The Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law

¶ 01 Hon. Presiding Member, let us begin by clarifying why these Central Bank regulations are being made and what they are. Previously, export proceeds could be held up to 6 months, with a requirement to convert within 100 days. Given the current domestic and global context—pressure on the rupee and on foreign exchange—the regulation now mandates conversion within a maximum of 40 days. This is not permanent; it addresses current depreciation risks. If the rupee weakens, import-led inflation rises because many consumption goods, raw materials, and fuel are imported; production costs rise; everyday people suffer. Managing the exchange rate is not only about reserves; it is about protecting people from imported inflation.

¶ 02 The Government has, over time, applied temporary import duties and other measures to manage demand; this is not about suppressing exporters or traders but prudent management in a difficult moment by the Government and Central Bank. Every exporter also has a responsibility to the nation to repatriate and convert proceeds within a reasonable time for the collective good.