The Hon. Ravi Karunanayake

¶ 01 Hon. Deputy Chairperson of Committees, I am pleased to speak briefly at a time of significant domestic and external pressures.

¶ 02 We welcome adjustments to the Exchange Control framework under the 2017 Act. But note the reality: three years ago, USD 200,000 could purchase something that today cannot be bought even for USD 700,000–800,000. So merely lifting nominal caps to USD 500,000 is insufficient if purchasing power has eroded. We need genuine liberalisation that enables real outward investments.

¶ 03 “Inward” investment accounts pose no issue; funds flow in. The “Outward Investment Account” enables Sri Lankan companies to invest abroad. After the Central Bank declared the country bankrupt—note, Parliament never authorised that declaration—strict prohibitions were imposed; then partially relaxed to USD 200,000; now to USD 500,000. We should regularise faster, to empower investors to expand abroad and bring gains back home.

¶ 04 To the Government benches: do not waste time relitigating the past; that is why you are now in office and we in Opposition. Govern and take the country forward. Have you seen us striking or marching to paralyse the country? No. We have allowed room to govern, recognising how hard it is—especially with rising geopolitical tensions that bring more headwinds than tailwinds. This is our country; do not paint it in one colour.

¶ 05 Since Independence, the United National Party has rendered great service. On agriculture, for example, despite contrary claims, even Ministers admit strides toward self-sufficiency. On power, we now generate nearly 100% of electricity domestically on normal days without emergency imports, thanks to earlier investments. We repeatedly warned of fuel vulnerability and asked why renewable energy was being obstructed. With sun, wind and water resources, we should scale up and cut FX outflows. We questioned excessive costs and BESS procurement—why pay Rs. 80 per unit when Rs. 40 is feasible? We must avoid being captured by mafias.

¶ 06 On the Central Bank, the President said today he has tasked it to prepare an analytical report on current conditions. While independence has been granted, the CBSL must act accordingly. Reserves now cited at USD 6.5 billion partly include hot money via commercial banks—short-term placements for three to four months. That is not the reserve quality we need; we need durable own reserves. The rupee’s cross-rate has fluctuated from about Rs. 310 to Rs. 313 per USD. This affects inflation if depreciation persists.

¶ 07 The CBSL must manage beyond rates and rupee smoothing: focus on growth, jobs, and structural FX generation. At present, support is limited.

¶ 08 Externally, we face issues beyond our control. As the President said, government and opposition must work together. We have long urged this, but the Government often behaves otherwise. Let us change. After 78 years, let us move forward together.

¶ 09 The Strait of Hormuz carries about 22% of global oil flows—about 14.2 million barrels of crude and 5.9 million barrels of refined products daily. Disruptions sharply raise prices: Brent moved from around USD 62.50 to USD 89 in days, with estimates of USD 100–120 likely. Shortages matter more than price alone.

¶ 10 LNG and LPG are also affected. Following attacks affecting Qatar’s energy hubs, LNG output was reportedly halted, and LPG prices have spiked by about 55%. Gas is essential to households; we must plan for continuity.

¶ 11 Sri Lanka now has a strong opportunity to attract FDI. Yet despite years of talk, FDI remains low. For the next two to three years, many investors will avoid the Middle East; we must seize this opening—through the BOI and Colombo Port City. But the Government has not marketed adequately. IMF engagement was necessary post-default, but we must press for investor-friendly policies—tax holidays, investment reliefs—to draw firms. Investors do not come out of love; they come when returns are clear.

¶ 12 On fuel: the President noted RM Parks, Shell, IOC and CPC import fuel now. When the CBSL declared bankruptcy, only CPC could import. With multiple companies, supply risk is shared—that is investment at work, a framework we advanced earlier governments to establish. With more competitors like Sinopec, competition will increase.

¶ 13 Debt: by April 2028, we will owe between USD 5–6 billion including multilateral service—about USD 2–3 billion annually—and bondholder payments thereafter. This is not unpayable if we attract investment and grow exports; we must earn and pay, not just seek extensions. Let us focus on enabling and strengthening investors to power that path.