Hon. Chandima Hettiaratchi

¶ 01 Hon. Presiding Member, I wish to focus on the regulations under the Central Bank of Sri Lanka Act No. 16 of 2023 to bring back export earnings. Historically, under the Exchange Control Act No. 24 of 1953, regulations required repatriation; in 1994, after accepting IMF Article VIII, exporters could hold foreign currency abroad; later, timelines evolved—90 days in 2016; 120 days thereafter; then 180 days via 2017 Act and 2019 regulations. What are we doing now? We reduce the timeline—from 100 days to 40 days. Not a big change, but a 60-day reduction to bring forex home faster. For example, if income is earned on June 1, it must be brought in by July 10. This is not about converting everything to rupees immediately; permitted payments—like external debt service and approved expenses—can be paid first. The residual must then be brought in and converted.

¶ 02 The core objective is macroeconomic: to increase onshore foreign exchange and reserves. Why? Because in the past, the exchange rate was not allowed to act as a shock absorber; reserves were squandered to artificially hold the rate, dragging us to ruin. Now we let the exchange rate function as a shock absorber against external shocks and aim for stability, the foundation of growth.

¶ 03 Hon. Mujibur Rahuman referred to the IMF Managing Director’s letter of May 13. Let me quote:

¶ 04 “Macroeconomic stability has been restored. The economy has grown robustly at 5 per cent y/y in 2024 and 2025. Foreign reserves have strengthened significantly to over 3 months of imports. Price stability has been maintained since mid-2023. Our multi-year revenue-based fiscal adjustment has more than doubled tax collections and delivered primary surpluses for three consecutive years. Debt restructuring has delivered significant debt relief and put public debt on a sustainable path.”

¶ 05 He omitted that 2024–2025 growth is 5% and reserves now cover over three months of imports—after a time when we had no dollars even for essential imports.

¶ 06 The Hon. Leader of the Opposition claimed we simply raised tax rates to fill the Treasury. That is false. We have not merely raised rates. Do not spread fear. Governance failures we inherited are being corrected—discipline restored where theft and chaos prevailed. Hon. Ravi Karunanayake tried to create myths about a massive crisis; better to use his knowledge constructively. Another Member claimed rupee depreciation mechanically increases the dollar debt stock—misleading. Hon. Hector Appuhamy claimed we govern via Emergency due to incompetence; we regret that claim. As for those who suppressed media, assaulted and exiled journalists—those very groups now lecture us. They struggle to accept that ordinary people have taken power.

¶ 07 Thank you.