PARLIAMENT

Govt to strengthen economic boon in country

Parliamentary Corr

Speaker Chamal Rajapaksa presided when Parliament met yesterday at 9.30 am. After presentation of papers and oral questions, the House took up several Orders under the Excise (Special Provisions) Act, the Finance Act, the Securities and Exchange Commission of Sri Lanka Act, the Environment Conservation Levy Act and the Sri Lanka Export Development Act for debate.

Economic Development Deputy Minister Ranjith Siyambalapitiya

The Government has presented several Orders in Parliament today with the intention of strengthening the ongoing economic boom in the country. We wanted to introduce a simple tax structure instead of a complicated tax system that prevailed in the country, earlier.

Many sectors such as the transport, telecommunications and financial will receive a boost with the introduction of a revised tax system. This Order will reduce the taxes imposed on imported vehicles which are utilized for transportation of school children.

Over 30,000 public servants will also be entitled for tax relief on vehicle imports. We have already reduced the tax by 50 percent which was imposed on vehicle imports. In order to stabilize gas prices in the local market, tax reliefs have been granted. The cess levy imposed on the import of raw materials utilized for local production too has been removed to give due recognition for local production while discouraging alternate products being imported to the country.

Many incentive schemes have been introduced to increase rubber and coconut production in the country, with the aim of encouraging local entrepreneurs to produce value added products, so that they could be sold at high prices in the international market.

All those orders are expected to boost the economic growth in the country.

Lakshman Kiriella UNP

Unemployment is rampant throughout the country, while campaigning for the upcoming Local Government elections, we have seen a number of youth suffering due to unemployment in villages. A number of laws had already been introduced by the Government, but it had not been able to provide proper solutions to the adverse unemployment problems. Several Free Trade Zones have been set up since 1977. A number of projects under the Mahaweli scheme had been initiated and thousands of jobs created through these projects. This has vastly benefited to alleviate poverty in this country. But not a single new factory has been established after 2005.

Today the people are suffering due to unemployment, the high cost of living and malnutrition. The Government has been unable to control the country under normal laws. The government has imposed many laws, which have prevented many investors coming to Sri Lanka.

M A Sumanthiran (TNA)

The country's main problem is the rising cost of living. It is the responsibility of the Government to control the CoL by following the correct fiscal policies. It is good that development activities were progressing in the country. It is useless carrying out development activities without solving the problems that affect the ordinary masses.

While many roads and bridges were being constructed, thousands of people in the country live without houses. We welcome the move made by the Indian Government to construct 50,000 housing units in the North. But even after a lapse of one year, not even a single house had been built. How long will it take to complete the project since many people were facing great difficulties without permanent houses in the North. Have the government been able to prepare even the beneficiaries list at least?

Coconut Development Minister Jagath Pushpakumara: Today we still see the dark shadows of the LTTE. MP Sumanthiram who spoke prior to me, made me sad to listen to his comments on the people in the North who were released from the grips of the LTTE by the Government. We see people attending to their day to day activities peacefully.

Your wrong comments is an attempt to create a distorted image of Sri Lanka before the international community. You were the cat's paws of the LTTE.

We have witnessed a large number of projects initiated in the North for the development of coconut cultivation.

The coconut harvest has come down during the period of December and January, but had doubled in the months of April and May.

Although fertilizer had been provided at a concessionary rate to the farmers, the concession had not been provided for coconut cultivation. The Government has decided to provide a pack of fertilizer valued at about Rs 4,500 to the coconut cultivators at a concessionary rate of Rs 1,000.

Deputy Speaker Chandima Weerakkody takes the Chair:

In 1992, the UNP handed over the management of some public estates to the private sector. But the private sector made profits without developing the estates. But our Government later took over and made them profit earning estates.

National Languages and Integration Minister Vasudeva Nanayakkara: There are a number of Orders and Regulations being discussed today which were in the budget proposals.

The cess tax was imposed to provide security to local production. If that objective was not achieved, it was pointless to impose taxes.

Normally the cost of local production is higher than what was imported. If the Government does not get itself involved in such matters, there would be anarchy in the market which will affect local production.

A H M Azwer takes the Chair: Developed countries are self satisfied with their food, medicine and housing, whereas we are not. That is the difference between undeveloped and developed countries. So we should take measures to protect local producers.

Sujeewa Senasinghe (UNP): The people were hoping that after the elimination of terrorism, the country would see the light of economic development. But their hopes have not been realized so far.

Industry and Commerce Minister Rishad Bathiudeen: The Government has taken steps to revise the import and export cess structure with the objective of protecting the local industry and agriculture sector.

It has also aimed at promoting local manufacture of value added products by discouraging exports in raw materials.

The basic objective of the Government by imposing cess on imports under the Export Development Board Act was to discourage the import of non-essential items and to protect local farmers and manufacturers. In the past, the local manufacturers had to face severe competition due to the flow of cheap, low quality goods into the country.

Therefore, the imposition of import cesses would help provide strong protection to local manufacturers and farmers which would lead to strengthening the local economy. A reawakening of our industry had been observed as a result of the development activities carried out by the Government and also due to the protection acquired by the imposition of cess.

According to statistics released by the Census and Statistics Department, the agriculture sector has registered a growth rate of 6.2 percent while the industrial sector has registered a high growth rate of 8.8 percent in the third quarter of 2010. While developed countries were facing an economic setback, the progress achieved by our industrial sector was commendable.

Ajith Kumara (DNA): Today the people are struggling to make a living due to rising prices of essential commodities.

The most common promise made by the President after the war was giving relief to the people by reducing the prices of essential items.

Earlier it was very demeaning to obtain loans from other countries.

But today, the entire country was run on local and foreign loans. We have been obtaining more and more foreign loans for the past 55 years.

The debt obtained locally and internationally has been doubled during the five-year regime of President Rajapaksa.

The Government imports many crops such as fruits and vegetables, which could be easily grown locally. We also import canned fish although our country is surrounded by the sea. This has resulted in the outflow of a large sum of foreign exchange.

Therefore it was necessary to facilitate farmers by fulfiling their requirements. Farmers need only land, seed and fertilizer for their agricultural activities.

Adjournment Motion

External Affairs Minister Professor G L Peiris stated in Parliament that it was a timely need to build up a close relationship among the Parliaments of the countries in the region.

He made this observation in response to an adjournment motion moved by UPFA MP Professor Rajiva Wijesinghe.

We must create a mechanism to exchange our views among other countries. We have decided to give more opportunities to young Parliamentarians to exchange their views with Parliamentary members of other countries. Young members are spearheading to the leadership. Therefore, they should be aware of foreign affairs through friendship associations. "We should be very profound in our aspirations. Then only can we achieve good results. Interrelationship between countries were vital to strengthen close ties," Prof Peiris said.

John Amaratunga (UNP): It was necessary to maintain strong foreign relations with other countries. These countries helped us when we were in difficult situation. Please take note to instruct our mission aborad to maintain close ties, he said.

A H M Azwar (UPFA): We expect to create friendship associations with many foreign countries in the near future. Then only can we be able to achieve good aspects through foreign relations.

Perumal Rajadurai takes the Chair

J R P Sooriyapperuma (UPFA):

The economies of developed countries have collapsed as a result of the global economic recess.

But Sri Lanka still stands on its feet without a problem until today. Our country also defeated terrorism during that period. Is it not a miracle?

In the sea off Hambantota, more than 200 ships make their way to and fro daily. More than 90 percent of global productions are transported in those ships. With the construction of the Hambantota port, Sri Lanka is going to benefit immensely, he said.

Consumer Affairs Minister Johnston Fernando

Most of the members spoke on the price of commodities. We clearly say the price of goods was lower compared to 2009 and 2010.

But the prices of vegetables were high due to natural disasters. Nobody talks of the farmers who were the most affected by the floods, but only of vegetable prices. This government provides concessions to farmers. Ranil Wickremasinghe was reluctant even to talk about farmers, he said.

During the ceasefire, the UNP could not provide relief, to the farmers, but this Government provided fertilizer at Rs 350, while humanitarian operations were in progress.

The UNP thought the humanitarian operations would fail. They said we could not build up a stadium. But we have constructed one in Sooriyawewa, he said. The UNP is waiting until this Government fail but it wont happen.

Deputy Speaker Chandima Weerakkody takes the Chair.

Finance and Planning Deputy Minister Geethanjana Gunawardena:

We were able to maintain the average economic growth rate at 6 percent over the last 6 years and presently to increase it to 8 percent while we were combatting terrorism successfully. It was a remarkable achievement by this government. Sujeewa Senasinghe spoke of our foreign policy. We have built up our bondage with countries, but not with persons. That is the reason that we were able to defeat terrorism.

Amidst the conspiracies by European countries against Sri Lanka, they also spoke of prices of goods. Most of the food producing countries were affected by natural disasters. Due to the concessions that were granted by the Government, the people were living without any problems. The amount allocated for concessions in 2005 was Rs 3,308 million, but it was further increased to Rs 10,620 million.

These reliefs were given to farmers and small scale businessmen. The Orders and Regulations were passed without amendments.

Parliament adjourned until 1 p.m. today.

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[Houses, lands used by Forces, handed back]

Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena yesterday stated that 472 civilians', lands, houses and other institutions in North that were used by the forces have been handed over to the owners.

The Minister also stated that the forces would handover the rest to the civilians in due course. He added the civilians willingly have allowed to remain in these areas.

The Minister further stated that 1205 lands and houses in Kilinochchi were being used by the forces. He made this observation in response to a question raised by TNA MP A Vinayagamorthy.

Minister Gunawardena further stated that the Army used 1129 private lands and houses while the Navy used 35 private lands. He added that the Air Force too used 32 private lands and houses.

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[Revenue for 2009 Rs 37,800 m]

More than 4,200 million cigarettes and 2,270 millions Beedis have been consumed in Sri Lanka during 2009.

It was noted in an answer tabled in Parliament by Finance and Planning Deputy Minister Geethanjana Gunawardena.

The reply also stated that a revenue of Rs. 37,800 million was collected as tax imposed on cigarettes during 2009. The reply also contained that 4,100 million cigarettes and 2,270 million Beedis were produced locally in 2009.

The answer was tabled in response to a question for oral answer raised by UNP MP Ravi Karunanayake as he was not present in the House.

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