Connect with us

News

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

Published

on

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.



Latest News

Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity – PM

Published

on

By

Prime Minister Dr Harini Amarsooriya in her message on International Women’s Day 2026 says that the governments goal is to build a Thriving Nation where a woman can walk without fear or doubt, where her  talents are duly recognized, and where she can lead a life of dignity.

The PM’s message:

“I extend my greetings to all sisters and daughters in Sri Lanka and around the globe on the occasion of International Women’s Day.This year, the United Nations has declared the global theme for International Women’s Day as “Rights. Justice. Action. For ALL Women and Girls,” emphasizing the realization of rights, the delivery of justice, and meaningful action for all women and girls.

Women are the true pillar of Sri Lankan society and economy. The role they play within the family and in society has today become a decisive factor in shaping the future of our nation. Through the Government’s policy statement, “A Thriving Nation – A Beautiful Life,” we envision going beyond treating women as mere beneficiaries and recognizing them as active partners in national development, ensuring that they receive the dignity and opportunities they rightfully deserve.

Within our policy framework, special focus has been placed on women. We are committed to recognizing the economic contribution extended by women as housewives, promoting women’s entrepreneurship, and expanding access to the technical and financial support necessary for self-employment alongside strengthening the legal framework required to ensure women’s safety in public transport, workplaces, and within the family environment. Further, we are taking steps to create the environment to increase women’s representation in decision-making bodies at national and regional levels. Special attention is also being given to implementing targeted programmes aimed at improving women’s nutrition, reproductive health, and mental well-being.

Women are not a group seeking sympathy; they are vital social partners endowed with intelligence, resilience, and creativity. Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity

On this International Women’s Day, I sincerely hope that it marks the beginning of a new era in which the aspirations of all women in our country are realized as they shine before the world.

Continue Reading

Latest News

Heat Index at Caution Level in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

Published

on

By

Warm Weather Advisory issued by the Natural Hazards Early Warning Centre of the Department of Meteorology  at 3.30 p.m. on 07 March 2026, valid for 08 March 2026.

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

Continue Reading

News

Lanka tea industry may lose $ 10-15 mn per week from ME war

Published

on

The ongoing military conflict in the Middle East has adversely impacted on the Sri Lankan tea industry as the exporters are unable to supply tea to the region. The exporters estimate the revenue loss at about $ 10-15 million per week. The exporters have orders in hand for supply of tea and it is the logistical issues and war risk preventing them fulfilling such orders, the Tea Exporters Association (TEA) said in a statement.

“In order to mitigate the impact on the industry, the tea industry has jointly requested the government to support it in addressing the cash flow issue and consider absorbing a part of the additional freight and insurance charges. It has also requested government intervention to obtain the balance payment of about $ 50 million due on tea shipments already made to Iran under the barter deal,” TEA said on Friday.

The statement said approximately 52% of Sri Lanka’s tea exports reach the affected region mainly coming from the low grown area of the country dominated by tea smallholder farmers. According to 2025 tea export statistics, about 125 million kilograms of Ceylon tea were exported to the Middle East, with an estimated value of USD 750 million. The major importing countries of Ceylon Tea in the region include Iraq, Iran, Libya, Turkey, Saudi Arabia, Syria, and the United Arab Emirates. Though Libya and Turkey can be reached via Africa, the exorbitant freight charges have prevented the buyers in those countries from importing tea at the moment.

The supply routes to Middle East countries go via Strait of Hormuz and Red sea Suez Canal. Although there is no blockade on Suez Canal, due to the war risk both channels are currently not used by the major shipping lines. The tea exports to the region have almost come to a standstill due to the following reasons:

=All major shipping lines suspended their services to the region immediately after the outbreak of the conflict.

=Several seaports in the region were temporarily closed during the initial stages.

= Although a few shipping lines resumed limited operations from March 4, freight charges have

increased significantly by approximately USD 1,800 for a 20’ container and USD 3,000 for a 40’ container.

= Existing insurance coverage obtained by exporters is no longer valid.

=There is a lack of regular and scheduled vessels operating from Colombo to Middle Eastern destinations.

The tea exporters are experiencing serious cash flow constraints, as payments for shipments already

dispatched have been delayed due to the unsettled situation in the region. This has restricted exporters’

buying capacity and that was evident at this week’s tea auction, where overall prices declined by about Rs. 50/ per kg while low grown tea prices declined by about Rs. 75/ per kg.

If the situation continues for few more weeks it will have a serious impact on the tea auction as buyers may curtail the purchase of tea if the outward movements are restricted. This could directly impact on the income of the tea smallholder farmers.

In January 2026, the country earned $ 121.8 million from tea exports compared to $ 112.7 million in January 2025 (a 5% increase). The figures for February 2026 are not yet available but should be either similar to last year or higher. The disruption to tea exports in March will certainly affect the volume and value of the exports though the exact amounts cannot be estimated at this point.

According to the available data Sri Lanka has settled about 95% of its debt to Iran by supplying tea to Iran under the Tea for Oil mechanism. Even if the military conflict comes to an end, Sri Lanka will find it difficult to continue to supply tea to Iran unless a new mechanism is introduced. Under the prevailing US sanctions on Iran, the exporters may not be able to supply tea to Iran outside the barter system. Iran purchases about 11 million kg of tea from Sri Lanka annually under the barter deal.

The situation was discussed with the Minister of Plantation & Community Infrastructure at a meeting held on March 4, 2026.

Continue Reading

Trending