The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Presiding Member, first, let me note that Mr. Ranjan Gunawardhana, who served in this Chamber for 39 years since 1986, retired on March 1st. We wish him a happy retirement.

¶ 02 On today’s subject: easing limits on transactions through Foreign Currency Accounts and Personal Foreign Currency Accounts signals to the world our economic and political stability. Not long ago, we had import controls, including on vehicles, and a foreign exchange and debt crisis. We could not borrow from abroad. Today, we can allow residents to spend more of their export-earned FX abroad — raising the cap from USD 200,000 to USD 500,000 for businesses, and from USD 20,000 to USD 25,000 for individuals for capital transactions. Countries set such limits prudently; easing them now shows confidence.

¶ 03 Economic stability rests on political stability. Today there is no political capture of processes; no need for political patronage to get approvals. The private sector cooperates, pays taxes, and sees returns as public goods — expressways, water, infrastructure — not private gain. That stability draws investors: a Japanese delegation of about 40 from MNCs visited — the largest in a decade. We are calling PPPs for Kahatagaha Graphite and SSP from Eppawala phosphates via transparent public notices — not in secrecy.

¶ 04 With improved stability, revenues come from tourism, remittances, diaspora, and especially exports. Exports in 2025 were USD 17.2 billion. Our target this year is 10% monthly growth; in January, we achieved 13.3% despite global uncertainty and the cyclone. Value addition clusters along the Kelani were not materially impaired. We protected confidence and stability.

¶ 05 We raise FX spending caps because we trust FX inflows to continue. We capped vehicle import outflows around USD 2 billion and made the bold choice to proceed, transparently — which is why people trust this Government.

¶ 06 Recent fuel queues: people themselves reflected why they queued; the attempt by some media to manufacture panic failed because people trust the Government to resolve issues.

¶ 07 We do not wish for any world war. Having suffered 30 years of conflict, our people know the pain. Arms manufacturers profit by arming both sides; we seek UN engagement to end the conflict swiftly and will support any mediation within our capacity.

¶ 08 If we had a severe FX crisis or if the previous administration were in office, today’s liberalising Regulation would never have come. We, however, analyse international developments, have a framework and roadmap, and can take temporary holds when needed, as we did after the cyclone.

¶ 09 With political stability and a two-thirds majority, we will not abuse power. Easing caps and liberalising capital accounts will drive re-investment by FX earners, strengthen markets and stability. No need for panic; we proceed in good accord with our people.

¶ 10 Thank you for the time.