CONTROLS ON IMPORT EXPENDITURE TO CONTINUE

10 December 2021 06:56 am Views - 298

• Will make sure food security not affected
• Stresses need to be self sufficient in milk next year to save on foreign exchange   
• If milk powder imports are stopped it will be greatly helpful

Finance Minister Basil Rajapaksa said yesterday the fleets of vehicles and staff of the government institutions would not be extended next and therefore the authorities concerned should manage their affairs with the available resources. The Minister said the country would continue to experience the foreign exchange crisis next year.   

 

Making his remarks at a function, he said the next year would be a year of economic transformation if the annual budget were voted in today. 

He said the current foreign exchange crisis is a phenomena created over the years due to the balance of payment crisis. Elaborating more on the matter, he said Sri Lanka had been spending more on imports than its foreign exchange inflows in terms of export proceeds, remittances and revenue from tourism.   

He said the situation was exacerbated by the pandemic during the last couple of years. “We had to spend foreign exchange, but foreign exchange revenue dwindled further. We used to send 230,000 for foreign employment. It dropped to 53,000 last year. 

This year, with efforts by the Ministers, we managed to send 100, 000. We are planning to send at least 300,000 next year,” he said.   

The Minister stressed that the government is not in a position to dispose of its foreign reserves for the import of animal products next year and therefore it will be vital to be self-sufficient in milk production. “If we can stop milk powder imports, it will be greatly helpful at this crisis time,” he said.   

 

• This year, with efforts made by the Ministers, we managed to send 100,000 people for foreign employment