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Colombo Port City awaiting banking regulations

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By NETHMI RAJAWASAM

Colombo Port City, which will soon be renamed as the International Financial and Technological City, is awaiting Central Bank clearance for its banking regulations, Saliya Wickramasuriya, a member of its regulatory commission said.

The Colombo Port City is a multi-currency special economic zone (dollarized) that will be free of exchange controls. Some of the laws in the country, like the Urban Development Authority Law, the Municipal Ordinance do not apply to the zone.

In several other listed laws, including the foreign exchange act, and tax laws, the economic commission can recommend exemptions which have to be approved.

The Port City Commission has to work with the relevant agency in charge of the law, like the Central bank in relation to banking, the Department of Immigration for visas or Customs in preparing special regulations to apply within its jurisdiction.

Banks operating within the special economic zone will be licensed by either the central bank or the country it is incorporated in.

“There was a meeting yesterday between some of our members and the Central Bank,” Wickramasuriya told a public forum at the central bank.

“I understand that those regulations have now been discussed and pretty much finalised.”

Authorised Persons – or businesses approved to operate in the area – have to bring capital from abroad.

Foreign exchange controls will not apply to the area. But no rupees are supposed to be used there, except in some retail shops.

“There were some concerns that the central bank had around preventing a leakage of money that is, here,” he explained.

Initially a separate financial regulatory authority was proposed which would come under the central bank’s monetary board, operating under a different set of regulations.

“Why? The objective of one is, simply put, to attract money that is not here into Sri Lanka for the purpose of development and investment,” he said

“One of the objectives of the Central Bank, apart from its other policy responsibilities, is to prevent leakage of money that is here, outside.”

“It’s highly possible, in my humble opinion, that these two cannot be done by the same regulation.

“Because one is designed to prevent and the other one is designed to attract. And right now, we are still, I believe, in the process of unravelling this, this confusion about what is more important.

“Is it more important to prevent money from here, going somewhere else? Or is it more important to bring money that is not here, from somewhere else, here?”

Sri Lanka’s monetary instability started with the setting up of the central bank in 1950 and worsened from 1978 after International Monetary Funds’s Second Amendment left it without a credible anchor, analysts have pointed out.

Foreign exchange controls exist in the rest of the country since the central bank prints money to narrowly target a policy rate through inflationary open market operations and easy standing facilities while operating a de facto pegged exchange rate (trying to collect foreign reserves).

There have been calls to bring legal restraints against the central bank’s ability to mis-target rates (independent monetary policy), trigger forex shortages, currency depreciation, capital flight, high inflation, social unrest and impoverishment through debasement.

(Economynext)



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Showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.

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WEATHER FORECAST FOR 11 MAY 2026
Issued at 05.30 a.m. on 11 May 2026 by the Department of Meteorology

 

The low-level atmospheric disturbance in the vicinity of Sri Lanka is likely to develop into a low-pressure area around the next 36 hours. Therefore, the prevailing showery conditions over the island are expected to continue during the next few days.

Showers or thundershowers will occur at times in most parts of the island and Cloudy skies are expected, under the influence of the aforementioned system. Heavy showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

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Treasury theft: Speaker’s conduct brought to IPU’s attention: SJB  

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Dayasiri

SJB MP Dayasiri Jayasekera has sought the intervention of the Inter-Parliamentary Union (IPU) to pressure the JVP-NPP government to respect the rights of the Opposition.

MP Jayasekera told The Island that they wouldn’t allow the NPP to suppress the truth regarding the theft of Treasury funds amounting to USD 2.5 million. He accused Speaker Dr. Jagath Wickremaratne of depriving the Opposition of its legitimate rights, at the behest of the government.

Jayasekera said that the Speaker’s conduct regarding the action taken against Deputy Secretary General of Parliament Chaminda Kularatne, too, had been brought to the notice of IPU and other international associations.

The text of MP Jayasekera’s letter to the Secretary general of IPU: “I respectfully submit this petition seeking the attention and intervention of the Inter-Parliamentary Union concerning a matter affecting parliamentary accountability, the rights of elected representatives, and the proper functioning of constitutional oversight within the Parliament of Sri Lanka.

On 06 May 2026, I Dayasiri Jayasekara MP submitted a formal request to the Hon. Speaker of Parliament seeking permission, under the Parliament (Powers and Privileges) Act No. 21 of 1953 and Standing Order 29(1), to raise a question of privilege regarding alleged constitutional and parliamentary violations by Mr. Harshana Suriyapperuma, Secretary to the Treasury of Sri Lanka.

The proposed privilege motion raised matters including:

1. Alleged violations of Articles 148, 149, and 150 of the Constitution of Sri Lanka concerning parliamentary control over public finance;

2. Alleged failure to report to Parliament concerning a controversial and unlawful transfer of approximately USD 2.5 million from the Treasury;

3. Alleged non-compliance with parliamentary committee procedures under the Standing Orders of Parliament;

4. Questions relating to constitutional eligibility under Article 91(1)(d)(xiii) of the Constitution concerning dual citizenship and qualification to sit and vote in Parliament;

5. A request that the matter be referred to the Parliamentary Ethics and Privileges Committee established under Standing Order 118.

 Despite the seriousness of the constitutional and parliamentary issues raised, the Hon. Speaker declined permission for the privilege issue to be raised in Parliament.

It is respectfully submitted that this refusal has the effect of:

•  Preventing an elected Member of Parliament from exercising his parliamentary oversight function;

• Restricting parliamentary scrutiny over matters involving public finance and constitutional accountability;

•  Undermining the privileges of Members of Parliament to raise matters of urgent public importance;

•  Limiting institutional transparency concerning allegations involving senior state officials.

The right of parliamentarians to raise questions of privilege and matters relating to constitutional governance is an essential component of parliamentary democracy and legislative independence. The refusal to permit even the presentation or preliminary consideration of such a matter raises serious concerns regarding parliamentary accountability mechanisms in Sri Lanka.

Accordingly, I respectfully request that the Inter-Parliamentary Union:

1.Take cognizance of this matter as one affecting the rights and functions of Members of Parliament;

2.Seek clarification from the relevant parliamentary authorities in Sri Lanka regarding the grounds upon which the privilege motion was disallowed;

3.Consider whether the refusal is compatible with internationally recognised principles of parliamentary democracy, accountability, and freedom of parliamentary speech;

4. Encourage the Parliament of Sri Lanka to ensure fair and transparent procedures governing parliamentary privilege motions and constitutional oversight.

I further request that this communication be placed before the appropriate committee or mechanism within the IPU dealing with the rights and duties of parliamentarians.”

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Navin calls for formal alliance between UNP and SJB

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UNP Vice President and Kandy District Leader, Navin Dissanayake, on Saturday, stressed that any proposed merger between the UNP and the SJB must be carried out formally rather than in an ad hoc manner.

Addressing a media briefing in Kandy, Dissanayake said a structured framework was essential to ensure the successful reunification of the two parties ahead of future elections.

“A formal mechanism must be established for the unification of the UNP and the SJB. This process cannot be confined to personal verbal assurances given to suit individual interests. We must build a strong framework to contest future elections as a united force,” he said.

He added that the UNP could only regain political strength by reuniting with factions that had broken away from the party.

Dissanayake also claimed that the Government would be compelled to hold Provincial Council elections amid mounting international and domestic pressure.

“India is exerting pressure to conduct these elections, while the people in the North are also demanding governance under the Provincial Council system. They are awaiting the polls,” he said.

Announcing his own political intentions, Dissanayake said he hoped to contest as the Chief Ministerial candidate for the Central Province at the next Provincial Council election.

“I intend to contest as the Chief Ministerial candidate for the Central Province. Having served as a Governor, I understand the extent of service that can be delivered to the people through a Provincial Council,” he said.

Recalling the history of constitutional devolution, Dissanayake said his late father, Gamini Dissanayake, had played a significant role in the introduction of the 13th Amendment to the Constitution of Sri Lanka.

by SK Samaranayake

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