Nawaloka Polysacks (Private) Limited vs Mrs. D. R. Karunaratne et al. – CA WRIT APPLICATION NO. 401/2018-2023

In the case between Nawaloka Polysacks (Private) Limited, H. K. Upali Dharmadasa and others (Petitioners) and Mrs. D.R. Karunaratne (Director, Department of Foreign Exchange, Central Bank of Sri Lanka) and others (Respondents), the court addressed whether a disputed transaction qualified as a “foreign exchange transaction” under section 10(1) of the Foreign Exchange Act No. 12 of 2017 or constituted merely a “financial matter” not requiring investigation. The court held that sufficient grounds existed to treat the transaction as involving foreign exchange, thus warranting further inquiry, and directed that notice be issued to the respondents for full consideration. The decision underscored the principle that statutory language and procedural requirements must be carefully interpreted and f