Hon. Wijesiri Basnayake

Hon. Deputy Speaker, today we debate a regulation under the Foreign Exchange Act, No. 12 of 2017, which replaced the Exchange Control Act, No. 27 of 1953. The main objectives are to make necessary provisions to promote and regulate foreign exchange and to ensure accountability in that regard. In recent times our foreign exchange reserves came under stress. As the Central Bank recommended, at various times our financial stability was not assured. To ensure stability, measures were taken to limit foreign exchange outflows. Today we discuss, under Section 22 of Act No. 12 of 2017, the approval of a new regulation—under the National People’s Power Government. This comes at a time when the economy is stabilizing and moving forward. Improving conditions in the foreign exchange market are essential for our businesses. We must enable investments abroad and business expansion. Through this regulation, we relax restrictions on using Business Foreign Currency Accounts for capital transactions, raising the limit from USD 200,000 to USD 500,000. Outward Investment Accounts funded in rupees for residents—and capital transactions by resident individuals—were suspended for a long period. Those too are being eased. For Personal Foreign Currency Accounts used by individuals for capital transactions, the limit is increased from USD 20,000 to USD 25,000. The economy is stabilizing and now moving towards growth. A country’s economy rests on a few key variables: political, economic and social stability. In 2025 our Government ensured sound public financial management and established zero tolerance for corruption; from the humblest to the President, the law applies equally. Revenue targets at Inland Revenue, Sri Lanka Customs and Excise were all achieved, and we mobilized trillions of rupees. We have set aside Rs. 500 billion—without borrowing even a cent—to assist people affected by the “Dicha” cyclone. When the Opposition proposed changing the 2026 Budget, prudent management enabled us to fund urgent relief instead. In 2025 we made major capital investments for the people—on education, health, expressways, transport, industry, entrepreneurship and trade—allocating around Rs. 1.4 trillion, and similar capital outlays this year. We managed revenues and expenditures properly, and delivered good governance. As a result, in 2025 the economy grew by 4.8% in the first quarter and 4.9% in the second; the third quarter was around 5.2%. We maintained higher growth, reduced interest rates from around 30% to single digits, and gave industry the credit relief they needed. Inflation has been brought down to a 2–5% band and managed well. We have created stability so that entrepreneurs and investors can access the funds they need. What does the Opposition do? They try to create panic like “a bel fruit falling on a palmyrah leaf”—but they cannot scare or mislead the people. We ask the people to help us ensure the success of the NPP Government’s economic programme. We will deliver the prosperity, relief and better living standards we promised. Thank you.