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CBSL urged to extend mandatory conversion period of advance payments related to exports

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By Sanath Nanayakkare

Small and medium exporters want the Central Bank (CBSL) to give them greater leeway on converting advance payments, they receive from their foreign clients, for confirmed export orders, into rupees.

“Under the existing export repatriation guidelines, we are required to convert such advance payments, into Sri Lanka rupees, within a time frame that does not take into consideration the processing time of export orders. When we receive USD advance payments for export orders, the banks, we deal with, say that they can’t hold USD funds, received as advance payments for export orders, beyond one month, without converting it into Sri Lanka rupees. Banks say they can’t do so because of CBSL’s exports repatriation guidelines. But this rule has hardly taken into account the processing time of our export orders and the credit periods available to us,” SME exporters told The Island.

“We generally get advance payments from our foreign buyers in terms of confirmed export orders, such as value-added products, which we ship to them in 30-45 days. The USD advance payments are credited to our companies’ accounts at the relevant banks. But the rules require us to convert the foreign currency, into Sri Lanka rupees, within a month, hence we cannot benefit from the transactional facilities offered to us by our freight forwarders and foreign intermediate goods suppliers,” they pointed out.

“You see, our freight cost is billed in USD after, 45 days from the date of the bill of lading. Our imported intermediate inputs are billed in USD, within a 30-day credit period. But the banks, we deal with, convert the USD advance payments, into Sri Lanka rupees, before we can settle these bills, under the rules stipulated by the CBSL. This means that the advance payments are converted into Sri Lanka rupees, before the export orders are shipped, and total export proceeds are remitted to Sri Lanka,” they said.

According to them, the Director, Department of Foreign Exchange, at CBSL, has informed them that advance payments, received in respect of exports, are also considered export proceeds and the requirements stipulated, in existing rules, shall be applicable for such export proceeds.

‘In this context, we seek the assistance of the CBSL to allow the above-mentioned requisite payments to be paid on due dates, after the advance is received. We request the CBSL to give a directive to the banks to hold these funds, without converting them, because it is vital for us to benefit from the available transactional facilities to keep our SME export businesses viable in the long term. The Central Bank and the commercial banks are on the same page as per the rules, but SME exporters are left at a disadvantage due to this. So we urge the CBSL to extend the time frame on the mandatory conversion of advance payments received in USD for SME export orders,” they said.



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70,297 persons still in safety centers

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The Situation Report issued by the Disaster Management Center at 06:00AM on 16th December 2025 shows that 70,297 persons belonging to 22,338 house holds are still being housed at 731 safety centers established by the government.

The number of deaths due to the recent disastrous weather  stands at 643 while 183 persons are missing.

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MEPA to crack down on marine polluters

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… Warns would-be polluters of criminal prosecution, hefty fines and even blacklisting

The Marine Environment Protection Authority (MEPA) has warned that ship owners, operators and local entities responsible for marine pollution will face criminal prosecution, heavy financial penalties and possible blacklisting, MEPA Chairman Samantha Gunasekera said yesterday.

Gunasekera told The Island that Sri Lanka would no longer tolerate negligence and regulatory breaches that threaten the country’s marine ecosystems, coastal livelihoods and national economy.

“Any party that pollutes our seas—whether foreign vessels or local operators—should be prepared to face the full force of the law,” Gunasekera said. “There will be no room for excuses, delays or backdoor negotiations when marine pollution is involved.”

He said MEPA has intensified surveillance of major shipping routes, ports and environmentally sensitive zones amid rising maritime traffic through Sri Lankan waters, which remain among the busiest in the Indian Ocean.

by Ifham Nizam

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SC delegation, headed by CJ Surasena, observes Indian Supreme Court in action

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A 10-member delegation from Sri Lanka’s Supreme Court, headed by Chief Justice P. Padman Surasena, with Indian judicial officials

A 10-member delegation from Sri Lanka’s Supreme Court, headed by Chief Justice P. Padman Surasena, departed to New Delhi on the 11th of December, 2025, for an official visit to the Supreme Court of India as part of the ongoing official visit by the delegation to India.

The group was accorded a ceremonial welcome in the Court’s main hall, led by the Chief Justice of India (CJI) Surya Kant. CJI Kant told the assembled Judges that “the Indian judiciary was honoured to host” their Sri Lankan counterparts, expressing hope that the visit would be “meaningful and very constructive” and underscoring the “close emotional bonds” between the two countries.

The focal point of the programme was a special sitting of the Supreme Court. Chief Justice Surasena joined CJI Kant and Justice Joymalya Bagchi on the bench, presiding over the Court as a guest Justice. He was accompanied by nine other Supreme Court justices from Sri Lanka, who took seats in the well of CJI Kant’s courtroom to observe the day’s proceedings.

Supreme Court Bar Association President Vikas Singh formally greeted the delegation and praised Justice Surasena’s reformist efforts. Singh recalled the Sri Lankan Chief Justice’s own maxim, “If you want something you have never had, then you have got to do something you have never done”, highlighting the bold changes Surasena had introduced to modernise Sri Lanka’s Court system. Singh noted that these initiatives, particularly court digitization, were aimed at eradicating “the persisting problems of law delays” and streamlining case backlogs.

The Sri Lankan Judges spent the morning observing live Supreme Court proceedings in CJI Kant’s courtroom. This first-hand exposure to Indian court operations formed a key part of the programme’s judicial engagement. During the hour-long session, the visiting justices witnessed a range of cases on the Supreme Court’s roster, with Justice Surasena and the delegation following arguments from the front. The experience was designed to be immersive and following the hearing the Sri Lankan Judges were briefed on India’s own initiatives towards a digitalised court system, e-filing and case management systems.

The official programme then shifted to capacity-building and information exchange. In the early afternoon, Indian Supreme Court officials gave the Sri Lankan delegation detailed briefings on India’s technological initiatives. Court registrars demonstrated the e-filing system and other e-initiatives implemented by the Supreme Court of India. Additional presentations outlined the Court’s new case management systems and administrative reforms. These sessions highlighted how digital tools and better case-listing procedures have been used in India to increase efficiency. The Sri Lankan judges asked questions about India’s experience with electronic court records and the integration of technology in daily judicial work, reflecting their own interest in similar reforms back home.

The visit underscored the growing collaboration between the Indian and Sri Lankan judiciaries. Throughout the proceedings, both sides emphasised their shared legal traditions and mutual respect. As Chief Justice Surasena noted during the sitting, India is Sri Lanka’s “closest neighbour,” and historic links, even dating back to ancient epics, form the backdrop for today’s judicial dialogue. CJI Kant remarked that having the chief justices of two vibrant democracies together on the bench was a “significant moment” for the rule of law.

The Sri Lankan delegation continued its programme in Delhi on 12 December with a visit to the Delhi High Court and its International Arbitration and Mediation Centres. The exchange visit is expected to deepen judicial cooperation and provide practical insights for both courts. Officials on both sides say the engagement aimed at sharing best practices in court administration, reinforce legal ties and support ongoing reforms aimed at reducing case backlogs and delays.

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