News
CoPF gives nod for increased thresholds for local companies to invest overseas
The Committee on Public Finance recently took into consideration an Order inclusive of updated guidelines on outward investments, introducing increased thresholds for local companies to invest overseas and streamlining processes to facilitate cross-border expansion, the parliament stated in a press release issued yesterday (4).
The text of the press release: “The said Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 Published in the Gazette Extraordinary No. 2441/14 of 18.06.2025 was thus approved after due consideration.
These matters were discussed at the meeting of the Committee on Public Finance Chaired by Member of Parliament (Dr.) Harsha de Silva on 29.07.2025.
Under the new framework, the investment limit for listed companies has been raised from USD 500,000 to USD 750,000 and the limit for unlisted companies has been increased from USD 150,000 to USD 200,000. Companies seeking to invest beyond these limits can now borrow from foreign sources up to USD 2 million, with Central Bank oversight and any investment exceeding USD 2 million will require special approval.
All outward investments must be routed through a designated Outward Investment Account (OIA) in Sri Lanka before funds can be transferred abroad. The Central Bank of Sri Lanka has granted general permission to licensed banks to facilitate these transactions swiftly, ensuring companies can access opportunities without undue delays.
Officials who attended the meeting emphasized that these reforms aim to encourage Sri Lankan businesses, particularly in the technology and software sectors to pursue global expansion while maintaining oversight of capital flows. The changes come amid concerns that previous restrictions were prompting some firms to relocate overseas.
Speaking on the updated guidelines, Central Bank of Sri Lanka representatives assured that short-term supplier credit (DA terms) remains classified as a current account transaction, with no additional restrictions.
The Committee also took into consideration the Regulation made under Section 35 of the Public Debt Management Act, No. 33 of 2024 published in the Gazette Extraordinary No. 2443/14 of 30.06.2025. Approval for the Regulation was granted following a discussion at length.
The Committee reviewed cross-border letter of credit (LC) and de-registration requirements pertaining to the importation of vehicles. Moreover, the Committee also inquired on the suggested improvements to the Gambling Regulatory Authority Bill and e-commerce platform taxation and related matters.
Reviewing the Regulation under Section 35 of the Public Debt Management Act, No. 33 of 2024, State-Owned Enterprises (SOEs) will no longer have unrestricted access to international borrowing under the new frame work. They must now undergo stress tests using an IMF-introduced tool to qualify for sovereign guarantees from the Treasury. This mechanism determines risk premiums in addition to lender interest rates, making borrowing more expensive while promoting fiscal discipline among SOEs.
Officials further noted that, based on the Public Debt Management Act, Sri Lanka currently operates under a 7.5% of GDP borrowing ceiling, with approximately 5% of GDP already utilized. This leaves only 2.5% borrowing capacity for future growth and development financing.
The Committee also received an update on the cross-border letter of credit (LC) requirements for vehicle imports. Treasury officials informed the Committee that the Cabinet of Ministers has decided to re-export all vehicles imported under cross-border LCs, though this decision is currently under legal challenge, preventing further discussion.
They also discussed proposed improvements to the Gambling Regulatory Authority Bill, with the Committee advocating for the inclusion of the National Lotteries Board and Development Lotteries Board within the regulatory framework, emphasising that lotteries constitute gambling and should not be excluded.
The officials present also stated that concerns pertaining to e-commerce platform taxation has been resolved. They stated that operations are now flowing smoothly following earlier delays caused by the switch back to HS code-based taxation.
The meeting was attended by Deputy Minister Chathuranga Abeysinghe, Members of Parliament Ravi Karunanayake, Rauff Hakeem, and (Dr.) Kaushalya Ariyarathne.”
News
Govt. assures UN of readiness to introduce ‘vetting process’ for troops on overseas missions
Defence Secretary (retd.) Air Marshal Sampath Thuyakontha has discussed with UN officials in New York the deployment of Sri Lankan troops in Haiti, under a new UN authorised force, tasked with tackling heavily armed gangs operating in the violence ravaged country.
The UN is in the process of building up a force comprising approximately 5,500 officers and men for deployment in Haiti.
The Sri Lankan delegation included Sri Lanka’s Permanent Representative to the UN, former Chief Justice Jayantha Jayasuriya. The UN has tagged the deployment Gang Suppression Force (GSF).
According to the Defence Ministry, Sri Lanka negotiated a Memorandum of Understanding (MoU) regarding the GSF. Although Sri Lanka has contributed to UN-led missions, the proposed deployment differed due to the nature of the operation, sources told The Island.
The delegation has assured that all personnel, assigned for UN missions, including the proposed GSF deployment in Haiti, would be subjected to a comprehensive screening process, in line with UN standards. War-winning Sri Lanka has declared, in New York, that the country was in the process of developing, what the Defence Ministry here called, National Human Rights Vetting Mechanism in consultation with the UN Resident Coordinator in Colombo.
The US has backed the deployment of Sri Lankan troops under UN command. Various interested parties, over the years, protested against the deployment of Sri Lankan troops on the basis of unsubstantiated war crimes allegations.
Thuyakontha has assured that troops would maintain highest standards of discipline during overseas missions. Sri Lanka brought the war here to a successful conclusion in May 2009 against predictions of contrary outcome by so-called experts.
The US and Panama proposed the GSF to replace a Kenya-led multinational force undermined by a lack of funding. Its strength hovered around 1,000, rather than the desired 2,500. The U.N. Security Council authorised the 5,500 strong force on September 30, 2025, with the new power to arrest gang members.
By Shamindra Ferdinando
News
Lawyers cannot be denied right to represent a suspect – Udaya
Sallay’s case:
Attorney-at-law Udaya Gammanpila yesterday (27) said a lawyer could not be deprived of his or her right to represent a client.
The former Minister and leader of Pivuthuru Hela Urumaya (PHU) Gammanpila said so addressing the media at the party headoffice at Pita Kotte. Gammanpila was responding to recent media reports that he had been prohibited from representing retired State Intelligence Service (SIS) Chief Maj. Gen. Suresh Sallay. Therefore, there was absolutely no basis for claims that he had been barred from meeting the retired officer, now named the third suspect in the Easter Sunday case, the ex-parliamentarian said.
Gammanpila emphasised that in terms of the Constitution a suspect’s right to be represented by a lawyer was recognised as a fundamental right. The Criminal procedure Code, too, guaranteed the suspect’s right to consult a lawyer, the ex-lawmaker said, pointing out that the Judicial Organisation Act underscored the same.
Declaring that the retired officer’s wife had named him as Sallay’s lawyer in a letter addressed to Director, CID, Gammanpila said that the courts, police and the Attorney General’s Department couldn’t under any circumstances interfere with his right to represent Sallay.
The CID arrested Sallay on 25 February and detained him under Prevention of Terrorism Act (PTA) for a period of 90 days. Sallay has filed a writ petition before the Court of Appeal through his lawyers, challenging his arrest and detention by the CID under the PTA.
Former Minister Gammanpila said that even if a Magistrate had the power to prohibit a lawyer from representing a particular suspect, such a course of action couldn’t be resorted to without giving the lawyer concern an opportunity to explain his/her actions.
Declaring that in case of misconduct on the part of a lawyer only the Supreme Court could take disciplinary action, the PHU leader said, adding that he sought a certified copy of the proceedings of the day when a section of the media reported the Magistrate’s declaration of the purported ban. Gammapila said that he was really keen to know what happened during the proceedings on that day.
Sallay served as Director, Directorate of Military Intelligence (DMI) from 2012 to 2016 and received the appointment as head of SIS following the 2019 presidential election. Sallay held that appointment till early October, 2024.
Gammanpila said that he couldn’t be barred for speaking to the media after meeting Sallay, currently held under PTA, or for authoring a book on the 2019 Easter Sunday carnage. According to Gammanpila as long as the suspect had no objections to his lawyer sharing some information with the media it shouldn’t be an issue for Additional Solicitor General Dileepa Peiris.
By Shamindra Ferdinando
News
Police seek Interpol help to probe monks nabbed with narcotics at BIA
Police investigating the thwarted a bid made by 22 Buddhist monks to smuggle in narcotics, with a street value of Rs 660 mn via BIA, from Thailand, over the weekend, believe the monks who organised the clandestine operation had sent groups of monks to Thailand before.
Sources said that they had brought in narcotics on earlier occasions.
Police have seized the mobile phones used by the suspects and sought INTERPOL assistance.
Earlier, the Negombo Magistrate’s Court remanded those 22 monks, arrested in connection with the largest drug bust in the airport’s history.
The monks were produced before the Negombo Magistrate’s Court and ordered to be held in custody until 02 May, as investigations continue into the alleged smuggling operation and any wider networks involved.
However, other sources said that more than 110 kilogrammes of suspected Kush and Hashish, with an estimated street value exceeding Rs 1.1 billion, had been found, concealed in false-bottoms of their suitcases. The bags reportedly packed with school supplies and sweets are said to have contained over five kilogrammes of narcotics per individual.
The arrests followed a raid by the Police Narcotics Bureau on Saturday night. Investigators have also recovered mobile phone evidence indicating that the group had travelled to Bangkok on 22 April using airline tickets allegedly given by a sponsor. Authorities allege that the suspects were photographed in civilian clothing, while overseas, engaging in activities deemed suspicious.
Police say this marks the first reported instance of a large-scale narcotics operation via the airport involving Buddhist monks. The suspects are young monks from different parts of the country.
By Norman Palihawadana
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