100 per cent cash deposit requirement for L/Cs No reason for price hike of imported items: Bandula

11 September 2021 12:00 am Views - 116

• Country facing worst ever foreign exchange crisis
• Opposition claims Govt. has banned import of 623 items

By Kelum Bandara

Trade Minister Bandula Gunawardana said there is no reason for any price hike of import items subjected to 100 per cent cash deposit margin requirements. 

In a video clip released to the media through the Government Information Department, the Minister said there was false propaganda orchestrated by the opposition that the government had banned the import of 623 items such as home appliances. He said the Central Bank had only increased the cash deposit margin to 100 per cent of the total import value in opening Letters of Credit. “That has been done by the Central Bank to discourage importing such items as a measure for the reduction of pressure on the balance of payment and foreign exchange.

The country is facing the worst ever foreign exchange crisis triggered by the mismanagement of it during the time of the last government, the Easter Sunday attack and the current pandemic. Otherwise, there is no ban on the import of these items, nor has the government increased taxes on them. As a result, we don’t find any reason for a price hike,” he said.