{
  "id": 11064345,
  "title": "Harsha’s committee warns unnecessary regulations could discourage businesses and create a risk of hindering economic growth",
  "url": "https://urgent.news/2026/10/01/harshas-committee-warns-unnecessary-regulations-could-discourage",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T00:00:53.000Z",
  "source": {
    "name": "The Island Sri Lanka",
    "slug": "the-island-sri-lanka",
    "url": "http://island.lk/harshas-committee-warns-unnecessary-regulations-could-discourage-businesses-and-create-a-risk-of-hindering-economic-growth/"
  },
  "original_language": "en",
  "account": "The Committee on Public Finance held a discussion on the potential impact of foreign exchange regulations on businesses and the economy. The meeting, chaired by SJB MP Dr. Harsha de Silva, brought together officials from various government departments and members of Parliament to examine the provisions of Foreign Exchange Regulations Nos. 01 and 02 of 2026, as well as an Order issued under Section 22 of the Foreign Exchange Act.\n\nDeputy Ministers and MPs discussed the rules governing foreign investments by Sri Lankan residents, the sectors eligible for such investments, and restrictions on transferring capital overseas. Attention was given to the opportunities for Sri Lankan companies to expand their operations abroad and the financial support required for this expansion.\n\nThe Committee also looked into the procedures and restrictions for emigrants transferring assets overseas under the Emigrant’s Allowance and the remittance of current income, such as rental income, interest, and dividends. Officials from the Central Bank briefed the Committee on temporary restrictions on foreign exchange outflows, which are dependent on the country's economic conditions and the need to protect foreign exchange reserves. They also mentioned the potential for gradually easing these restrictions as the economy improves.\n\nThe discussion focused on the importance of providing facilities for local businesses to expand operations in international markets, as well as the need to prevent the misuse of foreign exchange. Committee members warned that imposing unnecessary regulations could discourage businesses and potentially hinder economic growth. The Committee questioned the rationale behind the USD 2 million limit in the Regulations being reduced to USD 0.75 million in the Order for listed companies, and USD 0.2 million for non-listed companies. Officials from the Department of Foreign Exchange explained that the reduced limit would apply temporarily, with consideration given to further relaxation in 2027. They noted that foreign exchange exceeding these limits could be converted upon approval from the Monetary Board of the Central Bank of Sri Lanka, based on the company's balance sheet.",
  "summary": "The Committee on Public Finance focused on investigations into the unauthorised outflow of foreign exchange from the country and the monitoring mechanisms in place in this regard. The Committee also discussed measures taken to minimise discrepancies between banking and Customs data relating to imports and exports, along with the need to strengthen coordination among relevant […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}