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.
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Landslide Early Warnings issued to the districts of Kalutara, Kandy, Nuwara Eliya and Ratnapura
The National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Kalutara, Kandy, Nuwara Eliya and Ratnapura effective from 0400hrs on 12th June 2026 to 0400hrs on 13th June 2026
Accordingly,
LEVEL I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Palindanuwara in the Kalutara district, Doluwa in the Kandy district, Ambagamuwa in the Nuwara Eliya district and Pelmadulla, Ayagama, Ratnapura, Godakawela, Kalawana and Nivitigala in the Ratnapura district
News
Wife, counsel seek regular access to ex-Spy Chief Sallay held under President’s detention order
Wife of former State Intelligence Chief Maj. Gen. (Retd.) Suresh Sallay has asked CID Director retired SSP Shani Abeysekera to allow her, her family members and lawyers to visit her husband in the National Hospital, Colombo. Sallay’s counsel has also written to Abeysekera, asking for permission to visit the former spy held on a detention order signed by President Anura Kumara Dissanayake.
The text of Manori’s letter: “I respectfully request your assistance in granting me, and my daughter or alternatively my son, permission to visit my husband, Rtd. Major General Suresh Sallay, who is currently at the National Hospital, Colombo.
“As you are aware, my husband is presently engaged in a fast-unto-death campaign. His physical condition and emotional well-being are of deep concern to our family. During this difficult period, the presence and support of his immediate family are extremely important to him.
“I firmly believe that regular visits from me with our daughter or our son would help uplift his spirits, provide him with much-needed emotional strength, and may encourage him to reconsider continuing this course of action. Family support can play a vital role in preserving his mental and emotional health while he remains hospitalised.
“In view of these exceptional circumstances, I kindly request that permission be granted for either me and my daughter or my son to visit him daily during the period of his hospitalisation.
“I would be most grateful for your compassionate consideration of this request.”
“The text of the counsel’s letter: “I write in my capacity as Counsel for Rtd. Major General Suresh Sallay, who is presently under detention and admitted to the National Hospital, Colombo.
As you are aware, Major General Sallay has embarked on a fast-unto-death campaign, giving rise to serious concerns regarding his physical and mental well-being. In these circumstances, it is imperative that I be granted reasonable and regular access to my client during his hospitalisation.
As his legal representative, I have a professional obligation to monitor his condition and obtain instructions from him so that I may accurately apprise the relevant courts of his health status and any developments affecting his rights and welfare. Effective legal representation requires continuous communication with my client, particularly in light of the grave circumstances presently confronting him.
I also wish to respectfully highlight that Major General Sallay has placed explicit trust and confidence in me as his counsel. Indeed, I was the first person he contacted following his arrest.
Given the trust he reposes in me, I believe I am uniquely positioned to engage with him constructively and persuade him to discontinue this campaign and instead place his confidence in the legal remedies and judicial processes available to him.
For these reasons, I respectfully request that I be granted permission to visit my client on a daily basis during the period of his hospitalization.
Such access would not only facilitate the discharge of my professional responsibilities but may also contribute meaningfully towards safeguarding his health and encouraging a resolution through lawful and institutional means.
News
CIABOC summons Yoshitha over his participation in British Navy training programme
Yoshitha Rajapaksa, who served as a Lieutenant in the Sri Lanka Navy, has now been summoned to the Commission to Investigate Allegations of Bribery or Corruption next Tuesday (16) for questioning over his participation in a Royal Navy training programme in the United Kingdom outside established procedures.
The Commission is expected to record statements in relation to several complaints received regarding his recruitment and subsequent service in the Navy after he enlisted on December 14, 2006.
According to sources, the investigation focuses on allegations concerning the educational qualifications considered at the time of his enlistment, as well as foreign training opportunities he is said to have received while in service, which are suspected to have been granted in violation of due process.
The Bribery Commission has launched the inquiry under the provisions of the Anti-Corruption Act, officials said.
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