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 Arun Hemachandra defended the Government's economic management, attributing a new regulation to improved economic and foreign exchange stability achieved over the past 18 months, contrasting this with the severe economic crisis of two to three years prior. He alleged that recent fuel supply disruptions were artificially manufactured by Opposition-linked entities, citing a specific case in Gomarankadawala where an Opposition-run cooperative petrol shed had not placed its supply order, and argued the public had rejected attempts to destabilise confidence in the Government.
Addressing the ongoing Middle East crisis, he outlined the Foreign Ministry's response measures, including the activation of embassy hotlines, establishment of a ministerial operations centre, coordination with agencies such as IOM, and the issuance of two formal statements on 28 February 2026 calling for restraint and de-escalation and providing consular guidance. He reported that two Sri Lankan nationals had sustained injuries but had since returned home following treatment.
Thank you, Hon. Presiding Member.
This regulation reflects the results of about a year and a half of governance — a measure we can take only because economic and foreign exchange stability is returning. We all know the dire situation two to three years ago, when reserves collapsed and we faced fuel and gas queues. Some now try to treat any small disruption as if it were those days again.
A few days ago an Hon. Member claimed the public have no faith in this Government. Yet, if people did not have confidence, despite all attempts to manufacture queues and crises, those efforts would have succeeded — but they did not. For example, in Trincomalee District, examining the order lists, we found that at Gomarankadawala a petrol shed had not even placed its order — it was run by an Opposition cooperative. These are artificial disruptions aimed at embarrassing the Government, but the public did not buy it; queues have eased and normalcy restored.
On the allegation that the President called the country a “pawnshop”: he did not insult the country; he criticised the conduct of past Governments. The British left us a railway and storage tanks; we failed to expand or modernise them. In the last 76 years, too many things were not done; in the last 18 months we have begun to do them. We are rebuilding rapidly.
Our Foreign Ministry, Foreign Employment and Tourism portfolio has worked around the clock these past days. We activated hotlines; all our missions — embassies, high commissions and consulates — and our Consular Affairs Division are fully engaged. Our priority, wherever crises occur, is the safety of Sri Lankan citizens. We are relieved that, so far, only two Sri Lankans suffered injuries and both have returned home after treatment.
We issued two statements on 28 February 2026: “Sri Lanka Calls for Utmost Restraint and Immediate De-escalation in the Middle East,” and a “Situation in the Middle East” advisory including consular and foreign employment guidance. We have also set up an operations centre at the Ministry and are in discussions with agencies like IOM in case the situation escalates. While preparing for the worst, we remain hopeful of de-escalation, as the President said. The key is sound management — free of corruption — and that is what we are providing.
Placed in the Library.