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Prez should explain why he scrapped time-tested exchange controls – NFF

Published

2 years ago

2023/03/10

By Shamindra Ferdinando

President Ranil Wickremesinghe, who is also the Finance Minister, should take immediate steps to restore the provisions of Exchange Control Act (ECA) of 1953 as part of the overall efforts to stabilise the national economy, NFF MP Jayantha Samaraweera told The Island yesterday (09).

The former State Minister said that furthermore UNP leader Wickremesinghe owed an explanation as to why his government introduced the current Foreign Exchange Act in 2017. The Kalutara District lawmaker said that President Wickremesinghe couldn’t remain silent as it was his government that disposed of the Exchange

Control Act of 1953, thereby paving the way for exporters to park export proceeds running into billions of dollars abroad.Responding to queries, MP Samaraweera said that he had raised the accountability on the part of President Wickremesinghe in parliament on March 08.

Acknowledging that though the economic situation had slightly improved over the past several weeks, MP Samaraweera said that Wickremesinghe-Rajapaksa government should take remedial measures to plug the loopholes or face the consequences. “The current Exchange Act introduced during Ravi Karunanayake’s tenure as the Finance Minister is perhaps one of the major reasons for the continuing crisis,” the former JVPer said.

The issue at hand was whether somebody in the yahapalana government benefited by repealing the time-tested exchange control laws, MP Samaraweera asked, underscoring the need to examine this matter carefully. “The possibility of a conspiracy cannot be ruled out. All of us know how the UNP perpetrated Treasury bond scams, twice, in Feb 2015 and March 2016. The new Exchange Control Act was enacted in the wake of Treasury bond scams,” MP Samaraweera pointed out.

Referring to a statement made by Trade Minister Nalin Fernando in Parliament on Wednesday, MP Samaraweera said that the government had lost the wherewithal to meet its basic obligations as it didn’t have foreign exchange.

Now, the UNP leader who created an environment for exporters not only to stash away export proceeds overseas and oversaw the Treasury bond scams, held the finance portfolio, MP Samaraweera said. Wickremesinghe should set a deadline for restoring the old Foreign Exchange Act, the MP said, recalling how the UNP leader publicly acknowledged the need to amend the 2017 Act.

MP Samaraweera told parliament on Wednesday President Wickremesinghe couldn’t afford to turn a blind eye to the declaration made by Justice Minister Dr. Wijeyadasa Rajapakse, PC, early last December on the basis of disclosure made by the US-based Global Financial Integrity watchdog that as much as USD 58 bn were parked overseas.

The MP pointed out that in addition to Minister Rajapakse, Opposition lawmakers Vasudeva Nanayakkara, Wimal Weerawansa and Gevindu Cumaratunga, in Parliament, estimated the stashed amount at over USD 35 bn, MP Jayaweera said. The trio has alleged that the Exchange Control Act No 12 of 2017, enacted during the yahapalana administration, allowed exporters to keep funds overseas.

MP Jayaweera said that President Wickremesinghe should inform the parliament without further delay how he intended to address the issue. “We obtained about USD 4 bn in 2022 from India. On top of that Sri Lanka owes the world as much as USD 53 bn. No one should forget that the situation stabilised to an extent as a result of Sri Lanka halting debt servicing,” MP Samaweera said.

Asked why President Gotabaya Rajapaksa’s government didn’t amend the yahapalana Exchange Control Act, MP Samaraweera said that NFF leader Wimal Weerawansa had taken up the issue with the Cabinet-of-Ministers. However, Basil Rajapaksa, who succeeded Mahinda Rajapaksa as the Finance Minister in June 2021 had dismissed the NFF’s recommendation, MP Samaraweera said, adding that Basil had declared that restrictions would discourage exporters. In fact, General Secretary of the Democratic Left Front (DLF) Vasudeva Nanayakkara proposed the introduction of a ‘QR’ system in 2021 in view of the foreign exchange crisis, MP Jayaweera said. That proposal, too, was rejected by Basil Rajapaksa, he said.

The MP stressed the need to tackle quite a formidable challenge posed by well-organised influential public–private sector partnership engaged in ‘over invoicing’ and ‘under invoicing’, with the blessing of successive governments. That too contributed to the forex crisis, the MP said.

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Indian Prime Minister Shri Narendra Modi concludes State Visit to Sri Lanka

Published

9 hours ago

2025/04/6

Priyan

Indian Prime Minister Shri Narendra Modi departed today (06) from Air Force Base Anuradhapura concluding his State visit to Sri Lanka. The Indian Premier embarked on a tour to Sri Lanka at the invitation from President Anura Kumara Disanayake.

This visit underscores the enduring relationship encapsulated by the theme “Friendship of Centuries, Commitment to a Prosperous Future,” further solidifying the bonds between India and Sri Lanka.

This marks Prime Minister Modi’s fourth visit to Sri Lanka, which has further enhanced the economic, cultural, and historical relations between the two nations, while also reinforcing their multifaceted partnership. This visit by the Indian Prime Minister reinforces Sri Lanka’s important role in India’s “Neighbourhood First Policy” and ‘MAHASAGAR’ vision concerning diplomatic relations.

This state visit is anticipated to yield significant results on various collaborative initiatives, fostering a path towards mutual growth and development. The citizens of Sri Lanka will soon be able to witness the fruitful outcomes of these partnerships, and Indian Prime Minister Shri Narendra Modi’s visit will mark a significant milestone in the government’s pursuit of sustainable development focused on the needs of the people.

Accompanying Indian Prime Minister Modi were Indian External Affairs Minister Dr. S. Jaishankar, National Security Advisor Ajit Doval, Foreign Secretary Vikram Misri and a delegation of senior officials from the Indian government.

[PMD]

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President Dissanayake and Indian PM Modi jointly commission upgraded Maho-Omanthai railway line & Maho-Anuradhapura railway signalling system

Published

9 hours ago

2025/04/6

Priyan

The upgraded Maho–Omanthai railway line and the newly installed Maho–Anuradhapura railway signalling system were officially commissioned by Indian Prime Minister Shri Narendra Modi and President Anura Kumara Disanayake today (06)

The Prime Minister of India is currently visiting Sri Lanka at the invitation of President Anura Kumara Disanayake, reinforcing the longstanding bond encapsulated in the theme “Friendship of Centuries Commitment to a Prosperous Future” between the two nations.

Highlighting one of the key aspects of this visit, the two leaders participated in these inaugural ceremonies. The President and the Prime Minister of India jointly unveiled the commemorative plaque and commissioned the railway line and signalling system.

The upgraded Maho-Omanthai Railway Line project was carried out with funding through the Indian Credit Line, totalling an investment of US$ 91.27 million. The Maho–Anuradhapura railway signalling system, established as a result of President Disanayake’s recent visit to India, was funded by the Indian Government at a cost of USD 14.89 million.

[PMD]

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Prime Minister Modi and President Dissanayake pay homage to the sacred Jaya Sri Maha Bodhi

Published

9 hours ago

2025/04/6

Priyan

Indian Prime Minister Shri Narendra Modi, currently on a State visit to Sri Lanka, along with President Anura Kumara Disanayake paid homage to the sacred Jaya Sri Maha Bodhi in Anuradhapura this morning (06) and received blessings.

Following his visit to the sacred site, Prime Minister Modi proceeded to the Udamaluwa, where he met with the Chief Incumbent of the Atamasthanadhipathi and Chief Sanghanayake of Nuwarakalaviya, Most Venerable Dr. Pallegama Hemarathana Nayaka Thera, for a cordial discussion.

During the meeting, the Prime Minister shared that relics of the Buddha were discovered in excavations conducted in his home state of Gujarat during the 1960s. He further stated that he would discuss with the President of Sri Lanka the possibility of exhibiting these sacred relics in Sri Lanka.

Responding to a request made by the Atamasthanadhipathi to develop Bodh Gaya as a spiritual city, Prime Minister Modi assured that he would take the necessary steps after discussions with President Disanayake and work towards making it a reality.

The Maha Sangha, led by the Atamasthanadhipathi, chanted Seth Pirith and invoked blessings on the Indian Prime Minister.

The Indian Prime Minister also left a commemorative note in the special guest book at the site. In addition, he formally declared open the newly constructed ‘Makara Thorana’ within the Jaya Sri Maha Bodhi premises.

The occasion was also attended by Chief Incumbent of the Ruwanweli Maha Seya Temple Ven. Ethalawetunawewe Gnanathilaka Thera and other Atamasthana Viharadhipathi Theras, Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath, Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe, Minister of Health and Mass Media Dr. Nalinda Jayatissa, North Central Province Governor Wasantha Jinadasa, Indian High Commissioner Santosh Jha and others.

[PMD]