The Hon. Wijesiri Basnayake

¶ 01 Hon. Deputy Speaker, today we debate a Regulation under the Foreign Exchange Act, No. 12 of 2017, which replaced the Exchange Control Act, No. 24 of 1953. The core objectives are to provide for promotion and regulation of foreign exchange and to place responsibility for that promotion and regulation.

¶ 02 In recent times the country faced foreign reserve shortfalls. As the Central Bank noted, macroeconomic stability was not ensured at various times. To stabilise the economy, measures were taken to limit outward foreign exchange.

¶ 03 Today we discuss the approval of a new Regulation under Section 22 of the 2017 Act, under the National People’s Power Government, at a time when the economy is stabilising and progressing. Improving conditions in the FX market are essential for our businesses—to invest, to expand abroad, and to scale. This Regulation prioritises and implements necessary relaxations. Export companies earning FX—especially to expand businesses overseas—need facilitation. Therefore, we relax limits on capital account payments through Business Foreign Currency Accounts, increasing the ceiling from USD 200,000 to USD 500,000.

¶ 04 We also relax long-suspended outward capital transactions by residents through Outward Investment Accounts funded in rupees. For Personal Foreign Currency Accounts, we raise the individual cap for using own foreign exchange from USD 22,000 to USD 25,000.

¶ 05 Economically, Sri Lanka has stabilised and is moving to growth. Economic performance depends on combined political, economic and social stability. In 2025, our Government ensured sound fiscal management, enforced zero tolerance for corruption, and applied the law equally from the highest to the lowest. As a result, stability and economic management improved. Inland Revenue, Customs and Excise all met 100% of their targets last year, enabling us to mobilise trillions of rupees.

¶ 06 We used these funds to assist those affected by the “@DOo” cyclone. Without borrowing even a cent, we allocated Rs. 500 billion for relief. While the Opposition proposed amending the 2026 Budget, prudent management allowed us to fund relief and still drive progress. In 2025, we made major capital outlays for education, health, highways, transport, industry support and trade—allocating Rs. 1.4 trillion—and similarly large capital allocations this year. We managed revenues and expenditures well and ensured good governance.

¶ 07 As a result, in 2025 Q1 the economy grew by 4.8%, in Q2 by 4.9%, and nearly 5% in Q3. We aim to take our small USD 100 billion economy toward USD 200 billion. The question is not whether, but how fast—and that requires bipartisan cooperation. Meanwhile, we reduced interest rates from around 30% to single digits, extended credit relief to industry, and brought inflation into the 2–5% range. We have provided funding space for industry and enterprise.

¶ 08 What does the Opposition do? When a fuel issue arises, they try to panic the public—like knocking a bel fruit off a palmyrah frond. But that cannot mislead or alarm our people. We ask the public to help us ensure the success of the NPP Government’s economic programme. We guarantee to improve welfare, ease and living standards as promised. Thank you.