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By Sandun Jayawardana

The National People’s Power (NPP) government’s “Fiscal Strategy Statement” for 2026, together with the accompanying adjournment debate, was the order of business when Parliament convened for a special sitting on Monday. According to Section 11 of the Public Financial Management Act, No. 44 of 2024, the government is required to announce a Fiscal Strategy Statement on or before June 30 of each year.

It was Labour Minister and Deputy Economic Development Minister Dr. Anil Jayantha who announced the Fiscal Strategy Statement to Parliament on behalf of the Minister of Finance, Planning, and Economic Development. Mr. Jayantha said the government’s two-part statement would be published on the Finance Ministry website for the awareness of the public. The first part of the statement deals with fiscal strategy, while the second part refers to fiscal risk. The statement will serve as a medium-term roadmap and a rolling five-year medium-term fiscal framework from 2026 to 2030. It provides a detailed discussion of the quantitative targets to be achieved through public financial management.

The minister said the statement outlined the path towards achieving these targets while minimising the associated risks.

The main reason behind the most serious economic crisis the country experienced after Independence was the breakdown in the state’s fiscal discipline, NPP Colombo District parliamentarian Dr. Kaushalya Ariyarathne stated, presenting the adjournment motion on behalf of the government.

The country underwent a massive economic crisis due to all previous governments focusing on obtaining political advantages for themselves, she claimed, adding that it was the country’s long-suffering people and children who bore the brunt of the terrible effects of the crisis.

Dr. Ariyaratne said the NPP government recognised the importance of identifying those responsible for precipitating the crisis and bringing them to justice. She said the government also understood its responsibility to ensure that such a situation did not occur again. She proposed that all parties, irrespective of whether they were in the government or opposition, should support efforts to reach the targets outlined in the Fiscal Strategy Statement.

Sri Lanka Podujana Peramuna (SLPP) Hambantota District parliamentarian Namal Rajapaksa drew contrasts between the NPP’s election manifesto and its actions while in power. “Back then, they were anti-IMF and were vociferous critics of then-President Ranil Wickremesinghe’s economic policies. They came to power claiming these economic policies were not suited for our country. But now, this government is implementing Mr. Wickremesinghe’s pro-IMF policies even more eagerly than Mr. Wickremesinghe.

“Taxes are increased like clockwork, but what are the policies this government has implemented to uplift the income of the people? What steps has it taken to strengthen small and medium entrepreneurs?” he asked.

Mr. Rajapaksa accused the government of living in a fantasy world, claiming that various investors were coming to invest, when in reality even existing investors were fleeing the country.

“You come to Parliament with a set of numbers and claim we are on track for 10 per cent growth, but in reality the ADB only projects the economy to grow by 3.64 per cent this year, but we are claiming it will be 10 per cent. Even that can be achieved if you can at least attract the investors you claim are coming, but that is not the case. Even investors already here are leaving. A number of factories were closed down recently,” he noted. The MP questioned what strategies the government had to prevent more factory closures.

Responding to his criticism was Industry and Entrepreneurship Development Minister Sunil Handunnetti. He said the opposition should actually be happy over the Fiscal Strategy Statement because through its introduction, the government was actually shackling itself. “There is no way for the government now to engage in wasteful spending. That is the important thing here, because if we went forward without a plan, we may well end up like where we were in 2021/2022,” he added.

Mr. Handunnetti said the government recognised the challenges that it would face in 2026 and 2027 through its Fiscal Strategy and Fiscal Risk Statements. Accordingly, the government has a strategy to tackle issues that arise from fiscal dangers, climate change, questions of legal ownership and local government bodies, the minister said.

Parliament will reconvene at 9.30am on Tuesday.