2026-03-03 / Debate: Foreign Exchange Act Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 2026-03-03
## Summary
Minister Handunnetti spoke in support of a regulation increasing outward payment limits through foreign currency accounts, raising the ceiling for resident businesses from USD 200,000 to USD 500,000 and for individuals to USD 25,000 for permissible transactions. He framed this measure as evidence of Sri Lanka's economic recovery and stability, contrasting current conditions with the foreign exchange crisis, import bans, and loss of market access experienced eighteen months prior. The Minister cited supporting indicators including 2025 export earnings of USD 17.2 billion, 13.3 percent export growth in January 2026, a major multinational investment delegation to his Ministry, and ongoing transparent PPP initiatives for Kahatagaha Graphite and Eppawala rock phosphate. He also acknowledged external risks, including regional conflict and the Ditta cyclone, but argued the Government was proceeding with its policy framework through calibrated, temporary adjustments rather than using such events as a pretext to restrict economic liberalisation.
Mr. Deputy Speaker, before turning to the subject, let me note that Mr. Ranjan Gunawardena, who served this Chamber for 39 years since 1986, retired on 1 March. He was a friend to all Members. We wish him a happy retirement.
On today’s Regulation: easing the limits on outward payments through foreign currency accounts is an important signal of our economic and political stability. Eighteen months ago we had import bans, vehicle bans, a forex crisis and loss of market access. Today, we can allow resident businesses to increase outward payments from USD 200,000 to USD 500,000, and persons to USD 25,000, for permissible transactions. This says to the world: we are operating normally, with confidence in our forex position.
Economic stability rests on political stability. Investors and entrepreneurs now transact without political strings or uncertainty. The private sector is partnering Government because they trust that taxes fund public goods—expressways, water and basic infrastructure—not a few families.
Only days ago, through the Foreign Ministry with support from Japan, over 40 senior executives from multinational companies visited our Industry Ministry—the largest such delegation in about a decade. Countries beyond India and China are eyeing Sri Lanka. We have called for PPPs for Kahatagaha Graphite; and invited proposals to produce SSP from Eppawala rock phosphate—through public advertisements, not in secret. Every Ministry posts these notices on its websites. That is the transparent climate we have created.
Income is returning through tourism, remittances—including from our diaspora—and exports, which in 2025 reached USD 17.2 billion. Our monthly target this year is 10 percent export growth; in January we achieved about 13.3 percent despite global turbulence. Even the “Ditta” cyclone did not significantly hit tea, rubber or apparel value addition, much of which occurs along the Kelani basin.
We now increase outward payment limits because we trust that foreign exchange will flow back as the economy expands. Even when many countries constrained outflows, we made a bold, calibrated choice to open up responsibly—such as restarting vehicle imports within a defined envelope.
People showed maturity in recent fuel queues; many themselves questioned why they had joined queues, and realised panic was unnecessary. We do not want a third world war anywhere; we know from 30 years of conflict how devastating war is. We oppose war in any country.
If those now decrying instability were in power, they would have used the Middle East strikes as a pretext to block this Regulation. We are not doing that. We are assessing external risks and proceeding according to our policy framework, making temporary adjustments as needed—just as we did for the cyclone—without losing direction.
We will not misuse our parliamentary majority. These relaxations will help those who earn foreign exchange to reinvest, strengthen markets and consolidate political and economic stability. There is no cause for public alarm. We are moving forward, in harmony with our people, by taking yet another practical step for our forex-earning business community.
Thank you, Mr. Deputy Speaker.