Import restrictions will ease when exports improve: PBJ

The government yesterday hinted that the currently imposed import restrictions would be eased when the country’s merchandise exports reach the level of US $ 20 billion.

As the country grapples with a widening current account and a balance of payment deficit, Secretary to President Dr. P.B. Jayasundera stated that the government would look at easing the import ban currently imposed across diverse products, when Sri Lanka’s export earning reaches around US $ 20 billion.

According to the former treasury secretary, an improvement in merchandise exports is likely towards the 2024-2025 period.

“Given our challenges, our government was compelled to restrict imports. It has declined to US $ 16 billion now but gradually the country needs to relax. We can realise that when Sri Lanka sees its exports near US $ 20 billion,” said Dr. Jayasundera.

He stressed that an economy of the scale of Sri Lanka can by no means sustain a US $ 10 billion trade deficit per annum. According to him, the national plan to address this imbalance is to raise export earnings to the levels of US $ 20 billion in the next three to four years via diversified agro processing industrial activities.

Meanwhile, commenting on the lacklustre progress of Sri Lanka’s export sector, Dr. Jayasundera stressed the need for renewed efforts to expand and diversify the country’s export basket and markets.