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Remittances through official channels up 78% in March

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ECONOMYNEXT –The country’s remittances through official channels rose to 568 million US dollars in March 2023, up 78 percent from a year earlier, as unofficial premiums declined with the central bank applying the brakes on money printing.

Sri Lanka’s monthly remittances coming through official channels ranged around 500 to 600 million US dollars a month, before the central bank started to print money to target an output gap in early 2020.

In 2020 due to weak credit amid Covid 19, excess liquidity in the banking system from mis-targeted rates did not initially result in parallel premiums as import demand was weak.As credit picked up in 2021 and liquidity was used up in credit, reserves were lost and forex shortages started to intensify.

Two parallel exchange rates emerged in the banking system as economic activity recovered in 2021 and policy rates were kept down and the central bank operated both money and exchange rate policy as legalized in a planned new Monetary Law Act.

One parallel floating exchange rate was unofficially operating in the banking system where exporters and importers bought dollars from each other at the price driven by liquidity injections and settled the premium off market.

Another parallel exchange rate existed in a premium offered to VOSTRO inflows, which blocked funds going to Undiyal and kept essential imports such as food and inputs financed according to the price determined by monetary policy.

Parellel premiums were also pushed up by money given as incentives to inflows coming through the banking channels.Around September 2022 both semi-official parallel floating exchange rates coming from the money and exchange conflicts were banned, shifting large volumes of remittances to the fully unofficial market.

In April 2022 rates were hiked, but interventions were made from Indian Asian Clearing Union (ACU) credit and sterilized with printed money through inflationary open market operations.

After India stopped given ACU credits, inflationary open market operations petered off, the external sector started to stabilize, and import demand and parallel premiums adjusted, analysts have said.



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Heat Index is likely to increase up to ‘Caution level’ at some places in the North-central and Eastern provinces and in Mannar, Vavuniya and Monaragala districts during the daytime

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 08 May 2026, valid for 09 May 2026

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the North-central and Eastern provinces and in Mannar, Vavuniya and Monaragala districts during the daytime

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 the 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.

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SLPP expresses concern over death of former SriLankan CEO

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Sri Lanka Podujana Peramuna (SLPP) General Secretary, Sagara Kariyawasam, yesterday raised serious concerns over the death of former SriLankan Airlines CEO, Kapila Chandrasena, questioning whether the incident was a suicide, murder, or a case of being compelled to take his own life.

Addressing the media, Kariyawasam claimed that Chandrasena had recently become a controversial figure after allegedly submitting an affidavit to court detailing threats made against him.

According to Kariyawasam, the affidavit stated that Chandrasena had been taken to the office of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), where he was allegedly threatened by its Director General, Ranga Dissanayake.

Kariyawasam alleged that Chandrasena had claimed he was warned to comply with certain demands or face consequences similar to those experienced by another individual, linked to a case involving former Minister Keheliya Rambukwella.

He also claimed that Chandrasena’s affidavit referred to alleged attempts to implicate former President Mahinda Rajapaksa and MP Namal Rajapaksa in legal proceedings.

Kariyawasam questioned how Chandrasena, who had reportedly been in remand custody, was able to secure two bail guarantors, and called for an immediate investigation into who introduced the guarantors and whether any prison or CIABOC officials had been involved.

He urged the courts to examine CCTV footage and conduct a comprehensive inquiry into the circumstances surrounding the provision of the guarantors.

Claiming that public suspicion surrounding the death was growing, Kariyawasam said the incident could not be dismissed as a straightforward suicide.

He alleged that several recent incidents involving complainants and suspects had raised broader concerns over the rule of law and the protection of suspects’ rights in the country.

Calling for an independent investigation, Kariyawasam urged authorities to disclose the truth to the public, stressing that even suspects are entitled to legal safeguards and protections in a democratic society.

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SC orders fresh notice on Gotabaya in compensation case

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The Supreme Court yesterday directed the petitioning party to take steps to reissue notice to former President Gotabaya Rajapaksa, who has been named as a respondent in a Fundamental Rights (FR) petition.

The petition had been filed seeking an order to recover compensation funds allegedly paid unlawfully to former Ministers and Members of Parliament whose houses were set on fire or damaged during the countrywide violence that erupted following the purported attack on the “Aragalaya” protest site on May 9, 2022.

The Supreme Court issued this order during the hearing of the Fundamental Rights petition, which was filed seeking a declaration that the payment of such compensation was unlawful.

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