Most import restrictions, except for vehicles, to be lifted next month: Semasinghe

State Finance Minister Shehan Semasinghe recently indicated that the remaining import restrictions, excluding

those imposed on vehicle imports, are expected to be lifted by the next month.
The Minister highlighted that the government currently maintains restrictions on nearly 600 HS codes. Given the prevailing economic conditions, there is a potential for the exemption of all import restrictions, with the exception of approximately 270 codes, which are related motor vehicle imports.

Sri Lanka imposed import restrictions in March 2022 in an attempt to conserve and replenish its foreign exchange reserves.
The import restrictions covered a wide range of goods, including vehicles, cosmetics, electronics, and food items. The government also imposed a 100 percent cash margin requirement on the import of certain goods.
However, with the improvements seen in the overall economy, the government has lifted a significant portion of these restrictions.

Sri Lanka has been able to tame inflation which almost hit 70 percent in September last year. As of August, this year, inflation had decelerated to 4 percent.
The country’s foreign reserves, which had plummeted to near-zero levels last year, are being steadily replenished and currently stand at approximately US$ 3.6 billion.
The International Monetary Fund has also indicated the need for Sri Lanka to lift the import restrictions in a phased manner so that the country’s economy can get back on the growth track.