In Parliament on Wednesday from our Parliamentary correspondents

"We have not resorted to populist hand-outs but cleared the path for long-term development"

Mangala Samaraweera (Minister of Post and Telecommunications) said the budget presented by the able deputy Finance Minister will carry forward the policies that secured the economy of this country from economic turmoil. IMF has referred to our country as the "Island of tranquility in an ocean of turmoil." The opposition leader suffers from bouts of amnesia. I would help revive memories by quoting from 'Asia Week'. An article in this reputed journal written on the 13th year of UNP rule referred to the Sri Lankan economy as one in 'Shambles'. This inflation was 20 percent. The style of governance then were looked down internationally.

We have managed to change this negative image abroad and sought international support for dismantling terrorist activities abroad.

In this budget we have not resorted to populist handouts but cleared the path for long term development. We have given pride of place to technology while ensuring year 2000 compliance. Under the millennium park programme 25 parks with one in each district will be set up. First three parks under this programme will be established in Jaffna, Matara and Anuradhapura next year. These parks will facilitate video conferences, and give our youth an opportunity to learn in the areas of new technology.

We must have peace in this country. Let us take on Sinhala and Tamil chauvinism and political extremism and relegate them to the dust bin of history. Tamil leaders must rise against the ugly face of Tamil chauvinism just as we have fought against Sinhala chauvinism. It is unfortunate that political opportunists are trying to fan the flames of Tamil chauvinism referring to the President's interview in South Africa.

We have redefined political traditions. Let us all join hands and work to usher in an era where our soldiers will be able to dance with the boys and girls of the now war ravaged areas.

R. Sampanthan (TULF-Batticaloa District) said we are living in a country which is becoming smaller.

Countries are getting together in groups for economic co-operation. Others form unions for defence.

When there was declaration here that our country is not affected by the East Asian crisis it shows some complacency on our part. Some of our products such as rubber goods and plastic goods could suffer as a result of the East Asian crisis. It was too early to say that we are safe from the effects of the crisis.

Though our aim to attain political and economic stability are laudable we have not succeeded in achieving them.

The rest of the country cannot be insulated from the effects of the war in the North-East. Economy has been strained by the war. War also remains a deterrent against investment. Cost of reconstruction and rehabilitation are high.

The people of the North East will no longer bear up the evil effects of the war.

The ethnic crisis and the war constitute one issue and resolution of the problem should receive priority treatment if the private sector is to be the engine of growth. This is a war of attrition. Nobody will win it nor will anybody lose it.

We of the TULF will be voting against the budget at its second reading. This is a principled decision. We will not hesitate to take principled decisions.

We honestly hope that the war could be brought to an end if a dialogue is started with the LTTE with a third party facilitation.

Nandimithra Ekanayaka (Minister of Forestry and Environment) said today we are in a position where we cannot avert a increase in defence expenditure. We have to strive to find an end to the war. But how can we get Prabhakaran to change his stand, as he thinks to his intention of creating a separate state by engaging in a meaningless war that is imposing hardships on the people. The budget is not an attempt to get the lakhs of people living under poverty to vote for us by giving handouts. This budget reflects the policies of this government that has taken measures to make the poor people of this country acquire skills for their sustenance throughout their lifetime.

The Opposition Leader has a good plan. But he will not be able to see fruition as he will not be the leader when they come back to power in the middle of the 21st century.

We have launched nutrition programmes to combat malnutrition in this country. The proposal to increase railway fares was intended to improve the railways but we had to withdraw the proposal because we did not want to impose burdens on the people. The opposition is trying to gain undue mileage from it. This budget is a solid formulation of policies that will benefit the people of this country.

D. Siddharthan (DPLF-Vanni District) said no economic development has taken place in the North East. In the LTTE controlled areas the suffering of the people is immense. They cannot cultivate. They cannot do fishing. They do not get fuel. The only known thing to the people of the province is hunger, deprivation and status of being refugees.

There is no response either to the demand for opening of the Chemmani graves.

The proposals of the budget bring no consolation what-so-ever to the people of the North-East.

Distribution of food in the uncleared areas is unsatisfactory. Ministry officials do not accept the figures of displaced persons provided by the Government Agents. Officials are of the view that the figures of Government Agents are those given by the LTTE.

It is true that such situations cannot be avoided as long as there is a war. But at the some time the responsibility of looking after the people of these areas lies with the government.

A situation has now arisen that peace cannot be restored without talking to the LTTE. With the help of a facilitator you should try to find a political solution and bring back peace to the country.

Before you go to the LTTE you must have a solution. Both government and opposition must talk to each other and formulate proposals for the resolution of the problem.

Imthiaz Bakeer Markar (UNP, Kalutara District) : This budget is a disappointment to the people of this country. This budget shows that the government does not have solid policies. The budget proposals are been withdrawn page by page. Soon only the covers would remain. I personally regret that G. L. Peiris had anything to do with it.

You have missed a chance of fulfilling the election promises you gave to the people. The Opposition Leader's speech provided proof of a stable plan to the people to solve their problems. The government should take the present problems including the graduates unemployment seriously. What happened to Jeyaraj Fernandopulle's cabinet paper? The government should provide a more detailed report of their plans to provide housing to shanty dwellers.

I would like to quote Minister Ashraff's statement about the budget. He said there is nothing for jubilation nor golden in this budget speech in the year we are celebrating our golden jubilee of independence.

You promised the people one thing and do something else. It is like turning right after giving a left-hand signal.

Ranil Wickremesinghe is the 'light of Asia'. An able leader of a party that will establish a government in year 2000.

Keep your long-term plans aside and address the burning problems today. It's a pity that the Deputy Minister is getting hammered for a budget he did not devise.

Jeyaraj Fernandopulle, Minister of Plan Implementation and Parliamentary Affairs said: The Opposition Leader made in the morning a speech what looked like a throne speech. He was in a dreamland.

The Opposition Leader was shedding crocodile tears for the Tamil community. The UNP has forgotten how it treated Tamils during its 17 years rule.

The Opposition Leader was against expenditure on the war. The UNP's stance only supports the LTTE.

Had the UNP any programme to employ graduates. During President D. B. Wijetunga's time the UNP government got graduates register themselves with the government and you paid them Rs. 2,500 allowance as graduate trainees. You did not give them employment. We had to find them employment.

The budget provides for the creation of jobs. Provision has been made to replace 55,000 slums in the city of Colombo.

We will remain in power for 20 years.

V. Sennan (Badulla Dist. CWC) said: The middle income families and the poor workers and farmers will not benefit from the budget. The postage has gone up.

The members of parliament who are the representatives of the people pay only 15 rupees for six meals here. At least you should pay more.

When the price of liquor is raised people tend to consume illegal liquor. After this budget I think even I can present a budget.

The profits from plantations has not been used to develop facilities in the plantations. The problems you are facing in the North and East will erupt in these areas if you don't take measures to look into the problems. Appoint a committee to look into this.

We are not settlers in this country as stated by the President. There should be no discrimination between the plantation workers and villagers.

You must have a official languages policy. You are neglecting us and separating us without us asking for separation. We cannot control our people if you don't look into their problems.

Richard Pathirana (Minister of Education and Higher Education) : One member of UNP in an interview to a Sinhala daily has said that we should devalue the rupee. He is tipped to be the Finance Minister in the UNP government. But if he is to be the Finance Minister I suggest he polish up his knowledge in economic fundamentals. What will happen if we devalue the rupee, price of goods would rise. Infrastructure that is vital to the economy especially telephones are provided to subscribers amidst healthy competition. We have taken measures to alleviate malnutrition and unemployment.

The interest paid for massive loans acquired during the previous regime is eating up a sizable amount of the government's budget. We have to strive to keep the percentage of interest paid for loans taken by the UNP at a low level. We are trying to establish stability in the economy.

Why are the graduates suffering now. It is because the education system was not changed to suit the needs of the country. That is why we are doing it now. The private sector complains that the products of the universities can't fit into the private sector.

Ronnie de Mel (UNP, Matara District) winding up the debate for Opposition said: The budget presented by Prof. G. L. Peiris was a comedy of errors.

There were two pictures relating to the preparation of the budget. One was that of the President, with coffee mug and non-working computer by her side. Suggesting that she was preparing the budget burning the mid-night oil.

The other picture was that Prof. Peiris who was putting the finishing touches to the budget.

Two persons were claiming authorship of the budget like two children fighting for an ice cream.

The budget began as a comedy and a comedy of errors and ended up in a tragedy.

The change that you made to the proposal to raise rail fare by 25 percent could have been done by taking away the page and substituting a new corrected page before being brought to the House.

This has happened when Felix Dias Bandaranaike and during my time.

The Budget does not give anything to the fixed income earners, the middle income earners or the poor, but the super rich. Prices of everything from motor cycles, trishaws, and push cycles has been raised. But the price of luxury cars such as BMWs, Mercedes and Volvos have been reduced. That is why I am telling you that this is a Budget for the super rich. You have sacrificed the entire country to the 10 blue chip companies.

I have been witness to about 40 budget speeches in this house and budget speeches in the French parliament, the English House of Representatives and the German Bundastag.

Budget had been my hobby and Budget is not a new thing to me. I myself have prepared 13 Budgets.

In this Budget the government has failed and failed completely. It is a dying government's gasp as I called it.

The blue book, with which you went round the country was infact was so attractive to the people that the people fell in love with it.

Now when will you implement the promises that you gave in it. At least by the year 2001 when you go for elections will you be able to implement them.

You must never prepare a Budget without all the money needed to implement all its proposals. Such a Budget will be like Hamlet without the prince.

When the UNP came into power in 1977 July, we had already prepared our economic programme. When I presented my first Budget I had all these programmes in place.

Before presenting my first Budget in Novembr 1997, in one months world trip obtained IMF under writing our new programme of liberalisation. British assistance for the Victoria project, Japanese assistance, German assistance for Randenigala project.

When I finally presented the Budget I had all the money I needed.

During our first four years we launched the Kotmale, Maduru Oya and Victoria projects, all gigantic development projects.

Also during the first four years of UNP government we launchd the Port Development Project, the Airport Development Programme, built three national hospitals.

We introduced for the first time mobile telephones, we introduced the Television for the time. We abolished the existing permit system that was in force during pre-1977 regime and the out flow of workers increased. You were only free wheeling on what we did. Can you tell me what you have done during your first four year.

You have not done anything to improve the Galle harbour. The Koggala free trade zone which had room for a large number of factories has lost four factories. They have closed down after your government came into power.

What is the situation with regard to the proposed Matara-Colombo highway, you have built only a few yards. The contractors have now left the country. Why? Perhaps you did not pay them.

You have opened industrial estates without industries. The foundation stones that you have been laying have become tomb stones; an eternal monument to inaction and incapacity.

The UNP was an efficient government. We had charted all the targets that we have set for the first four years of our rule. You must also be able to have charts like ours.

According to the World Bank much of the employment was due to increased emigration, military service and recruitments as teachers. There was no other employment.

Only 70,000 jobs have been created within the country. The rest went abroad and others found employment in security services. They are cannon fodder.

Also according to World Bank the country's savings too has decreased. During President Wijetunga's period savings reached about 23 percent of the GDP. During your four years savings have increased only by about one percent.

Your government has reduced the allocation for the industrial development Ministry by 51 percent.

What has happened to your so-called thrust industries. The Blue Diamond International Company faced with financial crisis has suspended the sale of stock market shares.

The hoteliers have demanded a moratorium on the building of further hotel building. You have been giving incentives to build hotels but the hoteliers have refused it and wants a moratorium.

You need at least 550,000 tourists for the existing hotels to operate just to recover their expenses. The tourist arrivals projected for the year is between 360,000 to 370,000, a number quite insufficient to maintain the present hotels.

Only one company has registered in the Stock Exchange during the whole of this year. The other registered were plantation companies which were already existing.

You had a Budgetary proposal to allow what is called two tier hospital where one section was to be treated free of charge and the other a fee levying one. But none has made use of this opportunity.

There had been overshipment of some textiles which may lead to be embargoed further exports.

Export growth in this country has dropped by 13 percent. We are the worst affected in whole of South Asia on this count.

Our textile industry is in a very vulnerable situation. Eighty percent of exports are to major 10 companies. If any of them decides to shift to any other exporting country, we will be in deep trouble.

Burdens on the people have increased. The economic fundamentals have been eroded. The large expenditure on the war has not brought in any results.

Foreign reserves have fallen. During UNP regime there was foreign reserve equivalent to seven and half months imports has now fallen to four and half months imports.

We had a correct balance in the defence expenditure, expenditure on social welfare and expenditure on capital expenditure.

In a country like Sri Lanka private sector cannot be the engine of growth. It should be the private sector combined with public sector that should be the engine of growth.

The government is suffering from a selling mania. You accused the UNP of selling the family silver. But you are selling now the family silver and the family itself. You will sell anything including the waters of the sea around the island and the air.

With regard to GST some fiddling and judging is going on in the Treasury. All your macro-economic target have gone hay wire since 1994.

Taken all in all the budget totally lacks credibility. It is for the first time in history the IMF resident representative in Colombo has said that the 1999 budget proposals are unrealistic.

Sri Lanka is plunging into both political chaos due to bad governance. This government reminds me of a man sleepwalking to ruin.

This is a care and maintain budget till Ranil Wickremasinghe comes to rescue the country in the year 2000. We have an able, punctual and practical leader. We have the plans, we have the men and we have the money to do our job.

Our second line of young MPs of our side have been trained to take over from you.

G. L. Peiris (Minister of Justice, Constitutional Affairs, Ethnic Affairs and National Integration and Deputy Minister of Finance) said the speech by Ronnie de Mel winding up the debate for the opposition were full of rhetorical exhortation. He made what he would like to have happened seem as to have already taken place.

We are in a situation of escalating defence expenditure. For 1999 we have made provisions for 47 billion rupees. The entire budget has been structured balancing welfare and development with military expenditure.

During the past four years we made substantial salary increases in the salaries of teachers, public officers and the armed forces.

Speakers from the Opposition spoke much of alleged failures to spend on health. If you study the figures, you will see that there has been an increase in the funds allocated. Next year 2.4 percent of GDP will be spent on health. The hard facts point out that the human resources and facilities including the number of hospitals increased considerably during the past 4 years.

The funds we have allocated for education is greater than the money spent by the previous government in its 17-year rule.

Essential expenditures were allowed to grow. Health, housing, community services were sectors that received increased allocations inspite of the need for higher stakes for military expenditure. Private sector participation in transport and communications increased.

We are not depending entirely on the private sector for economic growth. The state has undertaken obligations to develop the economy. We have brought in the private sector wherever possible with the intention of reducing public expenditure. The foreign buyers that have come in have a creditable reputation internationally. We have been able to control expenditure growth at 11 percent. There has been considerable expansions in power generation, telecommunications from 94 to 98.

Mr. Ronnie de Mel failed to give us credit for averting an economic crisis, while tumultuous developments were taking place in other countries.

We have focussed our attention to relocating industries in remote regions.

The Opposition that harped on the international drop in oil prices, failed to mention fluctuations of the exchange rates.

The budget can be boiled down to 5 principle themes. Employment generation has been given top priority with the strengthening of vocational training institutes. The development of the construction industry with greater budgetary allocations is of paramount importance. Rehousing in urban areas which will entail substantial benefits to urban dwellers. Agriculture development with emphasis on seed cultivation and cultivable lands. The improvement of pension schemes, and vehicle allowance would benefit the public servants of this country.

The NRFC accounts will not be touched contrary to what the Opposition claimed.

In presenting this budget we had no intention of deceiving the people by producing a superficially attractive budget.