News

Importers, exporters scapegoated for shortage of foreign currency

Published

5 years ago

2021/07/9

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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Geneva takes up Sallay’s case and govt. ignores opportunity to answer accusations

Published

14 hours ago

2026/10/5

Thilina Walpola

Suresh Sallay

The government has chosen not to respond to questions raised by the United Nations Human Rights Council (UNHRC) regarding the detention of retired Maj. Gen. Suresh Sallay in connection with the ongoing investigations into the 2019 Easter Sunday attacks.

The Criminal Investigation Department (CID) arrested the ex-official in late February this year. The Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism, the Working Group on Arbitrary Detention, the Special Rapporteur on the right of everyone to the enjoyment of the highest attainable standard of physical and mental health and the Special Rapporteur on the independence of judges and lawyers have jointly raised the issue on 20 July, 2026.

Drawing attention of President Anura Kumara Dissanayake to what they called alleged arbitrary detention of Sallay, former Director General of the State Intelligence Service (SIS) and former Director of Military Intelligence (DMI), under the Prevention of Terrorism Act (PTA), as well as allegations of torture and other cruel, inhuman or degrading treatment while in custody, resulting in the grave deterioration of his health, and imminent risks of retaliation through further torture and ill-treatment resulting in irreparable harm, should he be released from hospital and returned to custody, the UN sought the government explanation with a 60-day period.

The UN has stated: “This communication, and any response received from your Excellency’s Government, will be made public via the communications reporting website at the 60 days mark. Should your Excellency’s Government respond within 60 days, both the communication and the response, may be published before the 60 days mark. The communications and responses

will also be made available in the subsequent periodic report to be presented to the Human Rights Council.”

In the absence of the government’s response, the UN posted the letter, dated 20 July, 2026, addressed to President Dissanayake. The full letter can be accessed https://spcommreports.ohchr.org/TMResultsBase/DownLoadPublicCommunicationFile?gId=31125

News

Section of wartime KKS High Security Zone vacated to facilitate economic development in the area

Published

14 hours ago

2026/10/5

Thilina Walpola

The Army, last week, vacated an area, within the wartime high security zone in the Jaffna peninsula. The Defence Ministry said that an extent of 187.56 acres of land, belonging to the Cement Corporation in Kankesanthurai, Jaffna, has been released by the military. The released land, located in Grama Niladhari Division J/233, Kankesanthurai West, within the Valikamam North (Tellippalai) Divisional Secretariat Division, had been utilised by the Sri Lanka Army since the middle of 1997.

The release of the 187.56-acre extent forms part of the initiative to make State land available for the proposed investment zone in Kankesanthurai, thereby facilitating future investment and economic development in the area.

News

Lawyer lodges complaint against Govt. Printer, Media Ministry Secy.

Published

14 hours ago

2026/10/5

Thilina Walpola

A complaint has been lodged with the Colombo Fraud Investigation Bureau against the Government Printer and the Secretary to the Ministry of Media regarding the online release of falsified documents bearing a forged Speaker’s certificate.

Attorney-at-Law Aruna Laksiri has lodged a complaint with the Colombo Fraud Investigation Bureau requesting legal action against the Government Printer of the Department of Government Printing (No. 118, Dr. Danister de Silva Mawatha, Colombo 08), Prasanna Jayaratne, and the Secretary to the Ministry of Mass Media (Asidisi Medura, 163, Kirulapone Mawatha, Polhengoda, Colombo 05), Dr. Anil Jasinghe.

The complaint alleges the commission of offences by forging and uploading falsified documents online using a forged Speaker’s certification, failure to perform statutory duties, and misappropriation of public property.

The complaint states that a copy of the English translation of the 22nd Amendment to the Constitution was downloaded and printed from the official website of the Government Printing Department (www.documents.gov.lk), which operates under the Ministry of Mass Media. On its outer cover and on page 1, the text “certified on 25th of September, 2026” is inscribed inside brackets.

The complaint pointed out that the Speaker has certified an English translation. Under Articles 23, 79, 83, and 80 of the Constitution, Parliament enacts laws and the Speaker certifies bills strictly in the Sinhala and Tamil languages; under the Constitution, therefore the Speaker cannot apply such certification to an English translation.