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SLPP rebels propose amendments to 2017 Foreign Exchange Act to overcome financial crisis

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Prof. Peiris

By Shamindra Ferdinando

The economy was in such a precarious situation that the Wickremesinghe-Rajapaksa government couldn’t further delay the restoration of the relevant provisions of the 1953 Foreign Exchange Act to compel the private sector to bring back export proceeds, rebel SLPP MP Prof. G.L. Peiris said yesterday (30).

Referring to a spate of declarations made by Justice Minister Dr. Wijeyadasa Rajapakshe, both in and outside Parliament, Prof. Peiris emphasised the urgent need to amend the 2017 Foreign Exchange Act enacted by the Yahapalana administration to discard the tried and tested law that existed since 1953. Altogether 94 MPs voted for the new Bill whereas 18 voted against. The rest skipped the vote.

The former minister dealt with the issue at the weekly media briefing held at the SLPP rebels’ office at Nawala.

Prof. Peiris explained how tangible measures, if taken to amend the Yahapalana Foreign Exchange Act, could help the government to ease pressure on the Treasury. “People do not have to be further burdened in a bid to bridge the Budget deficit. The government shouldn’t hesitate to pressure exporters to bring back export proceeds by amending the 2017 Bill,” Prof. Peiris said, warning the government of dire consequences if it failed to act immediately.

The academic alleged that the country was paying a very heavy price for the deliberate failure on the part of the government to collect taxes and tax concessions granted to those near and dear to the powers that be.

Prof. Peiris asked whether the Treasury and the Inland Revenue Department deliberately allowed influential private sector persons to skip paying taxes. Referring to statements issued by MP Patali Champika Ranawaka and Minister Wijeyadasa Rajapakshe, Prof. Peiris said that the IRD and the Excise Department pathetically failed to meet revenue targets.

The former minister said that the overall failure of revenue collection apparatus consisting of IRD, Excise and Customs to meet revenue targets over the years had contributed to the developing economic crisis and the powers that be were yet to take remedial measures.

Prof. Peiris said that massive fraud perpetrated by liquor manufacturers with the connivance of the interested parties is a case in point. The former minster discussed how the Treasury suffered heavy losses and how two liquor manufactures were allowed to continue without paying what they owed the Excise Department.



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Navy seizes an Indian fishing boat poaching in northern waters

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During an operation conducted in the dark hours of 27 Dec 25, the Sri Lanka Navy seized an Indian fishing boat and apprehended 03 Indian fishermen while they were poaching in Sri Lankan waters, south of the Delft Island in Jaffna.

The seized boat  and Indian fishermen (03) were brought to the Kreinagar Jetty and were handed over to the Fisheries Inspector of Jaffna for onward legal proceedings.

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Delay in govt. response to UK sanctions on ex-military chiefs, and others causes concern

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General Silva / Admiral Karannagoda

Admiral of the Fleet Wasantha Karannagoda said that he is still waiting for the government’s response to the UK sanctions imposed on three ex-military officers, including him, and a former member of the LTTE.

The former Navy Chief said so in response to The Island query whether he was aware of the position taken by a three-member ministerial committee, consisting of Foreign Minister Vijitha Herath, Justice and National Integration Minister Harshana Nanayakkara and Deputy Defence Minister Maj. Gen (retd) Aruna Jayasekera.

The government named the committee in the wake of the UK declaration of travel bans and asset freezes in respect of Karannagoda, General Shavendra Silva, General Jagath Jayasuriya and Vinayagamoorthy Muralitharan, also known as Karuna. Maj. Gen. Jayasekera said that they inquired into the issue at hand.

Karannnagoda said that he would like to know the government’s recommendations if the ministerial committee briefed the Cabinet as per a decision taken by the Cabinet of Ministers. Karannagoda said that the issue should have been taken at the highest level as various interested parties continue to humiliate the war-winning military by targeting selected individuals.

Other sources, familiar with the issues at hand, told The Island that the government was yet to announce its stand.

Sources pointed out that the Opposition has been silent on what they called a matter of utmost national importance.

Cabinet spokesman Dr. Nalinda Jayathissa is on record as having described the UK move as a unilateral move and that committee was formed to examine the developments and recommend appropriate measures to the Cabinet.

Foreign Minister Herath told The Island the government was not successful in getting the British to withdraw sanctions. Describing the UK decision as unilateral, the Miniser said that the government conveyed its concerns but the UK didn’t change its stand.

The Island raised the issue with Minister Herath and Admiral Karannagoda in the wake of British MP of Sri Lankan origin, Uma Kumaran requesting the UK Foreign Secretary Yvette Cooper to expand on the government’s sanctions imposed on the four above-mentioned persons.

During a Foreign Affairs Committee meeting on 16 December, the MP for Stratford and Bow highlighted the lack of accountability and political will from the current Sri Lankan government to address war crimes and mass atrocities committed in Sri Lanka.

Sources said that David Lammy, who served as Secretary of State for Foreign, Commonwealth and Development Affairs at the time of the declaration of sanctions, had no qualms in declaring that the action taken against four Sri Lankans was in line with a commitment he made during the election campaign to ensure those responsible wouldn’t be allowed impunity. The UK government statement quoted Lammy as having said that this decision ensured that those responsible for past human rights violations and abuses were held accountable.

By Shamindra Ferdinando

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Sri Lanka outlines seven key vectors of international cooperation at Moscow forum

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Shobini

Sri Lankan Ambassador to the Russian Federation, Shobini Gunasekera recently presented a conceptual framework of seven key vectors that defined contemporary international relations and facilitated dialogue among States. She made the presentation at XI Moscow International Financial and Economic Forum held under the theme “Building Bridges: Partnership without Borders”.

In her address, the Ambassador emphasised that these vectors represent the channels through which ideas circulate, trade expands, and peace is strengthened, serving as guiding principles for cooperation amid global uncertainties. The seven key vectors highlighted were economic ties as a foundation for long-term stability; political choice and diplomacy through dialogue and multilateral engagement; security cooperation to address cross-border threats; cultural linkages through education, tourism, and professional exchanges; technological advancement, particularly in digital systems and artificial intelligence; environmental stewardship through collective action on renewable energy and climate change; and humanitarian obligations, including disaster relief and development cooperation.

 Drawing on Sri Lanka’s experience, the Ambassador illustrated the practical application of these principles by highlighting the country’s strategic location in the Indian Ocean, its role as a trade and logistics hub, and its active engagement in regional groupings such as BIMSTEC and the Indian Ocean Rim Association, where the Russian Federation serves as a Dialogue Partner.

 The potential for enhanced Sri Lanka–Russia bilateral cooperation was underscored, particularly through complementarities between Russia’s technological and energy expertise and Sri Lanka’s logistical capabilities and maritime infrastructure. She noted that such synergies could support joint initiatives in trade, innovation, tourism, and logistics, while cultural and scientific exchanges would further strengthen mutual understanding between the two countries.

Concluding her remarks, the Ambassador stated that sustained progress requires dialogue, mutual respect, and forward-looking partnerships capable of shaping a shared and stable future.

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