News
Importers, exporters scapegoated for shortage of foreign currency
by Sanath Nanayakkare
Sri Lankan importers and exporters are blamed for the mismatch in cash flows into the country even though the problem is due to successive governments having borrowed heavily from international lenders beyond their means without any sustainable strategy to repay those loans, says an expert.
At a virtual press briefing held by the Central Bank of Sri Lanka yesterday, Deputy Governor Dhammika Nanayakkara responding to a question on the shortage of foreign currency liquidity in the market said: “On the one hand, importers are looking to frontload their imports assuming the rupee will depreciate and their import costs will go up. They borrow rupees and purchase dollars from the market and try to hoard goods. On the other hand, exporters are holding on to their dollar balances without converting them into rupees thinking they can sell them at a higher value and make a gain when the dollar appreciates. But the export proceed conversion rule which came into effect on May 28, requires exporters to convert 25 percent of repatriated proceeds with possible exemptions up to 10 percent for specific export sectors or industries or individual exporters based on their import input requirements.”.
“Another tactic the commercial banks are adopting is when there is a lot of demand to open letters of credit (LCs) for imports, the banks ponder over the real necessity to import such goods and act on it. That is why a particular bank would ask importers to come and open their LC on another day or Bank A would ask a prospective importer to go to Bank B for this purpose. However, so far this has not affected the import of essential or intermediary goods, the Bank said.
Central Bank Governor Prof. W. D Lakshman said: “We have introduced measures to rationalise selected non- essential imports. We have proposed to the government to put strict regulations to curb the import of non-essential goods and this is still at discussion level. Some proposals we make to the government are accepted and some are not.” He said this responding to a question whether household electric goods and items which are identified by some sections as luxury goods would also come under the import ban anytime soon.
Central Bank’s Director of Economic Research Dr. Chandranath Amarasekara referred to the rule of mandatory conversion of 10% of workers remittances to rupees by banks on a weekly basis as another measure to add to build up the foreign exchange reserves.
Speaking to the media on July 5, State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal said both exporters and importers were willing to cooperate with the government to find a solution to the foreign exchange liquidity issue, as it would be beneficial for all stakeholder in the long term.
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Mechanism to be established involving university academics and experts for Education Reforms – President
President Anura Kumara Dissanayake stated that the Government is taking steps to establish a comprehensive mechanism, supported by an appropriate legal framework, to bring together university academics, experts and all relevant parties in order to resolve issues arising during the implementation of education reforms.
The President made these remarks during a discussion with the Federation of University Teachers’ Associations (FUTA) held on Wednesday (21) morning at the Presidential Secretariat.
During the discussion, FUTA members emphasized the challenges encountered while trying to implement educational reforms through a framework established by the National Institute of Education, in line with the current laws and regulations.
They further emphasized that while their association acknowledges the need for new education reforms, the urgency of such reforms is greater for students in rural schools than for those in urban schools.
The Federation of University Teachers’ Associations further stated that they appreciate the decision taken by the Government, under the leadership of the President, to address the issues arising from education reforms and affirmed their readiness to contribute to this process.
As a continuation of the previous discussion, proposals addressing the challenges faced by academics within the university system, along with possible solutions, were presented to the President. In response, the President emphasized that the Government would take all possible measures to safeguard the university system and strengthen education.
The discussion also covered proposed amendments to the Universities Act.
President Anura Kumara Dissanayake noted that, in the aftermath of the recent disaster, the Government has been effectively implementing a nationwide rebuilding programme, addressing economic stability, development and all critical sectors. The President also called upon university academics to actively support these reconstruction efforts.
The meeting was attended by Minister of Ports and Civil Aviation, Anura Karunathilaka, as well as representatives of the Federation of University Teachers’ Associations, including its President, Prof. P. R. Weerathunga, Vice President M. A. M. Sameem and Secretary Charudaththe Ilangasinghe.
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New integrated framework to bring all stakeholders together to safeguard and rebuild Central highlands – President
President Anura Kumara Dissanayake stated that the isolated functioning of institutions responsible for construction and land management, agriculture, livestock and environmental conservation has posed challenges in restoring the Central Highlands, which were devastated by Cyclone Ditwah. The President further noted that efforts are underway to establish a new integrated framework, bringing together all relevant parties to swiftly safeguard and rebuild the Central Highlands
The President made these remarks during a discussion held on Wednesday (21) at the Presidential Secretariat with representatives from the Asian Development Bank (ADB), the United Nations Development Programme (UNDP) and relevant government and private sector institutions, focusing on securing the Central Highlands and restoring forest plantations.
It was emphasized that nearly 4,000 landslides have occurred in the Central Highlands due to Cyclone Ditwa and that prolonged unauthorized construction, cultivation activities and lack of proper maintenance have contributed to this situation. The discussion also stressed the urgent need for a national policy to secure the Central Highlands and ensure its preservation for future generations.
The discussion also addressed the need for an Authority empowered under the relevant legislation to oversee these activities and President Anura Kumara Dissanayake instructed officials to expedite the implementation.
Representatives from the Asian Development Bank (ADB) and the United Nations Development Programme (UNDP) emphasized the necessity of maintaining a dedicated financial fund for these initiatives and confirmed their full support to Sri Lanka for the restoration of the Central Highlands.
Representatives who attended included Country Operations Head, ADB Sri Lanka Resident Mission, Cholpon Mambetova, Senior Agricultural and Natural Resources Specialist at the ADB Sumith Pokhrel and Assistant Project Officer Krishanthi Dabare, UNDP Resident Representative in Sri Lanka Azusa Kubota and programme representatives Wageesha Gunasekara and Sugandhi Samarasinghe.
Also participating were Commissioner-General of Essential Services and Secretary to the Ministry of Plantation and Community Infrastructure, Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta along with senior officials from the relevant Ministries and heads of other government and private institutions.
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ICC T20 World Cup Trophy tour in Sri Lanka launched under President’s patronage
The official tour showcasing the ICC T20 World Cup trophy, which will be jointly hosted by India and Sri Lanka in 2026, was formally inaugurated on Wednesday (21) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.
The trophy will be displayed in several major cities across the island from Wednesday 21st until Saturday 24th, over a period of four days. Cricket fans will have the opportunity to see the golden trophy up close during the Sri Lanka vs England One-Day International match at the R. Premadasa International Stadium in Colombo.
Subsequently, plans are in place to take the trophy to the cities of Kandy, Dambulla and Jaffna, providing cricket enthusiasts in those regions as well with the opportunity to take commemorative photographs with the World Cup trophy and view it. The primary aim of this tour is to generate excitement and build spectator interest in the lead-up to hosting a World Cup tournament in the country.
The ICC Men’s T20 World Cup is scheduled to be held from 7th February to 8th March 2026 co-hosted by Sri Lanka and India. This World Cup is the largest tournament Sri Lanka will host since the T20 World Cup held in 2012.
The tournament schedule was revealed on 25th November 2025 in India, where the International Cricket Council (ICC) selected the R. Premadasa International Stadium in Colombo, the Pallekele International Stadium and the Colombo SSC Ground as the venues for matches in Sri Lanka.
Accordingly, 8 matches are scheduled at the R. Premadasa International Stadium, 5 matches at the Colombo SSC Ground and 7 matches at the Pallekele International Stadium.
Twenty countries are set to participate in this tournament. Twenty matches of the tournament are scheduled to be held in Sri Lanka, with all matches involving the Pakistan team to be played in Sri Lanka. Furthermore, a special feature is that if the Pakistan team qualifies for the semi-finals and the final, Sri Lanka will also host those two matches.
In that event, the final will be held at the R. Premadasa International Stadium in Colombo, increasing the number of matches scheduled for Sri Lanka to 22.
Apart from the host nations Sri Lanka and India, Test-playing nations England, South Africa, New Zealand, Pakistan, West Indies, Bangladesh, Ireland, Zimbabwe and Afghanistan will be represented in this tournament. Additionally, the United States of America, Canada, Italy, the Netherlands, Namibia, Nepal, Oman and the United Arab Emirates are the other contributing countries.
The T20 World Cup to be held in Sri Lanka at the beginning of 2026 can be considered an excellent opportunity to deliver effective value to the country’s economy, tourism industry, sports development, international promotion and society.
In particular, the arrival of teams, media groups and thousands of spectators, including foreign tourists, will generate significant foreign exchange earnings for the country. It is also expected to create short and long-term employment opportunities in various sectors including hotel and food & beverage businesses, transport services and technical and operational services.
By Sri Lanka hosting this tournament, long-term benefits such as increased opportunities for new investments as Sri Lanka is recognised worldwide as a tourist destination, the identification of Sri Lanka as a year-round sports tourism hub and the strengthening of Sri Lanka’s international profile leading to an enhancement of the country’s value, will be attained.
Minister of Youth Affairs and Sports, Sunil Gamage, Deputy Minister of Sports, Sugath Tilakaratne, Director General of Sports, S. Achchudan, Sri Lanka Cricket President, Shammi Silva along with the Executive Committee and a group including Sri Lanka’s T20 World Cup team captain Dasun Shanaka and Head Coach, Sanath Jayasuriya were also present at the occasion.
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