2026-03-03 / Debate: Foreign Exchange Act Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017

Hon. Ravi Karunanayake

2026-03-03

Hon. Ravi Karunanayake highlighted the economic vulnerability stemming from Sri Lanka's dependence on imports (approximately 65% of needs), warning that rupee depreciation significantly raises the national cost structure and that each 1% interest rate increase adds roughly LKR 178 billion in costs. He called for Sri Lanka to pursue its own economic self-assessment and build competitiveness and investment, rather than relying solely on IMF prescriptions. Concluding his remarks, he urged wise and restrained leadership in conflict resolution, noting that escalation has no ceiling, and expressed the broader aspiration of improving living standards for Sri Lankans.

In any case, we import about 65 percent of our needs. When the rupee depreciates on that 65 percent, the national cost structure rises sharply. Every 1 percent increase in interest rates adds roughly LKR 178 billion to our costs. Without merely doing what the IMF prescribes, we need our own self-assessment and forward march. As before, we must build competitiveness and catalyse investment. Madam, I will finish with these words. To start a war, it is very easy. History teaches us that escalation of war has no ceiling and retaliation has no memory. Real leadership is measured not by how hard we strike, but how wisely we stop fighting. I wish that sagacity would be exhibited not only by Sri Lanka but by other countries as well. Ensure that Sri Lankans would have better living standards today than what they had yesterday. Thank you.