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

Opposition Leader Sajith Premadasa yesterday alleged in Parliament that eight recently imported coal shipments were substandard and called for an independent probe into the matter.Speaking in the House, Premadasa said Sri Lanka typically requires 36–38 coal shipments annually. While 11 Russian shipments received so far had raised no concerns, he claimed that 25 vessels ordered from South Africa under a new tender were facing quality issues.

He cited combustion reports from the Norochcholai Coal Power Plant showing that the eight shipments already received under the new tender failed to generate the expected 300 megawatts per unit. According to the MP, the outputs were: 285 MW, 290 MW, 260 MW, 295 MW, 285 MW, 270 MW, 275 MW, and 255 MW.

“These are scientific data generated automatically through boiler combustion reports that cannot be altered,” Premadasa said, asserting that the figures indicate the coal supplied was below required standards.

He warned that low-quality coal could increase fuel consumption, raise operational costs, and damage equipment. Any shortfall in power generation, he said, would necessitate additional coal imports or greater reliance on diesel power, ultimately driving up electricity tariffs for consumers.

“The loss will have to be borne by the electricity consumer,” Premadasa said, urging the government to clarify whether the shipments met required specifications.

He also criticized delays and changes in tender requirements, alleging that supplier eligibility criteria had been relaxed to allow non-standard providers.

by Saman Indrajith

The Colombo Magistrate’s Court yesterday granted bail to the Additional General Manager of the National Water Supply and Drainage Board (NWSDB), Darshana Medawatte, along with two other suspects remanded over corruption charges.

Colombo Chief Magistrate Asanga S. Bodaragama issued the order when the case was taken up yesterday (20), after Bribery Commission officials submitted a progress report on their investigation.

When asked if there were any objections to bail, the investigative officers confirmed they had none. The Magistrate subsequently released each suspect on two personal bails of Rs. 5 million each, while imposing an overseas travel ban. The plaint was recalled for further proceedings on 29 May.

The three suspects were earlier arrested and produced in court by the Bribery Commission on charges of conspiring to commit corruption by arranging the rental of a luxury SUV for the NWSDB Chairman, despite him already having two official vehicles, causing an alleged loss of Rs. 12,750,000 to the government.

by AJA Abeynayake