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| State Finance Minister Ranjith Siyambalapitiya |
State Finance Minister Ranjith Siyambalapitiya yesterday revealed that import restrictions implemented as a measure to address the economic crisis have resulted in substantial savings of Rs. 500 billion for the Government coffers.
Presenting a Gazette announcement before Parliament yesterday, he highlighted the removal of import restrictions on 286 items and the imposition of further restrictions on only 930 items. He also mentioned plans to lift restrictions on an additional 300 items in the immediate future.
Trade balance in the first five months of 2023 was $ 1.9 billion as against $ 3.5 billion a year ago.
Siyambalapitiya explained that the Government had to impose import restrictions on 82% of imported goods due to the economic crisis. However, efforts were made to manage imports systematically, taking into account various requests. The imposition of import restrictions has played a crucial role in addressing the economic challenges faced by the country.
He also emphasised the significant cost savings resulting from the import restrictions. “In 2019, the Government spent $ 1,950 million on imports, but due to the restrictions, the Government was able to save $ 1,698 million by 2022. These savings have contributed to the overall economic recovery efforts and have allowed the Government to allocate resources to priority areas,” he added.
In addition to discussing import restrictions, the State Finance Minister addressed proposals for increasing Government revenue. He highlighted that the recently submitted proposal focuses on increasing revenue without imposing additional tax burdens on the public.
He stated that now, 75% of the raised cash goes to smugglers, highlighting the importance of combating illegal trade operations, whilst noting that an additional 20% of revenue will be generated through regularisation, ensuring that businesses comply with tax regulations. The remaining 5% of revenue will be generated through notifications and other administrative measures.
“These strategies aim to enhance revenue collection and promote transparency in fiscal management,” Siyambalapitiya said.
“The President has approved the proposals for increasing Government revenue,” he said, adding that they are ready to put into effect from today.
“The combination of import restrictions and revenue-raising initiatives reflects the Government’s determination to ensure a fair and sustainable fiscal system that promotes economic growth and supports the welfare of the people,” he explained.
