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Govt. under pressure to tackle corruption in revenue inflow

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Amendments to Exchange Control Act contemplated

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (07) said the government would introduce some amendments to the Exchange Control Act No 12 of 2017 as part of its response to the continuing financial crisis.

The SLFPer mentioned that amendments were necessary to restore the authority exercised by the Central Bank in respect of regulation of foreign exchange before the enactment of the Exchange Control Act No 12 of 2017, adding that the government has received several proposals in this regard.

The State Finance Minister said so when The Island sought a clarification as regards rebel SLPP accusations that the Exchange Control Act No 12 of 2017, enacted during the Yahapalana administration, allowed exporters to ‘park’ funds overseas. Vasudeva Nanayakkara, Wimal Weerawansa and Gevindu Cumaratunga had estimated the stashed amount at over USD 35 bn.

Siyambalapitiya acknowledged that the amendments that had been introduced in 2017 deprived the Central Bank of certain regulatory powers.

The Island

raised the issue at hand with Justice Minister Dr. Wijeyadasa Rajapakse, PC, yesterday (07) consequent to his declaration that as much as USD 53.5 bn had been ‘parked’ overseas. This claim was made during the committee stage of the ongoing debate on the Appropriation Bill.

Minister Rajapakse said that Nanayakkara, Weerawansa and Cumaratunga, too, had referred to the same funds though he was able to obtain the latest figures.

Responding to another query, the former President of the Bar Association of Sri Lanka emphasised that the situation had further deteriorated due to the Covid-19 pandemic, etc. According to him, the figures available with him dealt with the past 12 years.

The Justice Minister said that he discussed this with the Central Bank. Lawmaker Rajapakse said that in the absence of regulatory powers, the Central Bank hadn’t been able to make necessary interventions.

The Governor of the Central Bank, Dr. Nandalal Weerasinghe, told The Island that the urgent need for amendments to the Exchange Control Act No 12 of 2017 had been taken up with the relevant authorities. Dr. Weerasinghe said that the ongoing controversy, over funds ‘parked’ overseas, gathered momentum against the backdrop of his recent speech, at the AGM of the Sri Lanka Apparel Exporters Association, where the inordinate delay, on the part of the exporters to convert export earnings to rupees, was highlighted.

In terms of current foreign exchange regulations, the exporters are required to convert 25 percent of their export proceeds, within a month, and all export proceeds within 180 days.

Having found fault with apparel, tea and rubber for the unsatisfactory conversion rate of forex earnings, Dr. Weerasinghe said that they were in the process of examining a selected group of exporters but realized the majority weren’t forthcoming with the required data.

The Justice Minister said that the entire revenue collection system was utterly corrupt, influenced and manipulated by interested parties. “The people are suffering because of continuing corruption at every level. Those responsible for revenue collection are part of the growing racket. They seem to be unstoppable,” he said.

Dr. Rajapakse said that there couldn’t be a better example than continuing the racket in security stickers on bottles of liquor to highlight the pathetic situation here. The Minister alleged that the racket, involving liquor manufacturers and some excise officials, deprived the Treasury a massive amount in revenue. In spite of frequent media exposure, the racket continued unabated, Dr. Rajapakse said, adding that those who defended the manufacturer of the security sticker were all part of the scam.



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Our objective is to ensure that the Commission to Investigate Allegations of Bribery or Corruption operates as an independent institution, free from any external influence – PM

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Prime Minister Dr. Harini Amarasuriya stated that the government’s objective is to ensure the environment for the Commission to Investigate Allegations of Bribery or Corruption [CIABOC] to function as an independent body, without influence from anyone, including Members of Parliament and Ministers.

The Prime Minister made these remarks while participating in the debate on the interim resolution concerning the determination of salaries and service conditions of the officers and employees of the Commission under the Anti-Corruption Act.

The Prime Minister stated:

“Honourable Speaker, I consider the proposal presented today on determining the remuneration and service conditions of the officers and employees of the Commission to Investigate Allegations of Bribery or Corruption to be highly important. Although the Anti-Corruption Act was passed in 2023, we only began to truly feel the presence of an active Commission from 2025.

Since then, we have had to experience a number of challenges in operationalizing the Commission. In particular, there were several obstacles, including limitations in recruiting officers, which hindered the Commission from functioning as required. It was necessary to establish several practical conditions, such as granting the Commission the freedom to determine allowances for its staff, to formulate the rules and regulations required for its operations, to recruit personnel, and to submit budget estimates relevant to its annual plans. At the time the new Director General assumed duties, there were over 4,000 investigation files within the Commission where investigations had been completed but cases had not yet been filed. Moreover, there were only about 31 legal officers.

Follow the adoption of this proposal, the Commission will be granted the authority to recruit officers, determine necessary allowances, and make independent decisions regarding financial matters. This will enable the Commission to effectively fulfill its intended mandate. This proposal plays a significant role in building a new political culture in our country, one that is anti-corruption and committed to a transparent public service that is free from bribery”.

Further commenting, the Prime Minister also addressed the country’s response to the ongoing global energy crisis.

“In the current global context, our economy and energy sector are facing multiple challenges. These conditions are constantly evolving and difficult to predict. However, it is our responsibility as a government to recognize these changes and manage their impact on our economy.

Following that, the Cabinet has decided to appoint four special committees. Accordingly, one committee will focus on ensuring the uninterrupted provision of essential services to the public; while another will make decisions on maintaining public services through energy management within the public sector; a third will work with the Procurement Commission to identify new methods of energy procurement in addition to existing mechanisms; and a fourth will examine the social impacts arising from this situation, including its effects on vulnerable groups, and recommend fair solutions, relief measures, and welfare services.

This is a situation that we, as a country, must face collectively. The public service, the private sector, the political leadership regardless of party differences and the people of our country must come together to overcome this, just as we have faced previous challenges. We are confident that, we will be able to successfully face this situation through proper leadership and management, and by making timely decisions.

[Prime Minister’s Media Division]

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Heat Index at ‘Caution Level’ in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts

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Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 18 March 2026, valid for 19 March 2026

The general public are cautioned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.

Indoors: Check up on the elderly and the sick.

Vehicles: Never leave children unattended.

Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.

Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Pay hike demand: CEB workers climb down from 40 % to 15–20%

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A salary increase in the range of 15 to 20 percent is currently under discussion within the Ceylon Electricity Board (CEB), though no official decision has yet been taken, The Island reliably learns.

A senior electrical engineer who is is privy to ongoing salary negotiations, speaking on condition of anonymity, said the proposal had been put forward as a reasonable and necessary measure, rather than a rigid demand, in light of the prolonged delay in salary revisions. Earlier they have been asking for a staggering 40% salary increase.

“We are not insisting on this as a primary demand or condition. What we are requesting is for the authorities to seriously consider the possibility of granting an increase,” he said.

He emphasised that CEB employees had not received any salary increment since 2024 due to the ongoing reform and restructuring process, leaving staff to cope with rising living costs without adjustment.

“Under normal circumstances, the next salary revision would only be due in January 2027. That creates a significant and unfair gap. This proposal is, therefore, a justified attempt to secure at least a reasonable percentage in the interim,” he said.

The engineer warned that continued inaction could have serious implications for staff morale and operational efficiency at a time when the power sector is undergoing critical reforms.

Sources said that while internal discussions have pointed towards a 15 to 20 percent increase, the matter has not yet been formally taken up at policy level.

However, pressure is mounting on authorities to reach a timely and equitable decision, as frustration grows among employees over the absence of salary adjustments for nearly three years.

By Ifham Nizam

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