Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

## Summary Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha presented a regulation under the Foreign Exchange Act No. 12 of 2017 for parliamentary approval, seeking to extend existing foreign exchange relaxations for a further six months via special Gazette No. 2467/67. The regulation introduces two key amendments: raising the utilisation cap for Business Foreign Currency Accounts (BFCAs) from USD 200,000 to USD 500,000 for investment purposes, and increasing the Personal Foreign Currency Accounts (PFCAs) threshold from USD 20,000 to USD 25,000, with Central Bank oversight to monitor outflows. The Minister contextualised these measures within Sri Lanka's broader economic stabilisation, citing a current account surplus of approximately USD 1.7 billion in 2025, record worker remittances exceeding USD 8 billion, and tourism earnings of USD 3.2 billion as indicators of external sector stability. He argued the calibrated liberalisation approach is data-driven and designed to mobilise a portion of the USD 3.2 billion held in foreign currency accounts to support investment and economic growth, while dismissing concerns about fuel supply disruptions as unfounded.

The Minister of Labour and Deputy Minister of Finance and Planning, acting on behalf of the Prime Minister and Minister of Education, moved a motion seeking parliamentary approval for an Order made under Section 22 of the Foreign Exchange Act, No. 12 of 2017. The Order was originally published in Gazette Extraordinary No. 2467/67 on 18 December 2025 and presented to Parliament on 17 February 2026. The motion notes that Cabinet approval has already been obtained.

## Summary Minister Anil Jayantha responded to an adjournment motion alleging corruption and irregularities in the 2025–2026 coal procurement process, systematically refuting all four allegations raised. He argued that procurement procedures set by the National Procurement Commission were fully followed, that the 2022 COPF/Auditor General guidance was adhered to, that contractual rather than informal mechanisms govern supplier selection, and that delivery timelines were met within agreed arrangements to clear a prior supplier's outstanding cargo. The Minister defended the contract management framework, explaining that quality variations are handled through pre-established penalty clauses and independent inspection by accredited firm Cotecna, and that penalties were applied where triggered. He cautioned that calls for premature contract cancellation were irresponsible, as they lacked a qualifying contractual basis and could expose the government to significant damages claims. He also rejected the Opposition's broader characterisation of systemic corruption, distinguishing off-specification penalties within contractual tolerances from the importation of genuinely substandard goods seen under previous administrations.

Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha clarified the composition of private sector credit growth, noting that credit contracted in 2023 before recovering to 10.7% growth in 2024 and 25.2% in 2025. He acknowledged that approximately 25% of 2025 credit growth was attributable to pawning, leasing, and motor vehicles, but argued that a significant portion of motor vehicle credit reflected long-delayed commercial vehicle purchases with genuine economic impact. He emphasized that roughly 75% of credit growth benefited SMEs and other business sectors, presenting this as consistent with broader macroeconomic growth achieved in 2025 and expressing the government's intention to sustain this trajectory.

## Summary The Minister of Labour and Deputy Minister of Finance and Planning responded to a question raised by Hon. Ravi Karunanayake under Standing Order 27(2) on 18 December 2025, providing detailed data on private sector credit trends in Sri Lanka. Key figures show strong credit growth, with Licensed Commercial Bank lending to the private sector rising 25.2% year-on-year to Rs. 10,212.2 billion by end-2025, while non-bank financial institution credit grew 49.3% to Rs. 2,388.7 billion. Non-performing loan ratios showed general improvement across pawning, leasing, and credit card portfolios between 2023 and 2025, though credit card NPLs at finance companies rose sharply to 29.2% by mid-2025. The Minister noted that the Central Bank has tightened Loan-to-Value ratio caps for motor vehicle credit in response to significant growth in vehicle-backed lending, and that comprehensive credit data is publicly available through the Central Bank's official publications and website.

The Minister of Labour and Deputy Minister of Finance and Planning tabled a written answer on behalf of the Minister of Finance regarding approved foreign investment projects. Between November 2024 and 31 January 2026, the Board of Investment (BOI) approved 78 new projects with an estimated US$541.38 million in foreign investment and 29 expansion projects with an estimated US$419 million, with 45 of these projects having commenced implementation or operations. The Minister noted that implementation timelines vary due to factors such as licensing, environmental approvals, land selection, and investor-specific challenges, and that the BOI continuously coordinates with relevant agencies to expedite progress within established regulatory frameworks.

Minister Anil Jayantha defended the government's procedural compliance, asserting that all actions were taken with proper approval and Cabinet notification, and that the Constitution was not violated. Regarding the IMF Managing Director's visit, he clarified that the primary focus was on Sri Lanka's achieved economic stability, responsible governance, and investor confidence, rather than on reserve accumulation as a precondition for recovery. He concluded that economic fundamentals have stabilized, creating conditions conducive to attracting investment.

## Summary Minister Anil Jayantha responded on behalf of the Prime Minister to a question raised by Hon. Ravi Karunanayake (under Standing Order No. 27(2)) regarding Sri Lanka's 2022 debt standstill declaration. The Minister confirmed that Dr. P. N. Weerasinghe was Central Bank Governor at the time, and that the Monetary Board recommended the debt standstill to the Ministry of Finance on 11 April 2022, which was announced the following day, noting that the Monetary Law Act provided no direct communication channel between the Central Bank and Parliament. The Minister explained that the Central Bank's Monetary Board had previously submitted detailed reports to former Finance Ministers warning of depleted reserves and impending debt servicing difficulties, acting under Sections 64 and 68 of the Monetary Law Act. The debt standstill was initially approved by the former President and Finance Minister on 11 April 2022, subsequently ratified by Cabinet on 16 April 2022, and formally communicated to Parliament on 4 May 2022 by the then Finance Minister, with a one-month grace period still available for reversal at that point. The Minister noted that all subsequent debt restructuring agreements and the IMF Agreement were approved by successive Finance Ministers, and that the Attorney-General had been informed of the Cabinet decision ratifying the interim debt servicing policy.

Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha, speaking on behalf of the Minister of Finance, Economic Stabilization and National Policies, formally requested a two-week extension to provide an answer to an unspecified question before the House.

Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha, delivered concluding remarks emphasising that macroeconomic and price stability are foundational to inclusive and sustainable growth. He noted that the government is working to improve the investment climate through procedural and legal simplification. The Minister highlighted that despite a cyclone shock, the Budget framework was preserved by utilising a supplementary estimate to address urgent needs without undermining fiscal targets, asserting that ongoing reforms position Sri Lanka to achieve sustained higher growth while maintaining inflation control.