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Govt. under pressure to tackle corruption in revenue inflow

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Amendments to Exchange Control Act contemplated

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (07) said the government would introduce some amendments to the Exchange Control Act No 12 of 2017 as part of its response to the continuing financial crisis.

The SLFPer mentioned that amendments were necessary to restore the authority exercised by the Central Bank in respect of regulation of foreign exchange before the enactment of the Exchange Control Act No 12 of 2017, adding that the government has received several proposals in this regard.

The State Finance Minister said so when The Island sought a clarification as regards rebel SLPP accusations that the Exchange Control Act No 12 of 2017, enacted during the Yahapalana administration, allowed exporters to ‘park’ funds overseas. Vasudeva Nanayakkara, Wimal Weerawansa and Gevindu Cumaratunga had estimated the stashed amount at over USD 35 bn.

Siyambalapitiya acknowledged that the amendments that had been introduced in 2017 deprived the Central Bank of certain regulatory powers.

The Island

raised the issue at hand with Justice Minister Dr. Wijeyadasa Rajapakse, PC, yesterday (07) consequent to his declaration that as much as USD 53.5 bn had been ‘parked’ overseas. This claim was made during the committee stage of the ongoing debate on the Appropriation Bill.

Minister Rajapakse said that Nanayakkara, Weerawansa and Cumaratunga, too, had referred to the same funds though he was able to obtain the latest figures.

Responding to another query, the former President of the Bar Association of Sri Lanka emphasised that the situation had further deteriorated due to the Covid-19 pandemic, etc. According to him, the figures available with him dealt with the past 12 years.

The Justice Minister said that he discussed this with the Central Bank. Lawmaker Rajapakse said that in the absence of regulatory powers, the Central Bank hadn’t been able to make necessary interventions.

The Governor of the Central Bank, Dr. Nandalal Weerasinghe, told The Island that the urgent need for amendments to the Exchange Control Act No 12 of 2017 had been taken up with the relevant authorities. Dr. Weerasinghe said that the ongoing controversy, over funds ‘parked’ overseas, gathered momentum against the backdrop of his recent speech, at the AGM of the Sri Lanka Apparel Exporters Association, where the inordinate delay, on the part of the exporters to convert export earnings to rupees, was highlighted.

In terms of current foreign exchange regulations, the exporters are required to convert 25 percent of their export proceeds, within a month, and all export proceeds within 180 days.

Having found fault with apparel, tea and rubber for the unsatisfactory conversion rate of forex earnings, Dr. Weerasinghe said that they were in the process of examining a selected group of exporters but realized the majority weren’t forthcoming with the required data.

The Justice Minister said that the entire revenue collection system was utterly corrupt, influenced and manipulated by interested parties. “The people are suffering because of continuing corruption at every level. Those responsible for revenue collection are part of the growing racket. They seem to be unstoppable,” he said.

Dr. Rajapakse said that there couldn’t be a better example than continuing the racket in security stickers on bottles of liquor to highlight the pathetic situation here. The Minister alleged that the racket, involving liquor manufacturers and some excise officials, deprived the Treasury a massive amount in revenue. In spite of frequent media exposure, the racket continued unabated, Dr. Rajapakse said, adding that those who defended the manufacturer of the security sticker were all part of the scam.



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Peter Magyar sworn in as Hungary’s PM, ending Orban’s 16 years in power

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Hungary's incoming Prime Minister Peter Magyar delivers a speech during his swearing-in ceremony at the Hungarian parliament in Budapest on May 9, 2026 [Aljazeera]

Peter Magyar has been sworn in as Hungary’s new prime minister, almost a month after parliamentary elections that ended Viktor Orban’s 16 years in power.

Magyar, 45, who leads the centre-right Tisza party, was propelled into office on promises of change after years of economic stagnation under Orban, and strained ties with key allies, including the European Union.

On Saturday, Magyar invited Hungarians to “step through the gate of regime change”.

His party has a huge parliamentary majority, winning 141 of the 199 seats.

However, Magyar faces several challenges in his new role, including restoring Budapest’s relations with the EU, reviving the economy and tackling a budget deficit that reached almost three-quarters of its full-year target by April.

A ceremony was held inside Hungary’s neo-Gothic parliament building as Magyar was sworn in. The EU flag, removed under Orban, was displayed inside the chamber for the first time in 12 years.

The newly appointed parliamentary speaker, Agnes Forsthoffer, used her first decision in office to order the flag’s reinstatement, describing the move as “the first symbolic step on this path [back to Europe]”.

The new prime minister aims to strike a deal with the EU that would unlock around $20bn in frozen funding. The money was withheld over concerns about worsening human rights under Orban and a decline in the rule of law.

During Orban’s tenure, Hungary drifted further away from the EU as ties with Moscow deepened. The former prime minister used his veto in the European Council to oppose sanctions on Russia and block support for Ukraine.

Theofanis Exadaktylos, a professor of European politics at the University of Surrey, told Al Jazeera that Magyar will need to prove he is different from Orban while dealing with the bureaucracy left behind by his predecessor.

“The challenges for the new PM are primarily related to the extensive presence of the previous regime. Orban was in power for such a long time and he has managed to change Hungary substantially from an administrative point of view. To that end, uprooting the previous establishment will be a challenge,” he said.

“The second [challenge] will be to establish himself as different to the previous regime. Considering his background there will be sceptic voices, however let’s not forget that ideologically he belongs to the right,” he continued.

“Nonetheless, his election marks a turning point in Hungary showcasing that the previous regime had started to lose ground in its popular basis. The third challenge is the way he will reconnect Hungary to the European Union: to that end, he has a bit of work to do from a diplomatic point of view to create new allies within the Union.”

Magyar’s rise to prime minister is widely regarded as a remarkable feat. He was largely unknown in Hungarian politics until early 2024, when he became embroiled in a public dispute with Orban’s ruling Fidesz party, of which he had previously been a prominent member.

[Aljazeera]

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Senior Sri Lankan monk arrested for alleged child sex crimes

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Sri Lankan authorities arrested the senior Buddhist monk for the alleged sexual abuse of a minor girl [Aljazeera]

A prominent Buddhist monk has been arrested in Sri Lanka for allegedly sexually abusing an 11-year-old girl, in the highest-profile case involving a local religious leader.

Authorities took 71-year-old Pallegama Hemarathana into custody on Saturday from a private hospital in the capital, Colombo, where he had checked in for treatment as a criminal probe against him progressed.

Hemarathana is accused of committing the abuse in 2022 in a highly venerated temple in Anuradhapura, where he is the chief priest.

Authorities said the victim’s mother has also been arrested for aiding and abetting the monk.

“We will be guided by the magistrate on further action,” a police statement said Saturday.

Hemarathana, who had been subject to a foreign travel ban, was detained on the orders of the chief magistrate in Anuradhapura, after child protection authorities cited complaints of delays in his arrest, reported Sri Lanka’s Daily News. It said the court instructed police to arrest Hemarathana and bring him before the court “without delay”.

There have been several cases of clergy abusing children in Sri Lanka, but the latest arrest involves the most senior monk to be accused of such a crime.

Last month, 22 monks were arrested at Colombo’s international airport after 110kg (242lbs) of cannabis were found hidden in their bags, in what was the biggest drug smuggling discovery ever in the facility.

[Aljazeera]

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Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

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Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

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