014, which is comparable to middle income economy levels according to international classifications.
5.4 However, the growth in national income in nominal terms has not reflected the improvements in standard of living of every citizen. We have to look at an average citizen and observe whether he had reached the level of prosperity the per capita income depicts. If not there is a missing link. This Government will ensure, as our Honourable Prime Minister had often stated, that we would bring about an economy where the pockets of all citizens will be filled without limiting the benefits to a dynastically privileged few. We do not believe in the prosperity of a few families and a selected few but glad tidings for all stakeholders i.e. all citizens of mother Lanka.
5.5 Some nominal wages have increased at a lower rate than the others. For instance, public sector nominal wages have increased by less than 10% on average during the last two years, and once it is adjusted for inflation, the annual growth in real wages is about 5%, which may not reflect sizeable improvement in the purchasing power of the households. In addition, real wage may have deteriorated for some segments in the labour market.
5.6 This situation warrants some adjustment in both wage level and price level. With the salary increase of Rs. 10,000 per month within the 100-day revolutionary programme of which Rs. 5,000 will be increased from February 2015, and the balance by June 2015, the nominal wage growth of Government employees is estimated to increase by about 47% in 2015 compared to 2014. The real wage growth also will increase by 40% in 2015 compared to the previous year under the low inflationary situation.
5.7 With the reduction of prices of identified goods and services, the positive impact on household real incomes may be higher for all households. As such the future prospects for all Sri Lankans will be enhanced within a framework of good governance and equal opportunity.
06. DEBT REPAYMENT BURDEN
6.1 We know that the debt service payments create a huge pressure on Government budgetary operations. In 2015 alone, the interest payments amount to Rs. 425 billion and debt repayments amount to Rs. 840 billion, making a total debt service of Rs. 1,265 billion.
6.2 This will be about 77% of the revenue in the revised Budget for 2015. This has significantly limited the space in the Budget to provide many essential services to the public. I would like to highlight followings in terms of debt repayments;
a. The debt repayment to bilateral and multilateral agencies as well as on commercial borrowings and export credit will be US$ 1,394 million in 2015. Total debt repayments related to these sources will be about US$ 8,461 million in the next five years. This includes the repayment of international sovereign bonds, which amounted to US$ 5,000 million by end 2014, in which a substantial amount will be maturing during the 2015-2020 period.
b. The foreign investments in Treasury Bills and Bonds will be gradually retired and there could be premature sales of outstanding foreign investment in Government securities amidst rising yields in international capital markets.
c. The majority of recent loans obtained for large scale projects may start repayment this year onwards after the initial grace period which is about 3-4 years on average.
d. We still have to pay defence related loans of US$ 15 million to suppliers. In addition, there will be hedging transaction related payments, which we are still unaware of the exact magnitudes.
6.3 These debt repayments will amount to substantial sums in aggregate terms increasing the foreign currency outflows over the coming years. As such, the burden of meeting debt repayment requirements in the short-term may fall on the level of international reserves. The interest rates of the foreign borrowings made in the last few years are given in Annex III.
6.4 This again depicts how vulnerable we are today as a country and more critically the precarious status of the national economy. Hence, there is a strong need to increase export earnings and reduce short-term debt obligations with longer tenure debt to ease the pressure on fiscal operations as well as external sector stability.
07. EXPENDITURE PROPOSALS
7.1 Today’s statement could be termed as one of the most important exercises of the ‘100-Day Revolution’. For me, I would call it the ‘100-Day Challenge’. The planned benefits to the people of Sri Lanka that we envisaged went beyond the contents of the ‘100-Day Program’ promised during the election campaign.
7.2 The outflows had to be matched with adequate revenue proposals to ensure that we do not increase the debt burden. The excessive expenditure based dynastic image building, coupled with wanton waste that was prevalent, as provided in the original Budget, made life easier for the team that formulated this most valuable statement.
7.3 Honourable Speaker, Members of the Parliament the people of Sri Lanka who went through a period of untold hardships during the last decade, due to the spiralling cost of living, will be in for a pleasant surprise. We are positively focused on easing the burden on the poorer strata of the society. They are also stakeholders of our nation. The time has come for the rich and the super-rich to make a telling contribution towards nation building. As we are well aware, certain individuals and organisations did receive concessions beyond reasonable yardsticks from the previous regime to garner profits excessive and extraordinary.
7.4 As I indicated earlier, the number of ministers has reduced to 31 from 71 in the previous regime. This measure alone will help us to save about Rs. 2,500 million annually, which can be utilised for much more productive purposes.
7.5 It also signifies the level of resources that the previous regime has wasted for mere political intentions. This is the difference between them and us, who are focused about the well-being of the people of this country.
Public sector salary revision
7.6 Now I would like to formerly announce one of our major proposals within the ‘100-day revolution’. We promised the public servants in the country that we will increase their salaries by Rs. 10,000 per month and initially Rs. 5,000 will be provided in February 2015.
7.7 I am happy to say that all permanent public servants of over 1.3 million got Rs. 3,000 in January and will get their February salary by Rs. 5,000 and will get the balance in June 2015 thus honouring the promise given by us.
7.8 Honourable Speaker, this revision may be recorded as the highest ever salary increase granted to public servants of Sri Lanka. It is a special privilege for me to propose this increase to public servants the vanguard of administration of our nation.
7.9 I call upon the unions, public servants, and all stakeholders of the public sector to improve the productivity to be on par with the standards in the Asian region.
Private sector wages and salaries
7.10 I wish to make an earnest request and a humble appeal to all private sector employers to assist the Government in national reconciliation by ensuring compliance. Such a positive endeavour I am sure will create a vital impact on narrowing and hopefully eradicating the gap between the haves and the have-nots. Human capital is the most important tool and the best asset in your company. Therefore, let us have a contended workforce which will help increase the productivity and have a pleasant working environment.
7.11 We understand the great difficulties that the private sector undergoing. However, considering the input cost reduction especially on energy, we urge the private sector to consider an increase of Rs. 2,500 per employee per month, linking to productivity. Furthermore, the employer may utilise any value arising out of non-cash benefits such as provision of food cost as a part of proposed increase. The contribution made by private sector employees also needs to be mentioned in glowing terms and hopefully the employers will ensure a positive outcome. It is the most opportune period for the engine of growth, the private sector of the country, to prime up their human resource, the life blood of their institutions.
7.12 The new Government is working to get the GSP+ facility back. I am happy to say that Honourable Prime Minister and the Minister of External Affairs are working seriously on this matter. The country has enjoyed this concession for several years and it has undoubtedly assisted country’s industrial exports. Unfortunately the previous Government did not look at this positively and we as a country, had to suffer a lot.
7.13 The loss of this facility has resulted in a loss of about US$ 5,000 million in the past seven years. Not only that, the number of job opportunities lost is countless and even today, many people are suffering from the loss of their jobs due to the removal of this facility, which has resulted in lost incomes and employment thereby driving them in to poverty.
7.14 It was also a serious setback in the export side, which had serious implications on the trade balance, balance of payments and external reserves.
7.15 Our plan is to set up new factories and restart the factories which were shut down during last many years with the renewal of the GSP+ facility. The private sector will get a huge boost due to this.
7.16 Honourable Speaker, at this very moment, the European Union (EU) has suspended the import of fish and fishery products from Sri Lanka, which became effective from 15 January 2015.
7.17 Although the EU allowed Sri Lanka to address the concerns by implementing international maritime law obligations and putting in place an efficient vessel monitoring system and a sanction scheme for deep sea fleets three months before this import ban came into effect, the previous Government did not take it seriously and hence did not take any effective measures regarding this.
7.18 However, as this is an important issue which is particularly linked with our fishing community and fish exporters, we as a responsible Government are taking every possible measure to get this ban removed and resume fish exports to the EU. Once resumed, it will provide many new opportunities to the private sector to enhance their activities in the lagging regions.
Revision of pensions
7.19 The retired public servants of Mother Lanka had contributed immensely towards the betterment of the country and it is time that they are provided with just means during retirement.
7.20 As such, we propose to increase the amount of pensions for retirees of the public service since we are very concerned about their well-being. I would like to propose that they will receive an additional Rs. 1,000 in their monthly pension from April 2015. About 550,000 pensioners will benefit from this revision of pensions and we will have to incur an additional Rs. 4,900 million on this proposal.
Samurdhi welfare scheme – Enhancement of Samurdhi allowance
7.21 From the inception, there was no proper scheme to identify the desired beneficiaries of the Samurdhi system. A comprehensive survey would be undertaken to identify the needy segments of the society. The future payments of the Samurdhi allowance would be carried out through a more efficient method to facilitate the minimisation of an expenditure outlay of over Rs. 10 billion per annum, an enormous administrative expense entailed with the programme.
7.22 Samurdhi beneficiaries will be granted enhanced monthly payments with an increase of 200% with effect from April 2015. As per the commitment enumerated within the Hundred Day Revolution.
7.23 Samurdhi/Divi Neguma banks will be integrated with Regional Development Bank in order to enhance access to finance in the rural areas.
Concessionary fixed deposit interest rates for senior citizens
7.24 We know the low interest rates in the market have created serious repercussions to the senior citizens in the country. There is a significant number of senior citizens who sustain themselves with the monthly interest income that they receive on their deposits. As we were much concerned about them, we made a commitment to increase the interest rates on their deposits under the ‘100-day revolution’.
7.25 I am happy to announce that the senior citizens will be receiving a higher interest rate of 15% per annum for their savings up to a maximum level of Rs. 1 million for funds deposited in commercial banks.
A healthy motherhood – Assistance to maintain health standards
7.26 A nutritious and healthy society is an asset to a country especially when the issue relates to motherhood. However, the level of nutrition among the low income earning pregnant mothers is much lower than the affluent and the middle class strata of the population in the country.
7.27 Assistance will be given through an electronic teller card banking system and the grant will be disbursed over a period of two years. The extended time period will ensure that disbursed funds will be rationally utilised for the purpose intended. We will seek the assistance of the Honourable Minister of Children’s Affairs to guide and assist the officials in guaranteeing that the beneficiaries will receive all benefits expected relating to the grant. This grant will be focused on the welfare of the new born children and mothers.
7.28 In order to ensure the children who will be born to such mothers are healthy, we promised to provide an allowance of Rs. 20,000 for pregnant mothers to supplement their nourishment under the ‘100-day revolution’.
7.29 In order to ensure that Rs. 20,000 is not utilised in an irrational manner, a method of utilising the funds would be communicated through a circular.
Waiver of advances granted to farmers
7.30 As an agriculture based nation, we will never forget the valuable contribution made by farmers to foster the economy. We have reliable information that they borrow from many sources, particularly from banks by pawning their valuables, to undertake their agricultural activities. We know that in the recent past, they had to undergo many difficulties as their crops were damaged as a result of natural disasters and hence, many of them were unable to repay their loans to the banks.
7.31 We are concerned about these farmers who were not able to repay their borrowings to the banks. That is why we propose to provide relief to them under our ‘100-day revolution’. I am pleased to announce that as a relief measure, a 50% waiver will be provided for a maximum loan capital of Rs. 100,000 on the loans advanced to farmers by commercial banks and presently overdue. This will cost Rs. 2,500 million to the Government Budget.
Guaranteed prices to boost agricultural economy
7.32 The provision of a guaranteed price for selected items is also considered an important measure to further energise the farmers. This would reduce the uncertainty of those who are involved in respective fields. Accordingly, the following guaranteed price structure will be implemented.
a. The guaranteed purchase price of paddy will be increased to Rs. 50 per Kg. commencing from the 2015 Maha season. Depending on the variety, moisture contain and the quality, paddy will be graded. Stringent purchasing procedures will be implemented to avoid corruption and misuse which is the foremost intention of the Government.
b. The guaranteed purchase price of potatoes will be increased to Rs. 80 per Kg. commencing from the next harvest.
c. The guaranteed purchase price of tea leaves will be increased to Rs. 80 per Kg.
d. The guaranteed purchase price of rubber to be Rs.350 per Kg.
The guaranteed price scheme for tea leaves and rubber will be implemented subject to a comprehensive evaluation of the industry within a short span of time. This process will facilitate the origination of a suitable mechanism to introduce the proposed guaranteed purchase prices listed above.
Hand tractors at concessionary prices
7.33 A concerted effort will be made by our Government to reduce the price of Hand Tractors for the use of farming community in a focused effort to upgrade the agriculture sector. A comprehensive evaluation of the present tax and other cost factors will be taken into account in arriving at a feasible price. Hand tractors offered to the farmers at a lower price would not only make them efficient but also promote the concept of mechanisation of agriculture.
7.34 We are also happy to state that the fertiliser subsidy will continue. However, the quality of fertiliser will be upgraded to meet international standards. We will be socially responsible unlike the previous regime, which contributed to the CKD.
7.35 We will be consulting the farmer community and relevant cooperative societies for the best
