Business · Sri Lanka Bureau
Harsha committee cautions against overregulation amid growth concerns
Sri Lanka's Public Finance Committee has warned that excessive regulatory measures could deter business activity and pose risks to economic expansion. The committee is focusing on curbing unauthorised foreign exchange outflows while strengthening coordination between financial authorities.
LSN Sri Lanka ·
The Parliamentary Committee on Public Finance has expressed concern that unnecessary regulatory burdens could undermine business confidence and constrain economic growth, even as authorities work to address foreign exchange leakages from the country.
The committee has prioritised investigations into unauthorised outflows of foreign currency and the effectiveness of existing monitoring mechanisms designed to prevent such losses. Officials have identified gaps in oversight procedures that may be contributing to the problem.
Additionally, the committee is examining discrepancies between banking and Customs records related to imports and exports, recognising these data inconsistencies as a significant challenge requiring resolution. Members emphasised the importance of enhanced coordination among relevant agencies to improve data accuracy and identify irregularities more effectively.
The committee's dual focus reflects an attempt to balance regulatory vigilance with business-friendly policies. Officials acknowledged that while strengthening controls over foreign exchange movements is essential for financial stability, the approach must avoid imposing restrictions that could discourage legitimate commercial activity or discourage investor confidence in Sri Lanka's economy.