The Hon. Sarath Kumara, Attorney-at-Law

¶ 01 Hon. Speaker, the Order published in the Gazette of 19 December 2024 under Section 22 of the Foreign Exchange Act, No. 12 of 2017, and the Regulations under the Imports and Exports (Control) Act, No. 1 of 1969, are before Parliament for approval. I will speak briefly.

¶ 02 After 77 years of mismanagement by those who bankrupted this motherland, even as we mark the 77th Independence Day, we continue the struggle for economic freedom. Some parties that long governed this country bankrupted it; as a democratic Government we have taken responsibility to rebuild. We are not only assuming responsibility; we are taking decisions and making laws to do so. The people had to cede decision-making to others, which is why we became a bankrupt state.

¶ 03 We have gazetted this Order under the Foreign Exchange Act to safeguard external reserves, on the recommendation of the Central Bank. It is not new. Temporary suspensions and restrictions are necessary until the crisis is overcome and stability restored.

¶ 04 Our reserves have been raised to USD 6.1 billion and we aim for USD 7.1 billion within a year, and USD 9.2 billion by end-2026. With responsibility and commitment, we are intervening.

¶ 05 Under this Order, we propose limits on outward investments by listed and unlisted companies and by residents: up to USD 0.5 million for CSE-listed companies, USD 0.15 million for unlisted companies, and USD 0.2 million for resident individuals. These are not to harass the public or investors but to steer the economy towards strength and stability.

¶ 06 Under the Imports and Exports (Control) Act, two Regulations are presented. Vehicles under 304 HS codes have been temporarily suspended. Past governments not only bankrupted the economy but also damaged transport facilities. As those now seated in Opposition, consider whether you have the moral right to posture.

¶ 07 We will relax the temporary vehicle import suspension in three phases. Public transport needs support; commercial activity requires vehicles. In phase two, vehicles for commercial purposes will be allowed; thereafter, private vehicles. Conditions will apply: a vehicle imported must be presented for registration within 90 days; a 3% additional levy per month for delay; after six months, re-export will be required. Misuse will result in suspension of import licences for one year.

¶ 08 We do this to aid economic normalization, broaden revenue including through para-tariffs, support tourism growth—from two million arrivals in 2024 towards three million—and strengthen production and public transport.

¶ 09 Regarding rice imports, conflicting reports arose. A shortage occurred because previous administrations failed to manage proper data systems. We are now establishing accurate data. When a shortage emerged, the Cabinet on 02.12.2024 allowed rice imports without licence from 04.12.2024 to 24.12.2024, later extended to 10.01.2025.

¶ 10 We are taking multiple steps to move the economy forward and invite patriotic Opposition Members to join in rebuilding this country. Thank you.