President asserts during Budget 2011 winding-up speech :

Lanka on verge of prosperous era

*Shed divisions for achieving prosperity

*Sinister attempt to revive terrorism

*No room to create divisions in Security Forces

*Defence expenditure, an investment for future

*Lawmakers should not work against country's interests

*Country poised for higher growth rate

*Priority to develop North and East

President Mahinda Rajapaksa, presenting the winding-up speech at the Budget 2011 debate in Parliament on Friday, urged all right-thinking and peace-loving Sri Lankans to rally round the Government to fulfil the aspirations of all citizens.

This was the first time ever that an Executive President made the winding-up speech at a Budget debate.

The President said:"We can protect the hard-won freedom only if people from all communities are dedicated to achieve development. This Budget is a pointer to where we are heading in the next 10 years. We hope to realise the aspirations of all, including the younger generation.

"The budget is aimed at developing the country. We are poised for faster growth. It would not be a difficult task for us to bring economic prosperity to the nation within the next three years.

Some MPs expressed their views that could be used to make the Government's budgetary proposals more meaningful.

We are humble enough to reconsider our policies in line with those constructive ideas. Yet, some oppose our proposals for the sake of opposing, due to their political differences with us. They want us to implement what they want. We will not approve anything that goes against the interests of the country.

We are committed to uphold national security. We were committed to defeat terrorism. The valiant Security Forces wiped out ruthless terrorism, starting from the Mavil Aru operations within a short span of time.

Some MPs criticised the defence vote. But 88 percent of the Rs. 209 billion allocated in the Budget would be disbursed to meet recurrent expenditures such as the payment of salaries of military personnel. Defence expenditure should be seen as an investment that guarantees national security.

Our land territory, maritime and air space have to be strategically defended for which we have to spend in future too. We also have to strengthen our peace-keeping missions abroad as well as developing the capabilities of our Security Forces to make them the most disciplined Forces in the world. By doing so, we would be giving priority to strengthen our investment environment. Even though we have ended the war, we still have to spend a lot of money on defence to maintain our Security Forces. The Opposition should not make false allegations against our valiant Security Forces.

Therefore, whatever others say, the Government will not hesitate to manage defence expenditure to suit the Nation's requirements. It should be understood as an investment against the resurgence to the most dreadful terrorism that arose in the country. However, we shall leave no room for terrorism to take root again. We should remember that neglecting national security led to a great tragedy in our country.

Conspiracies under way

We are concerned as there are reports that sinister moves are under way to create clashes among the Security Forces. We have received information that there are conspiracies to divide the Security Forces, create suspicion against each other. These conspirators should not be allowed to achieve their aim, which would lead the country towards conflict. I am closely observing the situation, and I request those elements not to sow discord among the rank and file of the Security Forces, which would be a treachery of the highest order.

The opinions of some who oppose this Budget and the terrorist conspiracy that supported the Oxford Union speech are closely inter-related. This has exposed a delicate attempt through the Budget debate to revive terrorism in the country. There are conspiracies hatched abroad against Sri Lanka.

I intended to explain a home-grown political solution in my address to the Oxford Union. We have paid attention to a political solution that empowers the economy and people at village level. The terrorists' strategy was to prevent us from informing our stand to the world. They wanted to distract the attention of the country which now enjoys peace to a different direction. They want to defame Sri Lanka in the eyes of the world.

Certain business leaders and NGOs that appeared for the LTTE are still engaged in terrorist financing in pursuit of their goal to create a Tamil Eelam. It is the responsibility of all MPs to uphold the Constitution according to the oath they had taken. It is a prime and national responsibility to desist from any act that defames the Motherland.

Certain speakers participating in the debate said that no money has been allocated for the development of the North. This is far from the truth. These persons are trying to whip up communal feelings. The Government has given priority to the development of the North and the East. Development is also a priority in our endeavour to find a political solution that would unite the Sinhala, Tamil and Muslim communities. Every Ministry has allocated funds for Northern development.

Foreign judicial organs

There is another attempt that is being carried out at present to degrade our judiciary and allow foreign judicial organs to interfere in the legal system of the country. This should not be allowed to happen. The Government considers it important to strengthen our judiciary and its independence.

The Government had planned to reduce its debt burden to 70 percent within the next three-year period. Local enterprises including Mihin Lanka are doing well. It has given a chance to ordinary Sri Lankans to travel abroad at affordable rates. Our economic policies are aimed at doubling the per capita GDP income to US$ 4,000 by the time we complete the second term.

We want to eliminate poverty.

The economy has registered an impressive growth of 7.8 percent during the first half of 2010. The GDP Growth this year is likely to be 7.5 percent to eight percent. All sectors of the economy performed strongly. There is renewed growth momentum after the end of the war against terrorism. The growth is broadbased .

Peace has to be strengthened to achieve economic prosperity. Peace is needed for development, which in turn needs investment. All these need national security, which we will never compromise. This is the time to shed all divisions and get together to develop the country."

The 2011 Budget was passed with a majority of 116 votes, the highest in recent political history. Only the UNP and the DNA MPs voted against the Budget whereas the TNA abstained from voting. There were 156 votes for it and 40 against.

The Budget 2011 was presented in Parliament by President Mahinda Rajapaksa on November 22, three days after his swearing-in for the second term.