News
Finance Committee: Monetary Board insulted Parliament; SBJ calls for action against ‘culprits’
By Shamindra Ferdinando
Amidst A deepening financial crisis that prompted President Gotabaya Rajapaksa to summon an All Party Conference (APC) on Wednesday (23) to discuss ways and means of addressing the issues at hand, the Monetary Board has skipped a meeting called by the Committee on Public Finance (CoPF) yesterday (24) to inquire into current developments.
The CoPF alleged that the meeting previously scheduled to be held last Monday (21) had been re-fixed for Thursday (24) on a request made by the Central Bank.
However, at the last moment, the Central Bank had informed the CoPF that the entire Monetary Board couldn’t attend the meeting as board member S. R. Attygalle, Secretary to the Ministry of Finance was to hold discussions with the World Bank.
The Monetary Board consists of Governor of the Central Bank Ajith Nivard Cabraal (ex-officio), Treasury Secretary S.R. Attygalle (ex-officio) , President’s Counsel Sanjeeva Jayawardena, Dr. Rani Jayamaha and Samantha Kumarasinghe.
CoPF Chairman Anura Priyadarshana Yapa , MP, has said that this should be brought to the notice of Speaker Mahinda Yapa Abeywardena. The Chairman has said so after several members of the watchdog committee alleged the Monetary Board insulted Parliament. The members present on the occasion included State Ministers, Indika Anuruddha and Kanchana Wijesekera and MPs, Vijitha Herath, Prof. Ranjith Bandara, Nalin Fernando, Dr. Harsha de Silva and Mujibur Rahuman.
The CoPF declared that the Monetary Board would be called again on April 01.
Recently, former Deputy Governor of the Central Bank Dr. W.A. Wijewardena in a brief interview with The Island asserted that the country wouldn’t have in the current predicament if the Central Bank floated the Rupee in April 2021 during the tenure of Prof W.D. Lakshman as the Governor of the Central Bank.
Dr. Harsha de Silva questioned the circumstances the Monetary Board skipped yesterday’s meet summoned by the CoPF. Lawmaker de Silva said that the Parliament was informed by fax at 10.45 am informing their inability to come. The former UNP State Minister said that as the financial crisis could only be dealt in Parliament there was no purpose in having conferences. The lawmaker was referring to the APC held at the Janadhipathi Mandiraya on Wednesday. Declaring that the President has no power to formulate law, MP de Silva said that the members of the Monetary Board disrespected Parliament. They do not have a right to do so. If they do not heed summons from Parliament what is the purpose in having a Parliament at all, the SJB MP said.
The SJB boycotted Wednesday’s APC chaired by President Rajapaksa. Declaring that the Parliament couldn’t allow this to happen, MP de Silva pointed out that Finance Minister Basil Rajapaksa, too, didn’t attend the Parliament. The FM missed parliament for three months, the MP said. A State Bank has defaulted today. The government should inquire into this. The MP lambasted that government policy that has endangered the entire banking system. The MP lambasted the Governor and top officials for the rapidly crisis. The former State Minister dismissed APC talks asserting that there was no purpose in the whole exercising.
The Monetary Board couldn’t be allowed to act contrary to the Constitution.
News
AKD warns of far reaching economic consequences of Middle East war
President Anura Kumara Dissanayake yesterday called for an immediate and peaceful resolution of the escalating Middle East conflict, warning that the crisis could have far-reaching repercussions on the global economy, including Sri Lanka.
Addressing Parliament, the President stressed that no military conflict benefited humanity, particularly at a time when destructive military technologies were rapidly advancing.
“Any military conflict does not create a favourable situation for any group of people,” he said, urging all parties to make urgent commitments towards peace. “As Sri Lanka, our position is that all parties involved in this war must, as soon as possible, take steps toward a peaceful world.”
He cautioned that Sri Lanka could not remain insulated from the fallout from the conflict, noting that disruptions to global oil and gas supplies, threats to migrant workers in the Middle East, and potential shocks to tourism, remittances, shipping and aviation were real concerns.
A national programme was being formulated to mitigate the impact, he said, adding that its success would hinge on broader international efforts to restore stability, the President said.
Acknowledging public anxiety shaped by past economic hardships, President Dissanayake said social stability could not be ensured through rhetoric alone but required tangible guarantees that citizens would not face another crisis.
While noting that the government had successfully navigated multiple challenges since assuming office, he described the Middle East situation as distinct due to the uncertainty surrounding its duration and outcome.
The government, he said, was closely monitoring developments. The Central Bank had conducted a review with a report on the likely economic impact expected shortly. The Ministry of Finance is also preparing an assessment of the potential effects on public life, alongside measures to ensure the uninterrupted provision of essential services locally and for Sri Lankans overseas.
“The primary responsibility for finding a path out of the crisis rests with the Government,” he said, calling on Parliament and the public to collectively confront the challenge under a unified national plan.
Providing a detailed account of the country’s energy reserves, the President said storage capacity rather than supply remained the key constraint. Excluding the Indian Oil Corporation tanks in Trincomalee, total storage capacity at Kolonnawa and Muthurajawela stands at approximately 150,000 metric tons.
Diesel stocks were currently sufficient for 33 days, with refining contributing around 1,800 metric tons daily. Petrol reserves will last 27 days, with a 35,000 metric ton shipment due on March 7 or 8 expected to extend availability to around 40 days.
Aviation fuel stocks are adequate for 49 days, supported by both daily refining and imports. Scheduled shipments include vessels from RM Parks on March 14, Sinopec on March 17, IOC on March 21 and the Ceylon Petroleum Corporation on March 28.
Crude oil supplies were sufficient to operate the refinery for 26 days, with an additional shipment expected to extend operations by a further 18 days, the President said.
“Because of this, there is no crisis regarding oil,” the President assured Parliament.
News
Pope invited to visit Sri Lanka
President Anura Kumara Dissanayake has invited His Holiness Pope Leo XIV to visit Sri Lanka.
The official invitation was handed over by Minister Bimal Ratnayaka to the Vatican’s Under Secretary for Relations with the States, at the Vatican, yesterday, during the Minister’s official visit to Italy, the President’s Media Division said.
News
New Tourism Act to strengthen legal action against visa violators
The government is in the process of drafting a new Tourism Act to address legal loopholes that currently prevent the prosecution of foreign nationals who engage in unauthorised activities while on tourist visas. Speaking at a certificate awarding ceremony for the Vocational Initiative for Sustainable Ambassadors in Tourism (VISA) project at the Royal Kandyan Hotel, Suranjith Wavita, a member of the Presidential Task Force for Tourism Development, stated that the current Tourism Act No. 38 of 2005 was flawed as it does not prescribe specific punishments, beyond deportation, for such offenders.
Wavita highlighted that a significant number of foreigners, including Chinese nationals, had been deported over the past three months for working as illegal tour guides and engaging in various trading activities. He explained that due to a shortage of Chinese-speaking local guides, travel agents often brought in “Tour Leaders” from abroad on tourist visas, which was a serious violation. The proposed new legislation aimed to empower the Tourist Police Division to arrest and produce such violators, ensuring stricter enforcement than mere deportation.
The new Act is being formulated by a committee of experts, based on various proposals and ideas to make it mandatory for anyone involved in the tourism industry to be registered and properly trained. To facilitate this, the government has already lowered the basic qualifications required for registration, allowing more locals to enter the profession legally and prevent the negative impact of unauthorised operators on the industry’s future.
Discussing the industry’s growth, Wavita noted that Sri Lanka was now aiming for an annual target of three million foreign tourists. He specifically mentioned the success of the 311-km “Pekoe Trail” in the central highlands, which attracts around 500 tourists daily and helps channel tourism income into plantation-based communities.
He also emphasised the importance of environmental protection, noting that since 25% of Sri Lanka’s flora is endemic, some foreigners enter the country with the intention of “biopiracy,” making the role of trained local guides crucial in safeguarding natural resources.
The VISA training project was implemented by the National Cleaner Production Centre (NCPC) and ASSIST, with the support of VFS Global. The event saw the participation of high-ranking officials, including Manpreet Singh Aurora (Senior General Manager, VFS Global), H.C.P. Jayaweera (Director General of National Botanical Gardens), and Samantha Kumarasena (CEO, NCPC).
Wavita concluded by praising the increasing participation of women in the tourism sector, describing it as a vital contribution to both the industry’s progress and the national economy.
By S.K. Samaranayake
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