2026-03-03 / Debate: Foreign Exchange Act Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 2026-03-03
Hon. Kaveenthiran Kodeeswaran raised concerns about Sri Lanka's foreign exchange sustainability, arguing that current policy measures—including the Central Bank's reliance on high interest rates—are insufficient to secure stable inflows. He highlighted the impact of the Gulf conflict on over one million Sri Lankan migrant workers, questioning what government support would be provided to ease disrupted remittances and financial hardship on their families. He warned that a halt in petroleum supplies could trigger an economic crisis comparable to 2022–2023, urging protection for farmers and fishers, and called for a comprehensive strategy encompassing tourism promotion, sound investment policies, and stronger international diplomacy to build foreign exchange reserves.
Mr. Deputy Speaker, much has been said about foreign exchange. If this country is to earn sustainable foreign exchange, we must boost exports and promote investment. Yet, given current headwinds, we are not taking sufficient steps to secure stable inflows.
The economy’s growth rate has risen from 3 to 4 percent, but the Central Bank’s use of high interest rates to secure revenue or control inflation cannot by itself develop the economy.
Internationally, the Gulf war is creating an abnormal situation. Over a million Sri Lankans who work abroad are affected. They are a primary source of foreign exchange for this country, yet avenues for remitting money to their families are constrained. If remittances are disrupted, families here will suffer economically. What support will the Government provide? How will you ease the financial stress on these families?
The President said today we have sufficient fuel for two to three months, but that we must think of alternatives if the war continues. If petroleum stops coming, the entire economy—from agriculture onward—will be hit, taking us back toward the 2022–2023 paralysis. Farmers and fishers must be protected. Petroleum is essential to rebuild the economy.
Tourism is an easy avenue to earn foreign exchange, so we must genuinely promote it. Many arrivals do not translate into sufficient foreign currency spending. We need a comprehensive plan to lift reserves through tourism and other sectors. Look at our neighbour India’s advances; from Independence to now, Sri Lanka has stagnated. Only through proper international relations and diplomacy, with stable investment promotion and sound planning, can we earn the foreign exchange the country needs.
Thank you.