Foreign Exchange Bill before SC for determination: INVOLVEMENT OF MINISTER IS TO EXERCISE POWERS ANSWERABLE TO PARLIAMENT IN FOREX – AG SAYS

The Attorney General yesterday presented to Supreme Court that the proposed Foreign Exchange Bill for the liberalization is a matter between the government and the Central Bank wherein the Government is principal and the Monetary Board functions as agent in whereas the involvement of the finance minister is to exercise some powers accountable to Parliament.

Four petitions challenging the Bill titled “Foreign Exchange, 2017” was taken up before the Bench comprising Justices Eva Wanasundera, B.p.aluvihare and Prasanna S. Jayawardane.

Senior Deputy Solicitor Arjun Obeysekera appearing for the Attorney General submitted that in implementing the Foreign Exchange Act the government is to liberalize the foreign exchange policy to grant general permission.

He stated that the role of the Finance Minister is to just get involved in the appointment of Governor, Deputy Governor of the Central Bank and members of the Monetary Board.

He contended that none of the provisions of the amended Bill touches the Monetary law and any Financial Acts.

He submitted that under Clause 22 of the Monetary Act, the Central Bank could send its report to the Minister for the government to take action. The Minister takes it to the Cabinet of Ministers and the Cabinet takes it to the Parliament.

He said the Central Bank is the agent of the Government and the Duty of the Monetary Board is to take directions on behalf of the Minister.

He submitted that the Minister can make any regulation and publish in the gazette and the regulation comes into operation but it should be passed by the Parliament within six months and approval of the parliament should be obtained.

Deputy Solicitor General Nerin Pulle who also appeared for the Attorney General submitted that Petitioners made their submission based only on the economic policy of the government.

He also pointed out that no provisions of the impugned Bill impinges on the Constitution.

He, adverting the determination of the Supreme Court, sustained therefore the jurisdiction is restricted and it is the legislators to decide on the statutory piece of enactment.

He stated it is entirely a change of regime to advance the rights of the people and strengthen the sovereignty of the people.

Petitioners inter alia complained that the said Bill gives upper hand to the Finance Minister and deprives the powers of Parliament.

Joint Opposition Parliamentarian Bandula Gunawardane, public interest litigation lawyers N.dharshana Weraduwage and Nagananda Kodituwakku and one more petitioner challenged the said Bill and sought the Special Determination of the Supreme Court.

Weraduwage and Kodituwakku appeared for themselves while Canishka G.witharana appeared for the other two petitions. Senior Deputy Solicitor General Arjun Obeysekara, Deputy Solicitor General Nerin Pulle, State Counsels Anusha Jayatilake and Suren Gnaraj appeared for the Attorney General.