Ariyaseela Wickremenayake who represented the group had said 'foreign exchange' was squandered on importing a million tonnes of wheat a year, the report said.
Foreign exchange shortages are not related to imports, but are caused by contradictory monetary policy of 'printing' domestic money and trying to keep a fixed exchange rate at the same time.
Foreign exchange shortages and high inflation started in Sri Lanka after the creation of a central bank in 1950, with money printing powers, after abolishing earlier monetary arrangement (currency board) that kept the exchange rate fixed from 1885.
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Instead of changing the monetary policy, a fascist-nationalists 'import substitution' autarky gained ground in post-independent Sri Lanka to 'save' foreign exchange.
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