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FSP traces current forex crisis to PM doing away with Exchange Control Act under yahapalana rule

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By Saman Indrajiith

The Frontline Socialist Party, on Tuesday, said that amending of laws in favour of forex racketeers by the Yahapalana government in 2017 was one of the main causes of the prevailing forex shortage crisis.

Addressing the media at the party head office in Nugegoda, FSP Education Secretary, Pubudu Jagoda, said that the then Prime Minister Wickremesinghe had got the Exchange Control Act amended. “Since 1953, we have had the Exchange Control Act which prevented questionable outflows of forex. Wickremesinghe brought in a new law under the name Foreign Exchange Act, in 2017, replacing the former legislation. He said the reason for doing away with the Exchange Control Act of 1953 was to liberalise the foreign exchange flow. However, the new law proved detrimental to this country’s interests. Around 30 forex fraudsters were released from the cases against them. The new law has led to the present foreign exchange crisis.

“As per the previous legislation, exporters required to bring home an equivalent, or more, of foreign exchange of the worth of their exports via the banking system. The violation of the law was a criminal offence. The offences, under the former legislation, were non bailable offences. As per the provisions of the Exchange Control Act, the property of the offender was to be confiscated. At the time the new law was introduced, there were around 30 cases pending before our courts against alleged violators of the former Act. Among those were close associates of Wickremesinghe and some members of the Rajapaksa family.

“It is usual when a new Act is introduced, replacing the former Act, mention has to be made with regard to the procedure to be adapted for the cases pending before the courts for offences committed under the previous Act. The new Foreign Exchange Act, introduced by Wickremesinghe, converted the criminal offence into a civil offence. It relegated the forex offences under the new act to the jurisdiction to Magistrates’ Courts from High Courts and also provided for bail to be granted by a Magistrate. With regard to the mandatory confiscation of property and earnings of forex crimes, the new Act placed it under the discretion of the judge. As per the provisions of the new Act, those pending cases came to an end. The provisions of the new Act called for a fresh filing of the cases within a period of three months. There were no cases filed for the same offences and all those who had been charged under the former Act were allowed to get away.

The new Act, which came into force in 2017, was favourable to forex racketeers and enabled many unscrupulous exports to park their dollars overseas, contributing to the present crisis.



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Landslide early warnings issued to the Districts of Badulla, Kandy, Kurunegala, Matale and Nuwara Eliya extended

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The landslide early warning center of the National Building Research Organisation [NBRO] has extended the landslide early warnings issued to the Districts of Badulla, Kandy, Kurunegala, Matale and Nuwara Eliya until 08:00 AM on Saturday [20th].

LEVEL III RED landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Minipe, Ududumbara, Doluwa and Medadumbara in the Kandy district, and Mathurata, Walapane, Hanguranketha and Nildandahinna in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Badulla, Lunugala, Passara and Hali_Ela in the Badulla district, Akurana, Pathadumbara, Udunuwara, Gangawata Korale, Pasbage Korale, Harispattuwa, Thumpane, Panvila, Ganga Ihala Korale, Udapalatha, Yatinuwara, Poojapitiya, Kundasale, Deltota, Pathahewaheta and Hatharaliyadda in the Kandy district, Rideegama in the Kurunegala district, Laggala Pallegama, Wilgamuwa, Yatawatta, Ambanganga Korale, Naula, Rattota, Pallepola, Ukuwela and Matale in the Matale district, and Nuwara Eliya in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Bandarawela, Uva Paranagama, Haldummulla, Kandeketiya, Soranathota, Ella, Welimada, Haputhale and Meegahakivula in the Badulla district, Alawwa, Polgahawela, Mallawapitiya and Mawathagama in the Kurunegala district, and Thalawakele, Norwood, Ambagamuwa Korale, Kothmale West and Kothmale East in the Nuwara Eliya district.

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Financial contribution from Gift Sri Lanka Foundation and the Georgia Buddhist Vihara, USA, for disaster relief

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In support of relief efforts for communities affected by the Ditwah cyclone, Gift Sri Lanka Foundation and the Georgia Buddhist Vihara (GBV), USA, have made a financial contribution of USD 16,000 to the Government’s ‘Rebuilding Sri Lanka’ Fund.

The relevant cheque was formally handed over on Thursday  (18) afternoon at the Presidential Secretariat by the Chief Incumbent of the Georgia Buddhist Vihara, Most Venerable Panamwela Vajirabuddha Nayaka Thero, to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

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European Union provides over Euro 2.35 million Humanitarian Assistance to Sri Lanka

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The European Union has allocated a total of Euro 2.35 million of financial assistance to Sri Lanka. This includes Euro 500,000 through IFRC and Euro 1.85 million through DG-European Civil Protection and Humanitarian Aid Operations (ECHO) partners, WFP and UNICEF as humanitarian assistance to Sri Lanka, in response to the impact of Tropical Cyclone Ditwah,

In addition to the above allocation, the Union Civil Protection Mechanism (UCPM), which brings together 37 participating States, all 27 EU member States, as well as Albania, Bosnia and Herzegovina, Iceland, Moldova, Montenegro, North Macedonia, Norway, Serbia, Türkiye and Ukraine, is providing in-kind assistance to Sri Lanka.

As a part of the UCPM in kind assistance being provided, on Wednesday, 17th December, Sri Lanka received an aid shipment, with two air cargo flights arriving in Colombo from Germany, France and Luxembourg. This aid shipment included 83 tonnes of relief items such as family tents, mattresses, hygiene and kitchen kits, beds and water filters. The supplies are intended for distribution among communities most affected by the cyclone.

The arrival of the assistance was welcomed by the EU Ambassador to Sri Lanka, Carmen Moreno, French Ambassador, Rémi Lambert, and the Deputy Head of Mission at the German Embassy, Sarah Hasselbarth. On behalf of the Government of Sri Lanka, the donations were received by Sugeeshwara Gunaratna, Director General / Europe & North America, Ministry of Foreign Affairs, Foreign Employment & Tourism and Chathura Liyanarachchi, Director, Disaster Management Center (DMC).

Italy has also provided a team of structural engineers to support Sri Lanka’s disaster assessment and recovery process.

Furthermore, the EU has activated its Copernicus Emergency Management Service (EMS) in rapid mapping mode, with around 30 maps produced so far.

The European Union has committed continued cooperation and support to Sri Lanka’s disaster recovery and rebuilding process, reaffirming the enduring friendship and strong partnership between Sri Lanka and the European Union.

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