The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Deputy Speaker, today’s debate concerns a new Regulation issued under Section 22 of the Foreign Exchange Act, No. 12 of 2017. The Government has presented many relevant points. As Hon. Basnayake stated, the objective is clear.

¶ 02 While discussing this, both the Leader of the Opposition and the President spoke this morning about the unexpected situation unfolding globally and locally, and its impact on our economy. Our President called for the attention of world leaders to this situation.

¶ 03 We are not a Government that accepts any attempt by one state to subjugate another. We stand for protection of fundamental human rights globally. The present war has severely affected the Middle East, and thereby our over one million workers there and, through them, our economy. No one desired this war. Powerful states sometimes manufacture wars to demonstrate power or secure commercial advantages, but ordinary people suffer. Earlier it was Palestine-Israel; now it is spreading across the region. Our position is that world leaders must intervene to stop the war and protect life. Every human life has value. The Government will state what must be said; we do not wait for the Opposition to tell us.

¶ 04 Turning to the Regulation under the Foreign Exchange Act, the Opposition Leader spoke of gas, coal and fuel, and claimed poverty has risen. He cited the Official Poverty Line (OPL) maintained by the Department of Census and Statistics. He forgot his own period in office. The OPL was Rs. 5,223 in 2012/13; Rs. 6,117 in 2016; Rs. 6,966 in 2019. With the crisis and rupee depreciation, it rose to Rs. 13,777 by December 2022; in 2024 it was Rs. 17,014. In January 2026 it reduced to Rs. 16,730—indicating inflation control and price moderation. District values vary: Colombo Rs. 18,044; Gampaha Rs. 17,951; the national OPL Rs. 16,730. This does not show an increase in poverty but some easing relative to the peak.

¶ 05 On LPG supply, the Government ensured uninterrupted provision. For 2026, contracts cover 380,000 MT. We imported 24,000 MT in January, 28,000 MT in February, and plan 38,000 MT in March with 10 vessels scheduled by the 31st. Our March requirement is 32,000 MT. Today’s distribution plan includes 82,901 cylinders of 12.5 kg, 20,500 cylinders of 5 kg, and 21,199 cylinders of 2.5 kg. Daily distribution has been raised from 1,200 MT to 1,800 MT.

¶ 06 One company sold about 400,000 cylinders but did not bring adequate gas to fill market demand. We instructed them to ensure continuous supply; spot-lifting from passing ships is not acceptable. They have now agreed and are releasing cargoes: 3,675 MT landed on the 28th, with 3,420 MT already released and 255 MT pending. Further 3,675 MT vessels are due around 10 March and 20 March—totalling 11,025 MT for March. Their normal monthly supply is 10,000 MT; plans are in place to meet that. They have also obtained approval to source 10,000 MT to Hambantota from their contracted supplier for the coming months. If shortages persist and consumers suffer, we will facilitate new cylinders—targeting an additional 100,000 cylinders, with technical assessments underway and releases to begin from the 12th.

¶ 07 On exchanging yellow to blue cylinders: if the company that supplied yellow cylinders fails to continuously supply and consumers remain distressed, we will consider permitting exchanges. The Consumer Affairs Authority is surveying the market; the company has promised uninterrupted supply.

¶ 08 Fuel supply is also secured via agreements. Since last October, 17 fuel vessels have come from India and about five from Singapore. Storage capacity remains a constraint—about five days for LPG and a little under a month for fuel—so the Government is advancing projects for new LPG tank farms and modernising fuel tank farms to expand capacity.

¶ 09 Therefore, the public need not panic or engage in rush-buying. Adequate fuel and gas are being supplied, and any recent difficulties are now easing.

¶ 10 On inflation and prices: the Colombo CPI index moved from 136 in 2016 to 155 in 2019, 264 in 2022, 308 in 2023 and around 300 in 2024; inflation has come down, and the poverty line has also eased accordingly. With political and economic stability, we are improving the investment climate, agriculture, and living standards. Even under these conditions, we take necessary decisions to avoid burdening the public. Thank you.