The Hon. (Dr.) Harshana Suriyapperuma – Deputy Minister of Finance and Planning

¶ 01 Hon. Speaker, on behalf of the Minister of Finance, Planning and Economic Development, I respond as follows.

¶ 02 (a) (i) Hon. Member, as you would note, the national accounts have different base years. Over the past 20 years, the total value of GDP in SLR and USD, and growth rates for each year are provided in Annex 01.

¶ 03 (ii) Expected GDP growth and projections for the next five years can be viewed via three lenses: real GDP growth, GDP deflator (price) growth and nominal GDP growth. The nominal GDP in billions of rupees is given in Annex 02.

¶ 04 (iii) The total value of exports in SLR and USD and as a percentage of GDP for the past 20 years is in Annex 03.

¶ 05 (iv) The list of top export items under agricultural, industrial, mineral and unclassified categories is in Annex 04.

¶ 06 (v) Aggregate details are in Annex 05; service earnings (USD million) include: 2015 – 5,605; 2016 – 6,397; 2017 – 7,138; 2018 – 8,374; 2019 – 7,474; 2020 – 3,035; 2021 – 2,475; 2022 – 3,062; 2023 – 5,416; 2024 (provisional) – 6,910.

¶ 07 (vi) The main contributing service sectors include: - Tourism - Maritime transport - Computer services - Air transport - Technical, trade-related and other business services - Professional and management consulting services - Construction - Telecommunications

¶ 08 (b) (i)–(iii) Legal framework and compliance: - Under the Exchange Control Act, No. 24 of 1953, Gazette 759/15 dated 26.03.1993 exempted exporters from the requirement to repatriate export proceeds to Sri Lanka. - This exemption was revoked by Gazette 1986/43 dated 01.04.2016 under the same Act. - Thus, from 1993 to 2016 there was no statutory requirement to repatriate export proceeds. - With the Foreign Exchange Act, No. 12 of 2017 replacing the Exchange Control Act, the requirement to repatriate continued under the Foreign Exchange Act framework. - Due to declining FX reserves from 2020, rules on repatriation of export proceeds were reintroduced in 2021 under the Monetary Law Act. - Under the Central Bank of Sri Lanka Act, No. 16 of 2023, the “Rules on Repatriation of Export Proceeds to Sri Lanka, No. 01 of 2024” require all exporters of goods and/or services to bring export proceeds to Sri Lanka within 180 days from shipment/provision date. - According to bank reports submitted to CBSL, export proceeds for 2022–2024 were USD 17,756 million; USD 14,997 million; and USD 16,008 million, respectively, representing 110%, 87% and 81% (share relative to shipments/invoices as monitored). - An “Export Proceeds Monitoring System” has been introduced (development stage since 2022) to closely monitor compliance. - Exporters may retain proceeds outside Sri Lanka for up to a maximum of 180 days before repatriation. - Rule 11 provides that any exporter (direct/indirect) or licensed bank not complying may be proceeded against by the Director, Department of Foreign Exchange, CBSL. - Under Section 107(1) of the CBSL Act, administrative action may be taken for violations of the Act or Rules; procedures for such administrative measures are being finalized and, once in force, can be applied against non-compliance.

¶ 09 (c) Does not arise.