2026-03-03 / Debate: Foreign Exchange Act Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 2026-03-03
## Summary
Hon. Thilanka U. Gamage spoke in support of a regulation under the **Foreign Exchange Act, No. 12 of 2017**, arguing that it reflects tangible economic stabilisation achieved by the current government. He cited key fiscal indicators from 2025 as evidence of recovery, including tax revenue reaching 15.8% of GDP (against a target of 15.3%), a budget deficit reduced to approximately 2.4% of GDP, a primary surplus of around 5.6%, and interest rates brought down from 30–35% to single digits.
The speaker outlined the specific regulatory changes under debate: raising the capital transaction ceiling for **Business Foreign Currency Accounts** from USD 200,000 to USD 500,000, and increasing the limit for **Personal Foreign Currency Accounts** from USD 20,000 to USD 25,000, providing greater flexibility for overseas investment and personal transactions. He attributed these relaxations to improved balance of payments conditions, rebuilt foreign reserves, and stronger import cover. The speech also defended the government against Opposition criticism, characterising Opposition arguments as politically motivated attempts to undermine public confidence in the economic recovery.
Hon. Deputy Chairperson, as we debate this regulation under the Foreign Exchange Act, No. 12 of 2017, let me note that the President today explained clearly the current situation domestically and globally. The Opposition complains he did not say what they wanted. If they wanted to say those things, they should be in Government. After 2020 our economy kept falling; by 2024 the country was declared bankrupt. We took over a country collapsed on every economic and political indicator and are lifting those indicators step by step. International institutions and leaders acknowledge that Sri Lanka is steadily emerging from crisis and returning to real growth.
The Opposition tries to create uncertainty to sow doubt and seize power. But in 2025 we changed the fundamentals. Expected tax revenue was 15.3% of GDP; we achieved and exceeded it to 15.8%. Total revenue rose to 17.2%. The budget deficit was reduced to around 2.4% of GDP. These demonstrate restored stability.
The primary balance—excluding interest payments—has recorded a surplus of about 5.6%, a major achievement. Interest rates, once at 30–35%, have been brought to single digits. Inflation too has been brought down. We have stabilized the economy.
On the balance of payments, the current account, capital account and financial account have improved, with exports higher. Even if vehicles are allowed and we spend more, we have steered clear of a BOP crisis, rebuilt reserves and improved import cover. Hence today’s amendment.
Specifically, for businesses using Business Foreign Currency Accounts for capital transactions abroad, the ceiling is relaxed from USD 200,000 to USD 500,000—allowing investment, lending or settling obligations abroad. For Personal Foreign Currency Accounts, the individual capital transaction limit rises from USD 20,000 to USD 25,000, giving residents more flexibility. These are signs that we are moving out of crisis—now the economy has life again. Some still try to create mistrust.
The President outlined our preparedness for global shocks. We have never had a leader with such a vision. We can overcome these challenges and move forward. With corruption curbed, Sri Lanka has climbed global rankings. We can stabilize the economy and create an investment-friendly environment. In a few years, this will lift people’s living standards and create a more prosperous nation. Thank you, Hon. Deputy Chairperson.