News
FSP traces current forex crisis to PM doing away with Exchange Control Act under yahapalana rule
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.
The government, under heavy Opposition fire over inclusion of a sex website in the Grade 6 English module, as well as overall education reforms, has decided to put on hold reforms in respect of Grade 6.
Cabinet Spokesman and Media and Health Minister Dr. Nalinda Jayatissa announced the government decision yesterday (13) at the post-Cabinet media briefing at the Information Department.
According to him, the decision had been taken at the previous day’s Cabinet meeting, chaired by President Anura Kumara Dissanayake. Dr. Jayatissa said that education reforms pertaining to Garde 6 had been put on hold until 2027.
The Minister said that other proposed education reforms would be implemented as planned. The Minister said that action would be taken against those responsible for the inclusion of a link to a sex website following investigations conducted by the Criminal Investigation Department and the National Education Institute.
The SJB and several other political parties, as well as civil society groups, have accused the government of promoting an LGBTQ agenda, through the proposed education reforms.
The Opposition grouping Mahajana Handa, on Monday, made representations to the Mahanayake Thera of the Malwatta Chapter regarding the controversial reforms, while urging their intervention to halt the project.
President Anura Kumara Dissanayake yesterday (13) vowed to go ahead with his government’s agenda, regardless of the destruction caused by Cyclone Ditwah.
Emphasising the responsibility on the part of all to contribute to the post-Ditwah recovery efforts, President Dissanayake said that he would have complete faith in the public service.
The President said so at the launch of the re-building Sri Lanka project at the BMICH yesterday.
The JVP and NPP leader said that he wouldn’t take advantage of the death and destruction caused by the cyclone or use the situation as an excuse to reverse their agenda or weaken it.
President Dissanayake said that in spite of many calling for amending the then Budget, in view of the cyclone, the government presented the proposals that were agreed before the disaster struck.
The United States has announced that it will provide the Sri Lanka Air Force with 10 US Navy TH-57 helicopters free of charge.
The announcement was made by outgoing US Ambassador Julie Chung, who stated, on social media, that the helicopters would be transferred under the United States’ Excess Defence Articles programme. The aircraft are Bell 206 Sea Ranger helicopters previously operated by the US Navy.
US sources said that the transfer was intended to strengthen Sri Lanka’s disaster response capabilities, following the devastating cyclone that struck the island at the end of 2025 and killed more than 600 people. US officials have framed the move as a humanitarian measure aimed at improving aerial rescue and relief operations.
Fair weather will prevail except for a few showers in the Uva, Eastern, Western and Central provinces and in Galle, Matara and Rathnapura districts
Trump cancels US-Iran meetings, urges protesters to take over institutions
Govt. bows to pressure, shelves Grade 6 reforms
AKD: Govt. agenda on track despite Ditwah disaster
SL to receive 10 helicopters from US
Foreign couple held over alleged biopiracy at Horton Plains
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