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Ravi demands full disclosure on Lanka’s usable reserves, flags forex leakages

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Ravi

Opposition MP Ravi Karunanayake on Wednesday called for an urgent government statement to Parliament on the integrity and usability of Sri Lanka’s Gross Official Reserves (GOR), raising concerns over foreign exchange leakages and regulatory consistency under the Foreign Exchange Act No. 12 of 2017.

Raising the issue under Standing Order 27 (i), Karunanayake urged the Government to provide a comprehensive disclosure on the composition, encumbrances and deployability of the country’s reserves, as well as on the Central Bank’s oversight of foreign currency transactions.

“Reserve credibility depends not merely on headline numbers, but on transparency, enforceability and consistency in regulation,” the MP told the House.

He sought clarification on the latest reported GOR figure and the net usable reserves after excluding encumbered assets, swaps and pledged balances. He also requested details of annual revenue earned on reserves from 2023 to 2025.

Following are the questions raised by MP Karunanayake:

1. What is the latest reported GOR figure, and what is the net usable reserve after excluding encumbered assets, swaps, and pledged balances? What is the revenue earned on are GOR 23-25 per year?

2. Provide a separate and detailed breakdown of GOR, including: (a) Monetary gold (quantity and valuation basis) is it real gold or gold paper? (b) Foreign currency assets by major currency and instrument; (c) SDR holdings; (d) IMF reserve position; (e) Foreign currency swaps, specifying counterparty type, principal amount, tenure, maturity profile, and all-in cost; (f) Domestic swaps, specifying amount, tenure, rollover terms, collateralisation, and effective cost.

3. Of the total reserves reported, how much is encumbered, swap-backed, or otherwise not immediately deployable for debt servicing or currency stabilisation?

4. What SLR spread, fee, or margin does the Central bank apply when buying or selling USD to the Government for reserve accumulation and external debt servicing and what total profit or gain has the C.bank realised from such transactions during the past three financial years? Advice per year.

5. Is the Central Bank subject to continuous and statutory audit by the Auditor General? If so, will the Government table the most recent audit report, specifying audit scope, sample size, reserve confirmations, swap verification and gold custody validation?

6. What triggered the recent circular warning domestic institutions on foreign currency transactions?

7. Has the C.bank quantified foreign exchange and tax revenue losses resulting from Sri Lanka-based businesses routing credit card and commercial payments through overseas payment gateways?

8. If domestic entities are regulated strictly, why has a binding circular not been issued against noncompliant business entities using foreign payment gateway arrangements that divert foreign exchange outside Sri Lanka’s regulated banking system?

The government asked for two weeks’ time to respond to the queries.

by Saman Indrajith



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Sri Lanka cricket finances ‘greater than feared’: interim chief

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Eran Wickramaratne gestures during a press conference at the Sri Lanka Cricket Board office in Colombo on May 21 (Ishara S. KODIKARA/AFP)

(AFP)Financial irregularities surrounding Sri Lankan cricket were far worse than feared, government-appointed administrators said Thursday, promising a full accounting and sweeping reforms.

“We have already ordered a forensic audit of the accounts,” Eran Wickramaratne, interim president of Sri Lanka Cricket (SLC), told his first news conference since taking office last month.

He said financial irregularities were “far greater than initially feared”.

He said the new SLC leadership — handpicked by the government of President Anura Kumara Dissanayake — would bring in sweeping reforms as concerns linger over international sanctions.

The current administration was appointed following the mass resignation of SLC’s elected officials last month — a move that raised fears of possible suspension by the International Cricket Council (ICC) over political interference.

The SLC, the country’s richest sports body, was suspended for two months in 2023 on similar grounds.

Wickramaratne, however, said discussions with the ICC were underway on reforming the SLC.

“Our talks with the ICC have been extremely cordial and constructive,” he said.

“We have been very open and transparent in what we are doing, and they want us to pursue open and transparent methods in doing this.”

Reforms include drafting a new constitution aimed at curbing abuses that allowed groups to retain power for a prolonged period, he added.

Four-time SLC president Shammi Silva and his entire committee stepped down in April after the government intervention, clearing the way for the current overhaul.The previous administration had also faced criticism over the national team’s performances, including an early exit from the T20 World Cup, which Sri Lanka co-hosted with India earlier this year.

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Police roll out countrywide security plan for Vesak Week

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The Police have announced a special islandwide security programme for Vesak Week to ensure the public can observe religious activities in a peaceful and secure environment, free from fear or inconvenience.

The Police Department said the measures have been introduced in view of heightened religious observances across the country during the Vesak season, with Buddhists worldwide preparing to mark Vesak Full Moon Poya Day on 30 May 2026.

Authorities said large crowds are expected at major Buddhist sites, including ancient places of worship, while Vesak lantern displays, pandals and Bhakthi Gee programmes will be held across the island.

Under the special security plan, the Inspector General of Police has directed all police stations to take steps to minimise traffic congestion and ensure public convenience in areas with high footfall.

The Police Department said enhanced day and night mobile patrols will be deployed across all divisions, alongside special security operations aimed at safeguarding public safety and protecting property during the festive period.

Authorities also warned that strict legal action will be taken against individuals or groups whose behaviour is deemed to undermine the dignity and sanctity of Vesak or cause inconvenience to devotees.

In a set of public guidelines issued for the season, the Police Department urged organisers of Dansal programmes to comply with health and safety standards and implement proper crowd management measures to prevent congestion.

The public has also been advised to refrain from behaviour deemed inappropriate for the religious season, avoid excessive noise, and ensure responsible use of loudspeakers with prior approval.

Devotees have been requested to abstain from alcohol and narcotic substances during Vesak activities, while being urged to remain vigilant against theft in crowded areas and ensure the safety of children and elderly persons.

The Police Department further encouraged the public to report emergencies via hotlines 118 and 119, and to submit relevant video footage of traffic violations or environmental offences through designated WhatsApp channels for legal action.

Authorities said the measures are aimed at ensuring that Vesak is observed in a spirit of peace, devotion and public harmony across the country.

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India, Lanka boost air power ties as IAF Chief visits Colombo

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(ANI) May 22:Marking a critical milestone in regional security cooperation, India’s Chief of the Air Staff, Air Chief Marshal AP Singh, addressed the National Defence College (NDC) in Sri Lanka during his three-day visit to the island nation.

Speaking on the strategic imperative of “Air Power in the 21st Century,” the Air Chief Marshal highlighted the evolving dynamics of modern warfare and the growing necessity of robust bilateral military partnerships in the Indian Ocean Region.

The high-level interaction served as a central fixture of his three-day official visit to the island nation, aimed at anchoring the defence ties between the two neighbours.

Sharing the details in a post on X, the Indian High Commission in Sri Lanka said that the Air Chief also interacted with the Commandant and the National Defence College course participants.

The Chief of the Air Staff Air Chief Marshal A P Singh visited the National Defence College, Sri Lanka on 20 May 26. He spoke on the topic ‘Air power in the 21st century’ and interacted with the Commandant and NDC course participants

Earlier on Wednesday, the High Commission shared that the Air Chief was received with a Guard of Honour at SLAF headquarters prior to formal meetings on Tuesday, prior to his call on with the Commander of SLAF.

“He also called on the Deputy Minister of Defence Maj Gen Aruna Jayasekara (Retd), and the Secretary Defence, AVM Sampath Thuyacontha (Retd). ACM A P Singh paid his respects to the IPKF martyrs by laying a wreath at the monument in Bataramulla”, the post added.

Air Chief AP Singh had arrived in Sri Lanka on an official visit from 19-21 May 26.

India and Sri Lanka have a longstanding defence partnership.

Earlier in April, the two countries reaffirmed their growing maritime partnership through the fourth edition of the bilateral diving exercise, IN-SLN DIVEX 2026, conducted at Colombo from April 21-28.

The exercise witnessed participation of the Indian Navy’s Diving Support and Submarine Rescue Vessel, INS Nireekshak, alongside diving teams from both navies- underscoring enhanced operational coordination and professional synergy, the Indian Navy said in a statement.

As India continues to deepen its military engagements with friendly nations, the multilateral military Exercise PRAGATI 2026 commenced on Wednesday at Umroi Military Station, Meghalaya, with the participation of 12 friendly nations, namely Bhutan, Cambodia, Indonesia, Laos, Malaysia, Maldives, Myanmar, Nepal, Philippines, Seychelles, Sri Lanka and Vietnam.

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