Central Bank Has Acted Against Every Government, Says Ravi Karunanayake
21-Jul-2026.
New Democratic Front MP Ravi Karunanayake has claimed that the Central Bank has consistently acted against successive governments, while stressing that strengthening the Sri Lankan Rupee and safeguarding the country's foreign exchange reserves are essential for economic stability.
Speaking during a media interview in Colombo on July 20, Karunanayake said Sri Lanka remained heavily dependent on imports and therefore needed to prioritise strengthening the rupee while protecting its dollar reserves.
"As import expenditure continues to rise, strengthening the value of the rupee against the US dollar should be the country's immediate priority. A weakening rupee increases domestic costs while simultaneously reducing our capacity to meet foreign obligations and eroding foreign exchange reserves," he said.
He argued that import controls were necessary to prevent billions of dollars from leaving the country.
"As an example, instead of allowing the import of 6,000 vehicles at once, restricting imports to around 3,000 vehicles would help maintain the stability of the rupee," he said.
Karunanayake further claimed that excessive vehicle imports had previously resulted in an outflow of between US$3 billion and US$4 billion, causing the exchange rate to depreciate from around Rs.293 to Rs.342 against the US dollar.
"Although the Government argues that vehicle imports generate domestic revenue, the real issue is the substantial outflow of foreign currency," he said.
He added that when he raised the issue in Parliament, it was dismissed as merely reflecting former President Ranil Wickremesinghe's views.
Karunanayake also criticised the Central Bank, alleging that it had failed to impose adequate restrictions on large-scale vehicle imports.
He further argued that granting greater autonomy and independence to the Central Bank during the Wickremesinghe administration had been a policy mistake, as it had limited the Government's ability to intervene when necessary.
"Since the Central Bank was granted greater autonomy, the country's financial management has not proceeded in the right direction. Unless these economic management shortcomings are addressed, the present Government too will face serious setbacks," he said.
