19 April 2023 04:15 am Views - 4220
State Minister of Finance Ranjith Siyambalapitiya yesterday said that measures would be taken to further relax import restrictions on many other goods in the future.
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Ranjith Siyambalapitiya |
The minister said that it would also be a step towards achieving the revenue target of Sri Lanka Customs.
He said this during a review meeting of the annual income goals of Sri Lanka Customs yesterday.
Sri Lanka Customs has been able to generate 12 percent less than the Rs.270 billion target set for the first quarter of this year.
Siyambalapitiya identified restrictions on certain imports as key reason for the revenue shortfall.
Sri Lanka banned the importation of 485 items in 2021 and 750 items in 2022 amid the severe foreign exchange crunch the country faced.
However, during the latter part of last year, import restrictions on over 700 items were relaxed.
According to the International Monetary Fund (IMF), Sri Lanka is expected to relax the remaining import restrictions in a phased-out manner. However, some have cautioned that relaxation of import controls could reignite pressure on the country’s foreign exchange front.
The rupee has been gaining against the dollar in recent months due to a multitude of reasons, including Sri Lanka securing an IMF programme and the increase in dollar inflows to the country.
However, State Minister Siyambalapitiya said the rupee appreciation was among the reasons why Sri Lanka Customs couldn’t achieve its revenue target.
He said the further relaxation to import controls will be carried out in consultation with the Economic Research Department of the Central Bank.