News
Justice Minister: SL has lost billions of dollars due to lax controls since 2017
By Saman Indrajith
Justice Minister Dr. Wijeyadasa Rajapakshe told Parliament yesterday that over 53.5 billion US dollars that should have been received by the country for its exports for the past 12 years had been held in foreign countries. “This has been revealed by the recent Global Integrity Report by the US. This has happened by the time of assuming of duties by the incumbent Governor of the Central Bank. I have information that after assuming duties he had called on top 100 exporters and asked for details and reports of their volumes of export and incomes. Only 57 exporters responded and of them too the majority have provided the Central Bank with false information or concealed the true figures. This is a serious issue because our outstanding loans for that year amounted to about USD 41 billion. The amount being held in foreign countries as payments for exports due to this country was USD 53.5 billion,” the Minister said.
Minister Rajapakshe said that the unfortunate situation had been created by the fraudulent exporters making use of the loopholes in the foreign exchange law. “Prior to 2017, we had the Exchange Control Act, which had strict provisions and regulations controlling the outflows and inflows of foreign exchange. Even during the times of the Sirimavo Bandaranaike government a special Foreign Exchange Commission was set up to investigate the errant businessmen who resorted to misinvoicing. I can recall how some businessmen who were found guilty were imprisoned. Some died in the prisons. In 2017, the Foreign Exchange Act was
introduced. It relaxed many strict rules and punishments or did away with some of them. Making use of these holes of the regulatory net, many exporters have shifted export proceeds overseas. We either need to amend these laws or to bring in new laws to prevent this because this is one of the main reasons for the economic crisis we are facing today,” the Minister said, adding that all other countries had strict rules preventing mis-invoicing. “We have informed the Finance Ministry of this need,” he said.
SJB MP Champika Ranawaka said that the amount of money lost by Sri Lanka annually was equal to its balance of payments deficit. “This is done by both exporters and importers. This misinvoicing could either be overinvoicing or underinvoicing. The amount that we lose annually is over 20 percent of our total foreign trade,” Ranawaka said.
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Sun directly overhead Mannar, Periyamadu, Puliyankulam, Welioya and Pulmoddai about 12.11 noon today (30)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (30) are Mannar, Periyamadu, Puliyankulam, Welioya and
Pulmoddai about 12.11 noon.
(AFP) Sri Lanka’s maritime authorities were monitoring a fleet of 11 US-sanctioned Iranian oil tankers just off the island’s southern coast, the foreign minister said Wednesday.
The tankers were spotted close to the Galle harbour where an Iranian frigate, IRIS Dena, was sunk by a US submarine in March, killing 104 sailors. Sri Lanka’s navy rescued 32 Iranian sailors from that frigate.
Iranian vessels have been in limbo, unable to return to their home port because of a US blockade.
Sri Lanka’s Foreign minister Vijitha Herath said the tankers were in international waters where they had freedom of navigation.
“These ships are away from our territorial waters… we have no hold on them, nor have we facilitated them,” Herath told AFP.
The military deployed reconnaissance aircraft and patrol boats to monitor the vessels outside Sri Lanka’s 12-nautical-mile territorial waters, a military official told AFP on condition of anonymity.
“There is no indication of any ship-to-ship transfer of oil or illegal discharge of pollutants, so there is no basis for Sri Lankan authorities to take action against them,” the official said.
Many Iranian merchant vessels moved east towards the Strait of Malacca and Singapore due to US sanctions, while several remained near Sri Lankan waters, authorities said.
Sri Lankan officials said Washington had not formally notified Colombo about sanctioned Iranian-flagged vessels
Parliament is to debate next Wednesday the Government’s proposal to abolish the post of Chief of Defence Staff (CDS), with the Second Reading of the Chief of Defence Staff (Repeal) Bill scheduled for September 9.
The Bill seeks to repeal the Chief of Defence Staff Act No. 35 of 2009, which was introduced shortly after the end of the armed conflict.
According to Secretary General of Parliament Kushani Rohanadeera, Parliament will meet from September 8 to 11, with the business for the week approved by the Committee on Parliamentary Business chaired by Speaker Dr. Jagath Wickramaratne.
The debate on the Chief of Defence Staff (Repeal) Bill is scheduled to take place from 11.30 a.m. to 5 p.m. on Wednesday, following questions to the Prime Minister and other parliamentary business.
The CDS post was established under the 2009 Act as part of the country’s higher defence command structure.
On Tuesday, September 8, the House will consider two Orders published in Extraordinary Gazettes under the Motor Traffic Act from 11.30 a.m. to 5 p.m., followed by an Opposition motion at the adjournment.
On Thursday, September 10, Parliament will debate a Resolution under the Women’s Empowerment Act.
The final sitting day of the week, Friday, September 11, has been allocated from 11.30 a.m. to 5.30 p.m. for several Private Members’ Motions.
The motions will cover issues including regulation of the petroleum, fuel and water industries, measures to increase the birth rate, protection of the Diyagama Forest, pension deductions affecting Pirivena teachers, food-crop cultivation in mountainous areas, development of the Kithul industry and the establishment of a Faculty of Medicine at South Eastern University.
Questions at the adjournment will be taken up at the end of each sitting day.
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Showers in the Sabaragamuwa, Western and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts
Sun directly overhead Mannar, Periyamadu, Puliyankulam, Welioya and Pulmoddai about 12.11 noon today (30)
Lanka tracks 11 US-sanctioned Iranian tankers off coast
House to debate abolition of Chief of Defence Staff post
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