The Hon. Thilanka U. Gamage

¶ 01 Hon. Deputy Chairperson of Committees, while debating the Regulation under the Foreign Exchange Act, let me note first that the President addressed Parliament today to clarify the current situation at home and abroad. The Opposition complains he did not say what they wanted. The President came to explain to the people, not to recite the Opposition’s script. If the Opposition wanted their words spoken, they should be in government. Had they been in charge, today’s situation would not be where it is.

¶ 02 Since 2020, the economy slid downward, and by 2024 the country was declared bankrupt. When we took over, the country was broken in every economic and political indicator. Step by step, we have lifted those indicators. International institutions and leaders acknowledge that Sri Lanka is emerging from crisis toward real growth.

¶ 03 The Opposition tries to manufacture uncertainty, sowing doubt and claiming the crisis persists, to regain power. Sorry—that will not work. In 2025 we changed fundamentals. Expected tax revenue was 15.3% of GDP; it had fallen to 10%. We not only met but exceeded the target to 15.8%. Total revenue rose to 17.2%. We reduced the budget deficit to about 2.4% of GDP, well below the global 5% benchmark many cite but we long failed to meet.

¶ 04 Primary balance—excluding interest payments—has turned decisively positive, around 5.6% of GDP, meaning domestic revenues cover day-to-day spending without new borrowing for recurrent costs. That is a major achievement the Opposition ignores.

¶ 05 Interest rates that had been at 30–35% have been brought down to single digits near 8%. Inflation, once very high, is now also in low single digits. In balance of payments, we have reduced the deficit, increased exports, and even with some import relaxation have stayed on course. This supports reserve accumulation and underpins today’s FX Regulation.

¶ 06 Specifically, for Business Foreign Currency Accounts we relax the cap on capital account payments from USD 200,000 to USD 500,000 to enable outward investment, lending and debt servicing associated with business expansion. For Personal Foreign Currency Accounts, we raise the cap from USD 20,000 to USD 25,000—greater flexibility for residents. Such positives show we are moving from crisis to a living economy, despite attempts to instil distrust.

¶ 07 The President outlined contingency and preparedness for global shocks. We have rarely had such leadership. We will win through, curbing corruption—Sri Lanka’s standing has improved—stabilising the economy, and creating an environment conducive to investment. In a few years, growth will visibly lift living standards. Let us all work together for a prosperous country. Thank you.