Business

CB Governor sets the record straight on speculative theories of US dollar shortage

Published

5 years ago

2021/06/29

Central Bank Governor Prof. W.D Lakshman

Addressing speculations and concerns in various quarters including by the media about Sri Lanka’s international reserves, foreign currency liquidity in the domestic market and drains on such resources, Central Bank Governor Prof. W.D Lakshman yesterday provided a comprehensive account of the true situation and explained the measures taken by the authorities to ensure judicious management of foreign reserves, inflows, debt repayment, imports and the overall stability in the foreign exchange market.

Reproduced below is the full text
of the press statement issued
by the Governor.

Over the past few days, concerns have been raised by various individuals and media about an assumed shortage of foreign currency liquidity in the domestic market, preventing banks from facilitating imports. Reports published or circulated by some media channels indicate seriously negative viewpoints which can be very harmful to the country. I wish to make the following statement to explain the true position about this subject.

Due to heavy foreign currency borrowings in the past several years, there was adverse speculation, even by the time of the formation of the present Government in 2019/2020, about Sri Lanka’s ability to service its debt service obligations falling due in the near term. In spite of such speculation, and amidst added pressures owing to the COVID-19 pandemic on particularly our tourism cash flows, the Government of Sri Lanka reiterated its stance of ensuring that all its external debt service obligations would be met on time, thus maintaining Sri Lanka’s unblemished record of servicing all its maturing obligations.

To enable the country to perform this formidable task amidst reduced foreign currency inflows, Sri Lanka introduced measures to rationalise selected non-essential imports. Some of these restrictions have been gradually removed, although the Central Bank is of the view that there is further space to curtail non-essential and non-urgent imports, given the continued challenges emanating from multiple waves of COVID-19.

As a result of the measures taken by the Government and the Central Bank in the past 1 ½ years, the Government has been able to substantially reduce its foreign debt to GDP ratio to about 40 per cent and the face value of foreign debt from USD 34.1 billion at end 2019 to USD 32.2 billion by end March 2021, while successfully meeting its maturing debt service obligations. I believe that it is in Sri Lanka’s best interest to address the longstanding merchandise trade gap of USD 10 billion as it places Sri Lanka in a vulnerable position, through careful policy action. While doing this, we would continue to meet our debt service obligations and avoid further damage to the country’s reputation and to investor confidence on the Sri Lankan economy and the financial system.

We have also observed that some segments of the Sri Lankan community motivated by political reasons have continued to fuel adverse speculation about the future path of the exchange rate and the ability of the Government to service its obligations. Such self-serving speculations are unwarranted and are harmful to the general public as well as to the business community themselves. These speculative comments have naturally created some unnecessary short-term imbalance in the foreign exchange market between inflows and outflows. However, it must be noted that the Government and the Central Bank has ensured that trade is not unduly disrupted, and intermediate and capital goods imports are given priority in the process of imports. Total import values have remained considerably high at a monthly average of USD 1.7 billion during March, April and May 2021. High import values in these months show that importers, particularly of essential goods, have not been overly inconvenienced as the published media reports claim.

What the Central Bank is doing now with the participation of all commercial banks, is judicious management of imports and foreign reserves. As cash flows are poised to improve in the next few months, the Central Bank will be evaluating the national balance sheet and external macroeconomic conditions in deciding the future policy response.

As an interim solution in managing the mismatch in cash flows, the Central Bank has been working closely with the banking sector to ensure that stability in the foreign exchange market is maintained. Regular meetings with key officials of the banking community are held by the Central Bank, and the banking community has mutually agreed to manage their outflows within inflows, while giving priority to essential and urgent imports, and discouraging orders of speculative nature. It is such prudent action by banks that is being blown out of proportion by parties with vested interests.

Actions taken by the banking community have been supported by the Central Bank of Sri Lanka through measures taken in relation to mandatory conversions of export proceeds and regulatory measures to dampen speculative activity. The Central Bank has enabled commercial banks and corporates to borrow foreign funds so that the banking system could remain non-reliant on the Official Reserves to finance imports, thus supporting the national effort to continue the process of debt servicing without disturbance.

At present, our focus is managing Sri Lanka’s debt service obligations. In this regard our Gross Official Reserves remain at USD 4 billion, without considering the standby SWAP agreement of approximately USD 1.5 billion with the People’s Bank of China. While there may be short term fluctuations in this level of foreign reserves in the period ahead due to debt servicing of the Government, adequate financing strategies have been lined up to maintain reserves at sufficient levels, through inflows to the country. These include non-debt inflows expected within a short period of time to the Government particularly through its new investment arm, and other inflows to the Government from multilateral and bilateral sources. Inflows expected to the Central Bank include the SWAP facility of USD 250 million from the Bangladesh Bank expected in July 2021, the SAARCFinance SWAP facility from the Reserve Bank of India of USD 400 million expected in August 2021, and the special SWAP facility of USD 1,000 million being negotiated with the Indian counterpart. These are in addition to the receipt of around US dollars 800 million under the IMF SDR allocation expected in August 2021, and the Central Bank purchases of export proceeds and worker remittances from the market, which would help the Central Bank to build Official Reserves through non-debt inflows of around USD 700 million annually in the period ahead. Measures are also being put in place to entice the resident holders of maturing Sri Lanka International Sovereign Bonds (ISB) to repatriate maturity proceeds. It may be noted that 30 per cent of upcoming ISB maturities are held by residents. Moreover, the banking sector and the corporate sector have also seen increased amounts of financial flows at concessionary rates to support real sector activity. Private sector entities are expected to raise funds from overseas counterparts making use of the recent easing of related foreign exchange regulations. Some of these inflows in the period ahead are expected to add to the Official Reserve as well. The recent enactment of the legislation on the Colombo Port City Commission will also enable increased non-debt foreign exchange inflows to the economy.

Overall, I wish to assure the media, the general public, the business community and the investor community that the conditions of foreign currency liquidity observed in the domestic market at present are temporary and are driven by excessive speculative activity. We request these operators in the market to remain calm and not fuel undue speculation, which is not in the national interest, as the careful management of the situation without undue disruption, will result in a beneficial outcome to the country as a whole.

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Business

Cricket to speak for every life that can be saved on Sunday July 19

Published

11 hours ago

2026/07/12

Thilina Walpola

Pink match Dambulla Sixers vs. Jaffna Kings

Dambulla Sixers Pink Match calls Sri Lanka to wear pink, fill the SSC, and take the TLC (Touch, Look, Check) message home

There are days when cricket is about the result. There are days when it is about pride, rivalry, form and the final over. And then there are rare days when cricket is asked to carry something far greater than the game itself. Sunday, July 19, will be one of those days.

At 3.00 p.m. at the SSC Grounds, the Dambulla Sixers will meet the Jaffna Kings in the Lanka Premier League. But before the first ball is bowled, the country will be invited to stand together for a message that can save lives. This is the LPL Pink Match 2026.

It is not simply a match played in pink. It is a national reminder that breast cancer awareness matters, early detection saves lives, and every family has a role to play. The call to the public is direct:

Buy a ticket. Come to SSC. Wear pink. Bring your family and friends. Share the flyer. Post it on your WhatsApp Status and social media. Wear the official Pink Fan T-shirt. Most importantly, take home the message of TLC — Touch, Look, Check.

A match with a message

The Dambulla Sixers will take the field in specially designed pink playing apparel and pink helmets. The stadium will carry breast cancer awareness messages, the TLC logo will be displayed on giant screens, and the live broadcast will carry the message to homes across Sri Lanka. The Jaffna Kings will also take part in the Pink Match ceremony, reminding the country that while there may be opposing sides in cricket, there are no opposing sides in the fight against cancer.

Children from Suwa Arana – A Place for Healing, together with children from SOS Children’s Villages Sri Lanka, will join both teams on the field during the official ceremony. Their presence will give the day its deepest meaning. It will remind spectators that illness does not stop with the patient. It enters homes, affects siblings, changes routines, tests parents, and demands courage from entire families.

Three words that matter

The message of the Pink Match is simple enough for every home to remember.

Touch. Look. Check.

Touch — become familiar with your breasts and notice any lump, thickening or unusual change.

Look — check for changes in shape, size, skin or nipple.

Check — seek medical advice without delay if something feels or looks unusual.

In Sri Lanka, breast cancer remains the most common cancer affecting women. According to the campaign material, approximately 15 women are diagnosed every day, while three women lose their lives to the disease. Yet the central message is one of hope: when detected early, breast cancer is highly treatable.

That is why this match matters. Not because a cricket match can replace medical care. It cannot. But a cricket match can start a conversation. It can remind a daughter to speak to her mother. It can encourage a husband to support his wife. It can make a workplace talk about women’s health. It can help remove fear and delay.

Sometimes, the first step towards saving a life is not taken in a hospital. It is taken in a home, when someone says, “Please check.”

More than a one-day gesture

What gives this initiative particular strength is that it is not a cause attached to cricket for a day. It is rooted in a deeper relationship. Before the Pink Match, the Dambulla Sixers team will visit Suwa Arana – A Place for Healing, where children receiving cancer treatment and their families are supported with accommodation, meals, care and dignity while they travel for treatment at Apeksha Hospital. The team visit will include time with children and families, a guided experience through Suwa Arana, and the official launch of the LPL Pink Match 2026 and the TLC National Breast Cancer Awareness Campaign.

This matters because compassion cannot be staged only under stadium lights.

It must begin in quieter places — in patient rooms, dining areas, kitchens, play spaces, healing gardens and waiting moments. By beginning at Suwa Arana and continuing at SSC, the Dambulla Sixers are connecting the human reality of cancer care with the national reach of cricket.

That is the bridge this campaign is trying to build.

Business

The Ceylon Chamber’s Commercial Document Registration Division expands export support

Published

1 day ago

2026/07/11

Thilina Walpola

The Commercial Documents Registration Division (CDRD) of The Ceylon Chamber of Commerce has expanded its export support services with the introduction of the Free Sale Letter for Pharmaceuticals, providing Sri Lankan pharmaceutical manufacturers and exporters with an additional document certification service to support their export processes and compliance requirements in international markets.

The new service expands CDRD’s portfolio of trade documentation solutions, which includes Certificates of Origin and the certification of key commercial documents required by overseas buyers, customs authorities, and regulatory bodies. These services assist exporters across sectors by helping ensure their documentation meets applicable requirements for international trade.

Established in 1925 as one of the authorised institutions to issue Certificates of Origin in Sri Lanka, CDRD has supported the country’s international trade for nearly a century. Today, the Division provides certification and verification services to exporters, manufacturers, freight forwarders, logistics providers, and other trade stakeholders, supporting businesses in meeting documentation requirements for global markets.

In addition to pharmaceutical certification, CDRD facilitates the certification of Commercial Invoices, Packing Lists, Price Lists, Health Certificates, Phytosanitary Certificates, Certificates of Analysis, Bills of Lading, Survey Reports, Beneficiary Certificates, and other export-related documents. The Division also issues Free Sale Letters and Surveyor Appointment Letters, while supporting exporters through the Ministry of Foreign Affairs’ Electronic Document Attestation System (e-DAS), enabling secure and efficient document authentication.

Through established processes, digital solutions, and its e-service platform, CDRD continues to enhance the efficiency and accessibility of trade documentation services. Available 24/7 and 365 days of the year, the platform enables exporters to submit and manage documentation requirements conveniently while ensuring that certified documents meet internationally accepted requirements. By providing reliable documentation support and adapting its services to changing trade needs, the Division assists Sri Lankan businesses in managing export requirements and accessing international markets.

For more information on obtaining commercial document registration services, contact Achala via achala@chamber.lk / 0115588886

Business

Siyapatha Finance unveils newest branch in Bandarawela

Published

1 day ago

2026/07/11

Thilina Walpola

Siyapatha Finance PLC recently expanded its island-wide footprint with the successful inauguration of its 64th branch in Bandarawela. Strategically located in scenic hill town in the Badulla District, the latest branch offers convenient and wider access to tailored, customer-centric financial solutions.

The branch was ceremoniously declared open by Siyapatha Finance PLC Chief Executive Officer (CEO) Mathisha Hewavitharana, joined by Chief Operating Officer (COO)Rajeev De Silva, Ms.D.M. Dewmi Tharindi, a student of Bandarawela Dharmapala Vidyalaya who won the Under-18 Girls’ 3,000m event at the Junior National Athletics Championship, the Senior Management and staff members as well as Traffic OIC Kandasami, Trade Association Secretary Sunanda Rathnayaka, representatives of the government and private banks and insurance companies and well-wishers.

Sharing his thoughts, Siyapatha Finance PLC CEO Mathisha Hewavitharana remarked: “We are deeply honoured to be of service to the people of Bandarawela. Opening this branch is a pivotal step in our 2026 expansion strategy and a reflection of our commitment to strengthen our presence in Sri Lanka. It is a region that showcases potential for greater economic development primarily through the country’s traditional agricultural practices. We look forward to reaching as many different communities as possible in the coming years.”

The Bandarawela branch offers a comprehensive product portfolio including leasing, fixed deposits, gold financing, business loans, personal loans, fast draft, and factoring to Smart Pay, the Company’s bill payment facility. With a thorough understanding about the current socio-economic dynamics of the region, the well-trained team at the newest branch is dedicated to providing flexible financial solutions to aspiring individuals as well as small and medium-scale enterprises (SMEs).