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Banks cannot provide US dollars even at Rs.345

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by Sanath Nanayakkare

All licensed commercial banks in the country are still facing a huge crunch in foreign exchange inflow, although inward remittances can be converted to Sri Lanka rupees at a much higher rate since the Central Bank of Sri Lanka floated the Sri Lanka rupee.

This was revealed in a report released by the Lanka IOC.

It says that exporters are not coming forward for conversion of foreign currency, even at the rates higher than official ones.

Lanka IOC, a subsidiary of Indian Oil Corporation that operates retail petrol/diesel stations in Sri Lanka, says that the local currency has depreciated further and while the Central Bank’s TT selling rate is Rs.330 as of now, the licensed commercial banks are not able to provide US dollars even at the rate of Rs.345.

“Since the Central Bank floated the rupee on 7 March 2022, the local currency has been constantly devaluing against the dollar and currently hovering around Rs. 330 per US$, having shot up from the level of Rs. 203. This has made fuel import much costlier,” Lanka IOC notes.

The company says that rupee devaluation by more than 60% during the last one-month since 7th March 2022, compelled them to again increase its retail selling prices of gasoline by Rs 35/ltr and gasoil price by Rs 75/ltr.

“Even though international prices are stable since last one week amid the surge in COVID cases in China and preparation of the International Energy Agency for releases of oil reserves, the local currency depreciation is significantly increasing the cost of fuel imports”, Lanka IOC says.

LIOC Managing Director Manoj Gupta says, “Unstable currency rates and steep rupee depreciation has directly impacted the landed cost of gasoil and gasoline making them expensive by an equivalent amount per litre. Our current losses are exorbitantly high considering at current exchange rate and international prices leaving no other option but to increase the prices of gasoil and gasoline. In view of uncertainty in the global market coupled with Sri Lanka country risk, most of the suppliers are not participating in the tenders or quoting high premium for supply of gasoil and gasoline. Despite this price increase, there would still be heavy losses being suffered by the company. Lanka IOC has always remained committed towards the economic and social upliftment of Sri Lanka. We are very much disturbed and find it painful to pass on the impact of currency devaluation to our customers, but absolutely left with no option to ensure our sustenance and maintain an uninterrupted fuel supply.”

“We will review the selling prices on a periodic basis and would be more than happy to give some relief to our customers by reducing the prices as and when the situation improves and the currency appreciates and stabilises,” Gupta says.



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Financial contributions received for ‘Rebuilding Sri Lanka’ Fund

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The Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah, continues to receive financial contributions on a daily basis.

Accordingly, the Containers Transport Owners Association made a financial contribution of Rs. 1.5 million, while the Association of SriLankan Airlines Licensed Aircraft Engineers contributed Rs. 1.35 million to the Fund.

The respective cheques were formally presented to the Secretary to the President, Dr. Nandika Sanath Kumanayake, at the Presidential Secretariat on Friday (19).

The occasion was attended by  W. M. S. K. Manjula, Chairman of the Containers Transport Owners Association, together with  Dilip Nihal Anslem Perera and  Jayantha Karunadhipathi.

Representing the Association of SriLankan Airlines Licensed Aircraft Engineers were Deshan Rajapaksa,  Samudika Perera and  Devshan Rodrigo handed over the cheque.

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UNICEF representatives and PM discuss rebuilding schools affected by the Disaster

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A meeting between Prime Minister Dr. Harini Amarasuriya and a delegation of UNICEF representatives was held on Saturday,  (December 20) at the Prime Minister’s Office.

During the meeting, the Prime Minister explained the measures taken by the Government to ensure the protection of the affected student community and to restore the damaged school system, as well as the challenges encountered in this process.

The Prime Minister stated that reopening schools located in landslide-prone areas would be extremely dangerous. Accordingly, the Government is focusing on identifying such schools and relocating them to suitable locations based on scientific assessments.

The Prime Minister further noted that financial assistance has been provided to students affected by the disaster, enabling parents to send their children back to school without an additional financial burden. Emphasizing that school is the safest place for children after their homes, the Prime Minister expressed confidence that the school environment would help restore and improve students’ mental well-being

The Prime Minister also highlighted that attention has been given to several key areas, including the relocation of disaster-affected schools, restoration of school infrastructure, merging and operating certain schools jointly, facilitating teaching and learning through digital and technological strategies, and providing special transportation facilities. She emphasized that the Government is examining these issues and is committed to finding long-term solutions.

The UNICEF representatives commended the Government’s commitment and the initiatives undertaken to restore the education sector and assured their support to the Government. Both parties also discussed working together collaboratively on future initiatives.

The meeting was attended by the UNICEF representatives to Sri Lanka Emma Brigham, Lakshmi Sureshkumar, Nishantha Subash, and Yashinka Jayasinghe, along with Secretary to the Ministry of Education Nalaka Kaluwewa, Director of Education Dakshina Kasturiarachchi, Deputy Directors Kasun Gunarathne and Udara Dikkumbura.

(Prime Minister’s Media Division)

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NMRA laboratory lacks SLAB accreditation

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Dr. Sanjeewa

Drug controversy:

 “Setting up state-of-the-art drug testing facility will cost Rs 5 billion”

 Activists call for legal action against politicians, bureaucrats

Serious questions have been raised over Sri Lanka’s drug regulatory system following revelations that the National Medicines Regulatory Authority’s (NMRA) quality control laboratory is not accredited by the Sri Lanka Accreditation Board (SLAB), casting doubt on both the reliability of local test results and the adequacy of oversight of imported medicines.

Medical and civil rights groups warn that the issue points to a systemic regulatory failure rather than an isolated lapse, with potential political and financial consequences for the State.

Chairman of the Federation of Medical and Civil Rights Professional Associations, Specialist Dr. Chamal Sanjeewa, said the controversy surrounding the Ondansetron injection, which was later found to be contaminated, had exposed deep weaknesses in drug regulation and quality assurance.

Dr. Sanjeewa said that the manufacturer had confirmed that the drug had been imported into Sri Lanka on four occasions this year, despite later being temporarily withdrawn from use. The drug was manufactured in India in November 2024 and in May and August 2025, and imported to Sri Lanka in February, July and September. On each occasion, 67,600 phials were procured.

Dr. Sanjeewa said the company had informed the NMRA that the drug was tested in Indian laboratories, prior to shipment, and passed all required quality checks. The manufacturer reportedly tested the injections against 10 parameters, including basic quality standards,

pH value, visual appearance, component composition, quantity per phial, sterility levels, presence of other substances, bacterial toxin levels and spectral variations.

According to documents submitted to the NMRA, no bacterial toxins were detected in the original samples, and the reported toxin levels were within European safety limits of less than 9.9 international units per milligram.

Dr. Sanjeewa said the credibility of local regulatory oversight had come under scrutiny, noting that the NMRA’s quality control laboratory was not SLAB-accredited. He said establishing a fully equipped, internationally accredited laboratory would cost nearly Rs. 5 billion.

He warned that the failure to invest in such a facility could have grave consequences, including continued loss of life due to substandard medicines and the inability of the State to recover large sums of public funds paid to pharmaceutical companies for defective drugs.

“If urgent steps are not taken, public money will continue to be lost and accountability will remain elusive,” Dr. Sanjeewa said.

He added that if it was ultimately confirmed that the drug did not contain bacterial toxins at the time it entered Sri Lanka, the fallout would be even more damaging, severely undermining the credibility of the country’s health system and exposing weaknesses in health administration.

Dr. Sanjeewa said public trust in the health sector had already been eroded and called for legal action against all politicians and public officials responsible for regulatory failures linked to the incident.

by Chaminda Silva ✍️

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