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CA to take up BASL petition against CB decision to convert dollar earnings into rupees 

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By A.J.A. Abeynayake

The Court of Appeal yesterday decided to consider on 20 Jan. a petition filed by the Bar Association of Sri Lanka (BASL) seeking the issuance of a writ order nullifying the Extraordinary Gazette Notification issued by the Governor of the Central Bank of Sri Lanka mandating the conversion of foreign currency received through bank accounts into Sri Lankan rupees.

The petition filed by President of the Bar Association of Sri Lanka, Saliya Peiris PC, and Anura Maddegoda PC, Deputy President of the Association, was taken up yesterday before a bench comprising Justices Sobhitha Rajapakaruna and Dhammika Ganepola.

The Governor of the Central Bank Ajith Nivard Cabraal, the Monetary Board of the Central Bank of Sri Lanka, the Minister of Finance Basil Rajapaksa and the Attorney General have been named as respondents.

Attorney-at-Law Ruwantha Cooray appearing for the Central Bank Governor and the Monetary Board of the Central Bank asked for time to obtain further instructions from his clients on matters contained in the petition.

K. Kanag-Iswaran PC appearing for the petitioners opposed to delaying the process on the grounds that the petitions had been filed on an issue of national importance.

Lawyers Nigel Bertholameuz, Lakshman Jayakumar, Niranjan Arulparagasam, Shivan Kanag Iswaran and Senior Lawyer K Kanag Iswaran PC appeared for the petitioner BASL on instructions of Attorney-at-Law G.G. Arulpragasam.

The petition filed by Attorney-at-Law G.G. Arulpragasam states that the petitioners’ Association is an organisation that deals with the rights of lawyers, human rights and the rule of law.

Attorneys who are members of the Petitioners’ Association have so far received fees from their clients in foreign currency, both inside and outside Sri Lanka. For this, they had the ability to receive foreign currency directly from both the personal resident foreign currency account and the foreign deposit account, as well as through commercial bank accounts.

So far, there has been no need to convert the foreign currency into rupees. The members of the Petitioners’ Association have done a great service to the country so far, earning a large amount of foreign exchange.

Foreign currency earned by importers or international traders as well as members of the BASL can be withdrawn directly from Sri Lankan accounts.

Despite this situation, on 28 October, the Governor of the Central Bank issued an Extraordinary Gazette Notification 2251/42 – “Repatriation of Export Proceeds into Sri Lanka Rules No. 5 of 2021” under the Section 10.1 of the Finance Act.

This gazette notification made it mandatory to convert foreign currency received into the country through bank accounts into Sri Lankan rupees.

It is unlawful to order the foreign currency to be converted into Sri Lankan rupees without the consent of the members of their association. It is also against Article 140 of the Constitution.

This is also against the principle of natural justice.

Further, the Governor of the Central Bank and the Monetary Board have taken steps to issue this gazette notification in violation of the provisions of the Foreign Exchange Act. This is a law of the jungle.

Therefore, the BASL has requested the court to issue notice to the respondents, issue a writ order nullifying the relevant gazette notification and an interim order restraining the execution of the relevant gazette notification.



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Second lot of luxury and decommissioned vehicles owned by the Presidential Secretariat sold

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The second phase of the auction to sell luxury and decommissioned vehicles owned by the Presidential Secretariat was successfully concluded today (15 May), with the auction taking place as scheduled.

A total of 26 vehicles, previously allocated to former Ministers and the former President, to their advisors and staff appointed under Article 41(1) of the Constitution during their tenure, were listed for sale. Out of these, 17 vehicles were successfully sold today.

The auctioned vehicles included:

1 BMW car
2 Ford Everest SUVs
1 Hyundai Terracan SUV
2 Land Rover SUVs
1 Mitsubishi Montero
3 Nissan Patrol vehicles
2 Nissan brand cars
1 Porsche Cayenne
5 SsangYong Rexton SUVs
1 Toyota Land Cruiser Sahara
6 V8 vehicles
1 Mitsubishi Rosa air-conditioned bus

With the aim of reducing government expenditure and promoting fiscal responsibility, a decision was taken to auction the vehicles belonging to the Presidential Secretariat.

There was a high demand for the purchase of these vehicles and over Rs. 200 million in revenue was generated through their sale at the auction held today.

There was significant interest in the auction, with 108 bidders participating.

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President approves establishment of Anti-Corruption Investigation Units in Provincial Councils and LG Institutions

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President Anura Kumara Disanayake has approved the establishment of dedicated anti-corruption investigation units within provincial councils and local government institutions, aiming to combat corruption and administrative inefficiencies. The decision follows a request by provincial governors during a high-level discussion held at the Presidential Secretariat today (15).

During the meeting, President Disanayake emphasised that provincial governors bear the primary responsibility for driving development initiatives and ensuring accountability within their respective provinces. He noted, “Strengthening governance mechanisms is critical to addressing systemic challenges and achieving equitable progress.”

Among the key decisions taken was the creation of anti-corruption investigation units modelled after similar bodies operating at the ministerial level. These units will be tasked with monitoring financial transactions, investigating irregularities and enforcing transparency in development projects. The initiative aligns with the government’s broader agenda to eliminate malpractice in public institutions.

The discussion also highlighted that provincial councils have received three times the financial allocations compared to the previous fiscal year. However, governors raised concerns regarding delays and bureaucratic hurdles in utilising these funds effectively. In response, President Disanayake directed officials to streamline procedures and adopt results-oriented mechanisms to accelerate infrastructure development.

Persistent obstacles in upgrading provincial infrastructure such as road networks, healthcare facilities and utility services, were also discussed. The President pledged to implement practical solutions to address these challenges and urged governors to prioritise projects that deliver tangible benefits to citizens.
The Governors further stressed the need for improved coordination between provincial councils and central ministries to avoid duplication of efforts. Acknowledging these concerns, President Disanayake underlined the importance of collaborative governance to ensure efficient resource allocation.

“While increased funding is a positive step, its prudent management is non-negotiable. Provincial authorities must ensure every rupee is accounted for and spent efficiently,” he asserted.

The meeting was attended by several senior officials, including Dr. Nandika Sanath Kumanayake, Secretary to the President, Kapila Janaka Bandara, Senior Additional Secretary to the President, Provincial Governors: Hanif Yusuf (Western Province), Sarath Bandara Samarasinghe Abayakon (Central Province), Bandula Harischandra (Southern Province), Tissa Kumarasiri Warnasuriya (North Western Province), Wasantha Kumara Wimalasiri (North Central Province), Nagalingam Vedanayagam (Northern Province), Prof. Jayantha Lal Ratnasekera (Eastern Province), Champa Janaki Rajaratne (Sabaragamuwa Province) and Kapila Jayasekara (Uva Province).

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Seven new envoys to Sri Lanka present credentials to the President

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Seven newly appointed foreign ambassadors to Sri Lanka presented their credentials to President Anura Kumara Disanayake today (15) at the Presidential Secretariat.

The new ambassadors represent the State of Israel, the Argentine Republic, the Republic of Zimbabwe, the Republic of the Philippines, the Republic of Tajikistan, the Kingdom of Cambodia, and the Kingdom of Denmark.

Accordingly:

*  Mr. Mariano Agustin Caucino has been appointed as the Ambassador-designate of the Argentine Republic, based in New Delhi.
*  Ms. Stella Nkomo has been appointed as the Ambassador-designate of the Republic of Zimbabwe, based in New Delhi.
*  Mr. Reuven Javier Azar has been appointed as the Ambassador-designate of the State of Israel, based in New Delhi.
* Ms. Nina P. Cringlet has been appointed as the Ambassador-designate of the Republic of the Philippines, based in Dhaka.
*  Mr. Lukmon Bobokalonzoda has been appointed as the Ambassador-designate of the Republic of Tajikistan, based in New Delhi.
* Ms. Rath Many has been appointed as the Ambassador-designate of the Kingdom of Cambodia, based in New Delhi.
*  Mr. Rasmus Kristensen has been appointed as the Ambassador-designate of the Kingdom of Denmark, based in New Delhi.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with the Secretary to the President, Dr. Nandika Sanath Kumanayake, were also present at the occasion.

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