Activist group warns over $808mn Balance of Payments discrepancy

The activist group, Dinana Dakuna Collective, has expressed serious concern over recent clarifications provided by the Central Bank of Sri Lanka regarding a discrepancy of USD 808 million recorded under the “errors and omissions” category in the Balance of Payments statement.

Issuing a statement, the group warned that society, Parliament, and financial authorities must pay close attention to the matter.

They acknowledged the technical explanation that “errors and omissions” is a standard accounting adjustment method used globally to reconcile mismatches in data reporting. However, they stressed that it is entirely inappropriate to dismiss such a large figure as merely a “timing delay” or routine data error.

The collective emphasised that when a country’s “Errors and Omissions” figure grows to a significant proportion of GDP — as in this case, a negative USD 808 million — it can no longer be treated as a purely technical entry.

Instead, they argue it should be viewed as a serious macroeconomic warning signal. According to them, this large negative gap clearly indicates substantial foreign exchange leakage, underreporting or misreporting of data, or active illicit capital flight from the country.

The statement adds that in a direct appeal to the Chair of the Committee on Public Finance (COPF), Dr. Harsha de Silva, the collective stressed that Parliament, the Central Bank, and the Treasury must not treat the issue lightly or allow it to be buried.

They also noted that trade misreporting practices — such as over-invoicing exports to retain foreign exchange abroad and under-invoicing imports to evade customs duties — are long-established issues that have affected Sri Lanka’s economy for decades. 

They urge the COPF to exercise its statutory oversight powers to ensure full transparency.