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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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Plans to open underutilised state land for new investment opportunities

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A discussion between President Anura Kumara Dissanayake and the Circular Revision Committee appointed to review and update circulars issued under the State Lands Ordinance and the Land Development Ordinance was held on Tuesday  (16)  afternoon at the Presidential Secretariat. The Committee has been mandated to recommend to the Cabinet the cancellation of out-dated circulars, the issuance of new circulars, and the revision of existing circulars to ensure alignment with current requirements.

The Committee is chaired by the Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation, D.P. Wickramasinghe. Its other members include the Senior Additional Secretary to the President (Constitutional and Statutory Affairs Division), Legal Adviser to the Presidential Secretariat, an Additional Solicitor General from the Attorney General’s Department, the Additional Secretary (Lands) of the Ministry of Agriculture, Livestock, Lands and Irrigation, the Additional Director General of the National Budget Department, the Western Province Land Commissioner, the Divisional Secretary of Nuwaragampalatha East, the Deputy Chief Valuer of the Valuation Department and the Director (Lands) of the Mahaweli Authority.

The Commissioner General of Lands serves as the Convener of the Committee.

The Committee’s responsibilities include establishing a reliable, uniform and regularised system of land taxation within the existing legal framework, ensuring state revenue optimisation without prejudice to lessees. This includes reviewing annual lease rentals charged on long-term leases and grants, aligning related circulars with current requirements, and amending or formulating new provisions and directives where necessary.

During the meeting, detailed discussions were held on the proposals submitted by the expert committee in relation to the revision of these circulars.

The President emphasised that a new, time-appropriate policy should be formulated to address the underutilisation of State lands and to ensure their more efficient use.

Deputy Minister of Lands and Irrigation Aravinda Senarath, Secretary to the President Dr. Nandika Sanath Kumanayake, Legal Adviser to the President, Senior Attorney-at-Law J.M. Wijebandara, Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation D.P. Wickramasinghe, Additional Solicitor General of the Attorney General’s Department, President’s Counsel Ravindra Pathiranage, Commissioner General of Lands Chandana Ranaweraarachchi, Director General (Institutional Affairs), Ministry of Finance, Planning and Economic Development J.G.L.S. Jayawardena, Additional Director General (National Budget Department) D.A. Asantha Gunasekara, and Commissioner of Lands (Leasing Division) P.K.C. Nilani Mahindaganamage, together with members of the Committee, were also present.

Senior officials from the Ministry of Finance and the Ministry of Agriculture, Livestock, Lands and Irrigation also attended the meeting.

(PMD)

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National Export Development Plan (2026–2030) presented to the President

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Marking an important milestone in Sri Lanka’s economic development, the National Export Development Plan (NEDP) for the period 2026–2030 was presented to President Anura Kumara Dissanayake on Tuesday morning (16) at the Presidential Secretariat.

The 2026–2030 National Export Development Plan (NEDP) is a key national programme formulated in line with the Government’s policy direction under the 2025 Budget. It aims to strengthen the country’s export sector and achieve export-led sustainable economic growth.

The strategic plan has been developed under the guidance of the Ministry of Industry and Entrepreneurship Development and the leadership of the Sri Lanka Export Development Board (EDB), with technical assistance provided through the Asian Development Bank’s (ADB) Policy-Based Lending (PBL) programme. It is the result of an extensive consultative process carried out in close collaboration with key government institutions, private sector stakeholders, and development partners.

The proposal submitted by the Minister of Industry and Entrepreneurship Development to recognise the “Sri Lanka National Export Development Plan 2026–2030” as the official strategic framework for export development and promotion in Sri Lanka was approved by the Cabinet of Ministers on 4 May 2026. The Plan reflects a broad consensus among government institutions, private sector experts, and international development partners.

In line with the national vision of “A Thriving Nation – A Beautiful Life”, the Plan has been formulated to enhance Sri Lanka’s export competitiveness and achieve an export revenue target of USD 36 billion by 2030.

The core vision of the Plan is to transform Sri Lanka into a competitive logistics and knowledge-based export hub serving regional and global markets. The strategy is based on two key interconnected pillars: “horizontals” and “verticals”, which together provide the foundation for strengthening export competitiveness, diversification, and sustainable growth.

The horizontal enablers, which support the growth and expansion of all priority sectors, include logistics and integrated hub operations, trade facilitation, trade finance and reforms in the business and investment environment, trade promotion and market linkages, quality management, standards, environmental, social and governance (ESG) capacity development, as well as entrepreneurship and innovation.

The Plan also identifies eight priority export sectors to enhance export diversification and value addition, and to position Sri Lanka more competitively in global markets. These include automotive components, mineral-based industries, rubber-based industries, maritime industries (including boat and shipbuilding), spices and concentrates, digital products and services, electrical and electronic equipment, and processed food and beverages.

The preparation of the Plan involved contributions from over 300 stakeholders, including government institutions, the private sector, civil society organisations and international development partners. Broad consensus was achieved through consultations held from October to December 2025 and workshops conducted in January 2026.

The Government expects that, with implementation supported by strong governance and monitoring framework, the Plan will elevate local products to international standards and ensure long-term economic stability and growth. It is further anticipated that the National Export Development Plan will serve as a key driver of Sri Lanka’s economic progress in the years ahead.

Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the Ministry of Energy Russell Aponso, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe were also present at the event.

[PMD]

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Complaint of custodial deaths and torture submitted to UN

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Senaka and Aisha

The Committee for Protecting Rights of Prisoners (CPRP) has complained to the UN regarding custodial deaths.

Executive Director of the Committee, Attorney-at-Law Senaka Perera told The Island that they had submitted written submissions to the visiting UN Subcommittee on Prevention of Torture (SPT) on Monday (15). “We are confident that they’ll take up the issues at hand with the government and take tangible measures to improve the conditions in prisons and detention facilities,” Perera said.

The SPT is here from 15 to 24 June. The visiting delegation consists of Aisha Shujune Muhammad, Head of Delegation (Maldives), Jakub Julian Czepek (Poland), Nika Kvaratskhelia (Georgia), Anica Tomsic (Croatia) and two human rights officers from the Office of the High Commissioner for Human Rights.

Claiming that there had been 184 prison deaths in 2024, the Committee asserted that though there was a drop in the number of cases, the deaths caused by underlying health complications and systemic issues weren’t available at the moment.

According to a copy of the submissions made to the SPT, received by The Island, there had been seven custodial deaths this year alone, reported from various parts of the country.

The Committee took a very critical position, while Foreign Minister Vijitha Herath assured the visiting delegation that the government didn’t tolerate torture at all.

The Ministry statement Monday night quoted Herath as having described the government response as zero tolerance policy.

The Committee for Protecting Rights of Prisoners also dealt with several other contentious issues, including special treatment granted to those with political connections and privileged backgrounds. Perera alleged that in spite of a change of government, in 2024 September, the much anticipated improvements failed to materialise and the continuing custodial deaths highlighted the crisis in the prisons and detention facilities.

According to the Committee, the situation was so bad and further deteriorating in overcrowded prisons, the national overcrowding rate has reached an unsustainable 286.6%, with some facilities, like the Vavuniya Remand Prison, exceeding capacity by 300%.

A significant portion of this population (65.4%) consists of persons not convicted awaiting trial, the Committee said, urging the SPT to look into the pathetic situation.

The Committee also complained of torture and ill-treatment at some detention facilities. There had been cases of lawyers, visiting detention centres at Welisara and Boossa, been subjected to degrading and humiliating searches, including forced removal of clothing.

The Committee also brought to the SPT’s notice how the Supreme Court, on 14 December, 2023, held the former Inspector General of Police (IGP), Deshabandu Thennakoon, personally responsible for torture. The failure on the part of prison authorities to grant inmates a fair hearing during internal investigations, too, has been raised by the Committee.

Among the other issues that had been raised were enforced disappearances, health and medical conditions, food, water and sanitation, corporal punishments and the operation of detention facilities within military bases.

Referring to the enforced disappearance of Gonapinuwala Kapila Kumara de Silva on 27 March, 2024, the Committee alleged that the Attorney General failed to take action against the perpetrators, believed to be members of the Special Task Force (STF)

The Committee alleged that in spite of them submitting formal complaints and an urgent letter to the Attorney General demanding prosecution under the International Convention for the Protection of All Persons from Enforced Disappearances Act, No. 5 of 2018, the AG took no meaningful action.

Consequently, CPRP filed a Writ of Mandamus petition in the Court of Appeal (CA/WRIT/185/26) against the Attorney General and other officials, seeking judicial intervention to compel investigation and prosecution. The case remains pending

by Shamindra Ferdinando

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