2026-03-03 / Debate: Foreign Exchange Act Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 2026-03-03
## Summary
Deputy Minister Abeysinghe defended the Government's economic management record, contrasting what he described as the National People's Power's structured, resilience-focused economic approach against the previous administrations' failures to secure food, energy, or financial stability, which he argued culminated in the country's bankruptcy. He rejected the Opposition Leader's claim that Sri Lanka cannot meet a USD 3.5 billion debt obligation in 2028 as unfounded, citing improved economic indicators including a better trade balance, USD 751 million growth in remittances, and import cover of approximately 3.8 months. The Deputy Minister announced the approval of a regulation under Section 22 of the 2017 Act raising the Business Foreign Currency Account ceiling for capital transactions from USD 200,000 to USD 500,000 and increasing the Personal Foreign Currency Account limit from USD 20,000 to USD 25,000, framing these measures as tools to facilitate outward investment and business expansion by local entrepreneurs. He concluded by calling for Opposition cooperation in the country's economic development.
Hon. Deputy Speaker, as we proceed with today’s debate, the President presented a clear, scientific explanation of where the country stood and where it is heading. Unfortunately, the Opposition Leader responded with unscientific political rhetoric.
When the National People’s Power designed our economic approach, our theme was a Resilient Economy—because in today’s world, uncertainty is the only certainty. While we cannot control global shocks, we can build an economy that withstands them and moves forward. The Opposition front bench ruled for decades. Did they ensure food security? No. Energy security? No. Financial stability? No. They mismanaged and bankrupted the country.
The Opposition Leader made false claims—for example, that we cannot meet a USD 3.5 billion payment in 2028. That is baseless fear-mongering that creates uncertainty for entrepreneurs. Last year we serviced about USD 3.9 billion in debt. If exports, tourism, remittances and FDI continue to grow, we can meet 2028 obligations. Some in the Opposition prayed for queues to form so they could do politics. They waited one and a half years for such an opportunity.
They now preach scenario and contingency planning. If they had done that in 2015 when they borrowed ISBs at 7%, Sri Lanka would be another Singapore by now. Our vulnerabilities—from cyclone exposure to oil tanks and pipelines—were exposed then. They had neither sound policy nor implementation.
Under current management, all sectors are moving forward. The trade balance has improved; remittances are up by USD 751 million; gross official reserves are rising, with import cover at about 3.8 months. This is a time of rebuilding reserves and moving forward. Attempts to unsettle the economy with statements and media “voice cuts” will not sway the people.
The regulation we approve today under Section 22 of the 2017 Act further supports expansion. For businesses using Business Foreign Currency Accounts for capital transactions abroad, the ceiling is raised from USD 200,000 to USD 500,000. For individuals, the Personal Foreign Currency Account limit increases from USD 20,000 to USD 25,000.
This is how we expand the economy and encourage both local and foreign investors. Our entrepreneurs are already acquiring factories and planting their brands abroad. A Sri Lankan apparel brand is expanding in the US; a biscuit manufacturer acquired a factory overseas. We facilitate this by enabling up to USD 500,000 outward investment for business expansion.
Our goal is a resilient economy—one that returns quickly to equilibrium after shocks. We still have changes to make and large-scale expansion underway. The Government is steering policy with prudence amidst global change, maintaining good relations with all states. There is no need for panic. We have set in motion all necessary measures, and we seek the Opposition’s support to develop Sri Lanka. Thank you.