News
Importers, exporters scapegoated for shortage of foreign currency
by Sanath Nanayakkare
Sri Lankan importers and exporters are blamed for the mismatch in cash flows into the country even though the problem is due to successive governments having borrowed heavily from international lenders beyond their means without any sustainable strategy to repay those loans, says an expert.
At a virtual press briefing held by the Central Bank of Sri Lanka yesterday, Deputy Governor Dhammika Nanayakkara responding to a question on the shortage of foreign currency liquidity in the market said: “On the one hand, importers are looking to frontload their imports assuming the rupee will depreciate and their import costs will go up. They borrow rupees and purchase dollars from the market and try to hoard goods. On the other hand, exporters are holding on to their dollar balances without converting them into rupees thinking they can sell them at a higher value and make a gain when the dollar appreciates. But the export proceed conversion rule which came into effect on May 28, requires exporters to convert 25 percent of repatriated proceeds with possible exemptions up to 10 percent for specific export sectors or industries or individual exporters based on their import input requirements.”.
“Another tactic the commercial banks are adopting is when there is a lot of demand to open letters of credit (LCs) for imports, the banks ponder over the real necessity to import such goods and act on it. That is why a particular bank would ask importers to come and open their LC on another day or Bank A would ask a prospective importer to go to Bank B for this purpose. However, so far this has not affected the import of essential or intermediary goods, the Bank said.
Central Bank Governor Prof. W. D Lakshman said: “We have introduced measures to rationalise selected non- essential imports. We have proposed to the government to put strict regulations to curb the import of non-essential goods and this is still at discussion level. Some proposals we make to the government are accepted and some are not.” He said this responding to a question whether household electric goods and items which are identified by some sections as luxury goods would also come under the import ban anytime soon.
Central Bank’s Director of Economic Research Dr. Chandranath Amarasekara referred to the rule of mandatory conversion of 10% of workers remittances to rupees by banks on a weekly basis as another measure to add to build up the foreign exchange reserves.
Speaking to the media on July 5, State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal said both exporters and importers were willing to cooperate with the government to find a solution to the foreign exchange liquidity issue, as it would be beneficial for all stakeholder in the long term.
News
Law will be enforced against all those who acquire assets illegally- State Minister Chathuranga Abeysinghe
State Minister of Industries and Entrepreneurship, Chathuranga Abeysinghe, while addressing a public gathering held at the Raffles Hotel in Kotte on Tuesday [April 22] said that the law will be enforced against all those who acquire assets illegally.
He said that , if someone joins a municipal council receiving a modest salary and, within two to three years, builds a luxury house and acquires a vehicle, we will question how such wealth was amassed. If a satisfactory explanation cannot be provided, the law will be enforced and the measures will be taken to confiscate any illegally acquired assets.
The opposition frequently levels accusations against us, but we have not engaged in any wrongdoing. We have not misappropriated public funds, used undue influence to secure school admissions for our children, or interfered with law enforcement. We are dedicated to serving the people by upholding an ethical and responsible political culture.
If you wish to develop your community, I respectfully urge you to elect individuals of integrity who will not misuse public funds.
[Prime Minister’s Media Division]
It has been reported that prison officials and the police have brought the unrest among the 500 plus inmates of the Matara prison which commenced on Tuesday [22] under control by this morning (23)
It has been reported that the inmates had broken out of their wards after which the officials were compelled to fire in the air and use tear gas to bring the situation under control.
The inmates are being temporarily transferred to the Angunkolapelessa prison in groups to enable authorities to repair the the damage caused to the wards and cells within the premises.
The prison officials who were injured during the conflict are receiving treatment at the Matara hospital. 
Latest News
Local government authorities and Municipal Councils are the nursery of corrupt politics. – Prime Minister
The Prime Minister stated that the President has challenged all ministers to transparently and efficiently spend the funds allocated to each ministry through the national budget for the benefit of the people, and that the local governments and municipal councils have historically been the nursery grounds of corrupt politics.
The Prime Minister made these remarks while addressing a public gathering held at the Raffles Hotel in Kotte on Tuesday [April 22].
The Prime Minister further stated:
“All 159 of us in Parliament today did not enter through family or financial influence. We are ordinary citizens just like you and individuals who stand among you. Unlike in the past, our members do not behave disruptively in Parliament. When school children visit, there is no need for the Speaker to request their removal that our parliamentary members conduct themselves with dignity, adherence to the law, and political maturity.
This is the kind of Parliament we have always aspired to have. Today, it is you who has made this transformation possible. For a long time, we have not experienced the advantages of an efficient and properly functioning local government. You now have the opportunity to elect representatives who are truly committed to serving you and improving your local institutions.
The event was attended by Arosh Athapaththu, Sri Jayawardenapura Kotte Municipal Council candidate representing the National People’s Power, along with several other candidates and a large number of local residents.
[Prime Minister’s Media Division]
-
Business5 days agoDIMO pioneers major fleet expansion with Tata SIGNA Prime Movers for ILM
-
News4 days agoFamily discovers rare species thought to be extinct for over a century in home garden
-
Features7 days agoNipping the two leaves and the bud
-
Features6 days agoProf. Lal Tennekoon: An illustrious but utterly unpretentious and much -loved academic
-
Features7 days agoAvurudu celebrations … galore
-
Foreign News4 days agoChina races robots against humans in Beijing half marathon
-
News7 days agoCounsel for Pilleyan alleges govt. bid to force confession
-
Editorial5 days agoSelective use of PTA