Govt. pledges minimum disruptions from import controls

Saturday, 4 April 2020 00:00 - - {{hitsCtrl.values.hits}}

Says controls will be limited to non-essentials
Calls on traders and public not to be misled
Fuel, essential food, medicine and intermediate goods for exports will continue uninterrupted
Requests exporters to contact EDB if they face import issues
Insists CB doing what it can to limit rupee depreciation, other countries
facing same challenge

The Government yesterday said it would implement restrictions on imports judiciously and ensure minimum disruptions to the economy, which is already struggling due to upheavals caused by COVID-19.

Cabinet Spokesman Bandula Gunawardena speaking at a press conference said many people had misunderstood the announcement by the Government on the restriction of imports, which had triggered panic among importers of essential goods.

Traders had flocked to the Manning Market on Friday morning, attempting to buy larger stocks of goods, under the impression that there would be a shortage. Many had also withdrawn additional cash with the expectation of buying goods wholesale to store in their respective locations to be sold later.

Gunawardena emphasised that while the Government had taken steps to reduce imports of vehicles and other non-essential goods, it was nonetheless not going to take steps to impact necessary imports including fuel, medicine, essential goods and intermediate goods needed by exporters.

“At a point when the Government is in need of more foreign exchange, there is no logic in limiting imports needed as raw material for exports. Such value addition is important and if any exporters find it difficult to access what they need, we request them to get in touch with the Export Development Board (EDB) immediately,” he said.

The Cabinet Spokesman reiterated Government plans to expand the agriculture industry and introduce home gardening to more families. He also said in the medium term more efforts would be taken to resolve issues that the agriculture and livestock industries had faced. However, he acknowledged that this would not mean that imports could be stopped completely and that the Sri Lankan economy was a complex one.

Responding to concerns on the rapid depreciation of the rupee, Gunawardena conceded it was a concern but pointed out similar currency depreciation was seen in other parts of the world due to the COVID-19 outbreak and Sri Lanka would not be exempted.

“The Central Bank is doing all it can to keep the currency at a reasonable level and prevent a steep depreciation. The Government is concerned about it but this is seen in other countries as well,” he said.