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USD 56.5 bn parked overseas: Govt. must deal with errant exporters firmly – Justice Minister

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Wijeyadasa

By Shamindra Ferdinando

Justice Minister Dr. Wijeyadasa Rajapakshe, PC, has said the Foreign Exchange Act No 12 of 2017, enacted during the Yahapalana administration was meant to facilitate the operations of those who exploited the system for their benefit.

The new Act had repealed the Exchange Control Act of 1953, Dr. Rajapakshe said, adding that the Yahapalana  move contributed to the deterioration of the economy. He explained how, as a member of the Yahapalana parliamentary group, he had to abide by the decision to vote for the new Foreign Exchange Act No 12 of 2017.

The Justice Minister said so at a hastily arranged media briefing at his Ministry near Technical Junction on Tuesday, when The Island sought his explanation why the Yahapalana government had repealed the time-tested Exchange Control Act of 1953 and what made him vote for the new law.

Altogether 94 MPs, including Dr. Harsha de Silva and Eran Wickremaratne – two of the strongest critics of the Rajapaksa government – voted for the new law. Eighteen MPs voted against the Bill whereas the rest skipped the vote taken on July 25, 2017.

Referring to official statistics, Dr. Rajapakshe said that export proceeds amounting to a staggering USD 56.5 bn were in offshore accounts and invested overseas. Acknowledging that those funds hadn’t been earned through illegal means, the Justice Minister said that the country suffered due to such valuable foreign exchange not being remitted. According to him, the USD 56.5 bn included approximately USD 3 bn that hadn’t been remitted last year as the country struggled amidst rapid deterioration of the national economy.

The Minister said that the actual figure could be definitely more than this.

Responding to another query raised by The Island, Dr. Rajapakshe said that the situation was so bad the government had to deal with the exporters cautiously as the country was not in a position to upset them under any circumstances. The Minister said that the Central Bank and the Finance Ministry were in the process of addressing this issue and efforts were being made to introduce a new Act.

Former External Affairs Minister Prof. G. L. Peiris on Monday (Oct 30) emphasized the urgent need to take remedial measures in this regard. The rebel SLPP MP said that this could be part of the overall government response to overcome the continuing financial crisis.

President Gotabaya Rajapaksa’s government also caused irrevocable setbacks by doing away with a range of taxes immediately after the last presidential poll on wrong advice. Declaring that the move deprived the Treasury of Rs 600-700 bn, Dr. Rajapakshe said that no one really knew the losses caused by sudden ban on agro chemicals. Perhaps the losses could be much more than the losses suffered due to the abolition of a slew of taxes.

Dr. Rajapakshe recalled punitive measures taken during the Sirimavo Bandaranaike’s administration to deal with foreign exchange frauds.

However, the deterioration of the national economy began in 2006 as the powers that be adopted corrupt and disastrous measures, Dr. Rajapakshe said, pointing out that the situation in the UPFA government compelled him to quit his ministerial portfolio.

Dr. Rajapakshe said that though some tend to question the importance of parliamentary watchdog committees, during his tenure as the Chairman of COPE the country benefited immensely as a result of action taken on COPE reports.

The former President of the Bar Association said that the Supreme Court had reversed the move to sell Lanka Marine Services (LMS) Ltd to John Keells and a controversial deal on Sri Lanka Ports Authority land. The Justice Minister mentioned several other cases, including the saving of the highly profitable Sri Lanka Insurance Corporation (SLIC) from privatization.



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Opposition blames govt. inaction for severity of disaster impact

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The government’s failure to act on expert warnings, including advance forecasts on Cyclone Ditwah, had led to the worsening of disaster impact, Udaya Gammanpila, leader of the Pivithuru Hela Urumaya, said at a press conference in Colombo yesterday.

Gammanpila accused the NPP government of ignoring 14 key preventive measures, despite alerts from the Meteorology Department, foreign experts, and the media.

Gammanpila said the government had failed to lower the water levels in reservoirs, dredge estuaries, and deploy the armed forces for canal maintenance. Local government bodies were reportedly sidelined, and that led to a delay in cleaning of drains. He said the government had also failed to evacuate people in a timely manner from seven districts identified by the National Building Research Organisation as landslide-prone. It had delayed declaring emergencies or curfews and the deployment of tri-forces to evacuate people in such areas.

Gammanpila said an experienced public official should have been appointed as Secretary to the President to mobilise the state machinery swiftly during the disaster. He said the government had not convened the National Disaster Council.

“These failures worsened the disaster, causing immense hardship, disruption, and loss of life and property to the people,” Gammanpila said.

The government has denied the Opposition’s claims.

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National Archives seeks freezing capacity to ward off mould from vital water-damaged documents

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The Department of National Archives Friday made an urgent appeal for freezing capacity to protect from mould vital water damaged documents, particularly irreplaceable public records of legal value saying this would be be time buying exercise before mould destroys them permanently.

Dr. Nadeera Rupesinghe, Director General of National Archives, said in the appeal that “freezing water-damaged documents stops mould growth and stabilizes materials until proper conservation treatment is possible. It buys time.

Without freezing capacity, we will lose vital records, land registries, court documents, historical records, and the evidence millions of citizens need to rebuild their lives.

“These public institutions urgently need access to freezer facilities and mobile freezers across the country. Public records as bound volumes, and bundled records have to be frozen in large quantities. We understand this is an extraordinary request during an already difficult time. We are asking you to provide space in existing freezer facilities on a temporary basis (weeks to months).”

She said if anybody able to provide such facilities without cost, in return, the National Archives can support full documentation of your contribution for CSR reporting and national recognition as a partner in preserving Sri Lanka’s evidentiary landscape.

“These are not abstract historical records. These are the records our citizens need to prove who they are, what they own, and what they are owed. What we stand to lose –

Court records and legal evidence spanning decades

Personnel files affecting pensions and benefits

Financial records required for audits and accountability

Public records essential for maintaining administrative history

Historical documents that tell our national story”

Noting that the business community has always been a partner in Sri Lanka’s development, the National Archives Department asked it to be partners in preserving the documentary foundation on which business, law, and civil society depend.

“Every land transaction, every contract, every court case relies on records. Help us save them,” Rupesinghe said.

If your organisation has freezing capacity you can make available, please immediately contact Mr Anuradha Adikaram, Senior Archivist on 077 6815551 (Available 24 hours) .

The department will coordinate connecting those who can assist with organisations that are searching for freezer facilities.

“Time is the enemy. Every hour without freezing capacity means more records lost to mould. Every day of delay means more families without proof of their homes, their citizenship, their rights. We are asking for freezers, but we are really asking you to help preserve the documentary infrastructure of our nation,” Rupesinghe said.

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Met Dept. issues fresh weather warning

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The Department of Meteorology has warned that rainfall is expected to increase across the country in the coming days as the southwest monsoon becomes more active. From Tuesday, monsoon conditions are expected to persist, with stronger winds likely.

Rainfall is predicted to intensify on Dec. 10, 11, and 12, potentially affecting the Northern, North-Central, Northwestern, Eastern, and Uva provinces, with thunderstorms and rainfall between 75 and 100 mm, Director General of Meteorology Athula Karunanayake said.

Karunanayake added that other areas, including the southeastern region, could also see rain during the day or night, as a disturbance in the Bay of Bengal may further influence the monsoon.

He cautioned that heavy rain would be accompanied by strong winds, creating rough sea conditions. Fishermen and maritime communities are urged to exercise caution and follow official advisories during this period.

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