Rubber products industry calls on Govt. to resolve forex crisis

Tuesday, 11 January 2022 03:29 - - {{hitsCtrl.values.hits}}

The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) in a statement yesterday called on the Government to urgently resolve the current foreign exchange and debt crisis as the industry is witnessing and facing unprecedented pressure from economic issues from multiple fronts of the supply chain.

“We also now witness the hardships faced by the people that are translating into social issues affecting the overall business environment and the country image at large,” SLAMERP said.

It said the debt and forex situation was now affecting day-to-day operations and international supply chains that the export industry was directly dependent and linked to.

“We are also concerned that the livelihoods of our employees and the citizens are severely affected,” the statement.

SLAMERP said the most critical factor was that the Government should allow the market to correct itself and take measures to bring in stability, removing black markets and uncontrolled inflation. Confidence of the business community is also varying and in the eyes of the international community Sri Lanka is now looked upon as an unstable economy.

The current negative sentiments of shortages, power cuts, fuel and gas supply uncertainty and intermediaries and importers finding it difficult to get forex, are sending shock waves and harming the country’s image further.

“Unless Sri Lanka addresses the foreign exchange crisis through debt restructure, we will reach unprecedented economic and social consequences. SLAMERP further believes short term measures are not going to boost our country’s credibility until we put the macroeconomic fundamentals to an acceptable position.

“The rubber industry calls upon the Government to bring in national consensus and resolve the grave economic situation to come out of the current situation. Time has come to look at the needs of the citizens of Sri Lanka as the last thing the country needs is social instability.

“We cannot afford to deprive the basic essentials for the day-to-day lives of the people, currently experienced across many areas and will certainly transform into further deterioration of the situation. It will impact productivity and unrest within the export and production sector if the situation gets worse.

“SLAMERP requests the Government to take a wider industry perspective and consider rescheduling debt to manage the emerging situation and work with organisations such as the IMF and the World Bank that was created by the international community to resolve such hardships faced by countries.”