Republicans on Thursday postponed a vote on a Democratic-sponsored war powers resolution to rein in President Donald Trump’s military campaign in what could be seen as a missed opportunity to pave the way for a negotiated settlement of the Iran conflict. They did so as it became clear that the GOP would not be able to muster a majority to defeat the resolution which, if passed, would have compelled Trump to stop the Iran war. Republicans hold slender majorities in both chambers of Congress. They are doing everything in their power to scuttle the war powers resolution. However, they cannot go on postponing the vote on it indefinitely.

Some of the US legislators who voted to scuttle a previous war powers resolution have changed their position and expressed willingness to put Trump in a straitjacket to save lives, funds and America’s international image. This is believed to be the main reason for Trump’s decision to postpone US withdrawal from the current ceasefire and resume strikes on Iran. Three Republicans voted for the previous war powers resolution which was almost passed.

Trump’s decision to postpone military operations has also been attributed to the depletion of a substantial portion of America’s advanced missile defence inventory during the conflict with Iran, according to a report published by The Washington Post. This revelation is reported to have caused serious concerns in Washington over its capacity to sustain military commitments vis-a-vis multiple theatres simultaneously, particularly in the Indo-Pacific, where allies such as Taiwan, Japan and South Korea remain heavily dependent on the American security umbrella. Military inventories take years to replenish. US arms sales to Taiwan have already been paused to ensure that the Pentagon has enough munitions for the Iran war, according to media reports. Ukraine is likely to face a similar fate.

Congress members are becoming increasingly disillusioned with Trump’s war, which has driven domestic fuel prices up. Even the patience of Republicans who wholeheartedly backed Trump’s military campaign have had a change of heart due to the prolongation of the war and the unexpected consequences of it, such as Iran using the Hormuz Strait as a strategic lever to shift the war to the economic front. Besides, Iran has demonstrated remarkable resilience and a mindset that it is unconcerned about the consequences of its counterattacks. It has warned Washington that the Gulf of Oman could become a ‘graveyard’ for US Navy ships deployed in the region if it continues its military aggression. Tehran has so far sprung several surprises for the US and Israel, and its aforesaid warning cannot be dismissed as mere rhetoric.

It will be in the interest of global peace for Congress itself to step in to curb Trump’s war powers and de-escalate the West Asia conflict, without letting it spiral out of control.

An early end to the Iran conflict will benefit the entire world tremendously. Besides the colossal loss of lives and the destruction of assets, including oil infrastructure, the war has taken a heavy toll on almost all countries, and the developing nations are the worst hit. Economies around the world are reeling from massive oil price increases.

The war powers resolution is based on a law passed during the Vietnam war to enable Congress to regain power over external conflicts, but Trump has publicly called it unconstitutional. He has undermined vital US systems and institutions. When he failed to secure a consecutive second term, he claimed the election had been stolen by his political opponents and allegedly provoked the Capitol attacks in 2021. Now, he is trying to arrogate to himself some congressional powers related to war.

If the GOP continues to support Trump’s military campaigns, it will do so at the risk of losing its hold on Congress, for Trump’s popularity ratings are trending downward, with midterm elections drawing near. Even when the President is popular, his party tends to lose seats in midterm elections. Trump’s approval rating has plummeted to 35%, according to Forbes. Several polls have also found that 64% of US voters think it was wrong for Trump to go to war with Iran. Both the US and the rest of the world will gain if the war powers resolution is passed and Trump made to act with restraint.

Saturday 23rd May, 2026

SJB MP Mujibur Rahman has alleged in Parliament that on the eve of the announcement of a 50% customs duty surcharge on vehicle imports, Letters of Credit (LCs) for 1,782 vehicles had been opened by three close associates of President Anura Kumara Dissanayake. Previously, the Opposition claimed that the number of LCs opened on that day exceeded 4,000.

Rahman said the number of LCs opened during the week prior to the announcement of the surcharge mounted to 4,000. The government and the Opposition have locked horns over the issue. It has also been claimed in some quarters that some other vehicle importers also benefited from inside information.

It may not be fair to level sweeping allegations against all vehicle importers. They watch foreign exchange rates, particularly the depreciation of the rupee, global issues and trends, and respond accordingly without the benefit of inside information. When the rupee began to tumble, some vehicle importers may have expected the government to resort to drastic measures, such as import restrictions, to manage the situation. It is natural that traders place bigger orders when the rupee shows signs of continuous weakening. Vehicle importers are no exception.

When it became clear that the rupee free fall would last for a while, vehicle importers may have opened more LCs. That is the name of the game in the business world. It is a gamble, though. If the West Asia conflict goes away by any chance, with the global oil markets stabilising and prices returning close to the pre-war levels, the rupee will rally and the vehicles, imported during the rupee depreciation, may not fetch the desired prices and the importers may not get the expected returns on their investment in such an eventuality. Even ordinary consumers react in a similar manner and stock up on goods that are expected to be in short supply. Most filling stations hide their stocks on the eve of monthly fuel price revisions, for the trend is for the fuel prices to increase in this country. They have no need for inside information to do so. They go by market trends and act with impunity to profiteer. Some of them also place bigger fuel orders towards the end of every month, expecting price increases.

However, the possibility of some vehicle importers having benefited from their political connections and received inside information about the customs duty surcharge in advance cannot be ruled out. Even Budget secrets are leaked to some businesses in this country. Financiers of successive governments have earned billions of rupees in profit by hoarding cigarettes in the run-up to Budgets that increased tobacco prices. Political leaders are known to work hand in glove with business leaders.

As for the allegation that the incumbent government leaked information about the duty surcharge to its cronies, what needs to be examined is whether there were unusually large vehicle orders placed in the run-up to the announcement of the surcharge, and whether the importers concerned are known to have links to the ruling coalition. If only a few vehicle importers who backed the JVP-NPP election campaigns placed huge vehicle orders just days before the surcharge was imposed, it could raise questions of favouritism. A graph showing the number of vehicles imported by leading traders, especially the ones with political links, during the past month may reveal unusual patterns, if any.

Now that the Opposition has levelled a very serious allegation against the government and some companies, the burden is on it to support its claim with facts and figures. The government ought to make all necessary information available if it has nothing to hide.

Friday 22nd May, 2026

The depreciation of the rupee continues, and the government is accused of making only half-hearted attempts to arrest it. The UNP has said the country is facing a very serious issue due to the uncontrolled tumble of the rupee, and during the 20 months since the current administration assumed office, the exchange rate has moved from around Rs. 292 at the time former President Ranil Wickremesinghe handed over office to around Rs. 354 against the US dollar. It has attributed the current situation to the JVP-NPP government’s failure to continue economic policies introduced by the previous administration and pointed to what it describes as a lack of a clear economic plan and failure to strengthen foreign reserves. According to the UNP, these factors have contributed to the rising value of the US dollar. The SLPP-UNP government was lucky that it did not face a global oil price hike and increasing shipping costs.

However, the Joint Apparel Association Forum (JAAF) has argued that the depreciation of the Sri Lankan rupee should be examined in the context of global pressures, such as increasing world oil prices and shipping costs. The rupee depreciation should not be interpreted as a sign that Sri Lanka’s economy is underperforming, JAAF has said. It has been pointed out that the Sri Lankan rupee has depreciated by 4.8% against the US dollar, the Indian rupee by 6.4%, the Nepalese rupee by 6.2% and the Indonesian rupiah by 5.2%.

The JAAF statement reflects the global economic reality, but Sri Lanka’s situation is more serious than that in many other countries. Sri Lanka is still recovering from an economic crisis. The government will have to go beyond imposing a 50% customs duty surcharge on vehicle imports to curtail the forex outflow, strengthen the rupee and shore up foreign currency reserves.

President Anura Kumara Dissanayake has urged the public to cut down on fuel consumption and help boost the country’s foreign currency reserves and arrest the rapid depreciation of the rupee. But they have already cut down on fuel consumption due to soaring oil prices.

President Dissanayake has claimed that a litre of diesel costs as much a Rs. 720, and a government subsidy on diesel amounts to Rs. 100 a litre. If a litre of diesel costs Rs. 720, as the President claims, are the private fuel retailers incurring huge losses by selling diesel at the current price (Rs. 392 a litre)? Is the Ceylon Petroleum Corporation overpaying for fuel? The increasing national fuel bill and the country’s forex woes cannot be blamed on the fallout from the West Asia crisis alone. True, the Iran conflict and the closure of the Hormuz chokepoint have driven the world oil prices up. However, the huge rise in Sri Lanka’s fuel bill from USD 98 million in February to a projected USD 522 million in May, as the President says, is also due to a massive increase in the use of diesel, etc., to operate the oil-fired power plants to compensate for the generation loss caused by substandard coal at the Norochcholai power complex.

With the government struggling to maintain an uninterrupted power supply by burning costly diesel, scheduled power cuts may not be far away. The Opposition has told Parliament that unofficial power cuts are already underway.

The national fuel bill no doubt must be curtailed, but there are other avenues that the government should explore to arrest the rupee’s tumble. Exporters have gained from the depreciation of the rupee, which they themselves have to take responsibility for to some extent. It has been alleged that Sri Lanka is deprived of most export proceeds due to various rackets. Exporters unlawfully park foreign exchange abroad. This practice is linked to exchange control violations, tax evasion, capital flight and, in some cases, even trade-based money laundering. Common methods used by unscrupulous exporters to avoid the repatriation of most export proceeds include the following as we have reported over the years, quoting experts: under-invoicing exports, over-invoicing imports, keeping proceeds abroad through offshore entities, use of “open account” arrangements, multiple invoicing and phantom shipments. Some fraudsters use hawala or informal settlement systems. The media has exposed these malpractices over the years, but in vain.

These export-related rackets have prompted many countries to require exporters to repatriate export proceeds within a relatively short period, submit shipping and banking documentation, and convert part or all export earnings into local currency. Sri Lanka has adopted some of these methods but no government has had the courage to go the whole hog to ensure compliance, for exporters have huge slush funds to bankroll election campaigns. The JVP-NPP government must get tough with the errant exporters who resort to malpractices and deprive the country of much-needed forex. Ensuring the repatriation of export proceeds in a proper manner is half the battle in breaking the back of the forex problem.

The need for a holistic approach to rupee depreciation cannot be overstated, but stringent measures are necessary to curb the outflow of foreign currency.