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Lanka spent under 1 pct of import bill on recently import restricted goods: official
ECONOMYNEXT – Over a period of five years, Sri Lanka spent less than one percent of its import bill on the 327 goods on which import restrictions were recently lifted, an official said. State Minister of Finance Ranjith Siyambalapitiya told reporters on Thursday August 03 that a further 300 items will see their import restrictions lifted in September.
“We’re always talking about negative growth. For economic growth to be positive, for the economy to expand, a country needs free trade, particular free international trade,” said Siyambalapitiya.
In early July, Central Bank Governor Nandalal Weerasinghe said the bank has recommended the relaxation of import controls on 900 items except motor vehicles,
“The decision on how to relax, when to relax, phasing out is a decision of the Finance Minister,” Governor Weerasinghe said speaking to reporters on July 06 after cutting policy rates.
“We have recommended to relax about 900 [items] (sp).”
About 300 items will remain under import controls, made up of motor vehicles and some other items, he said. Relaxing import control will also boost tax revenues, said Weerasinghe.
Under an International Monetary Fund (IMF) programme, June targets were met except for revenues because import duties were much lower than expected.
“That is why we have recommended to the government to relax the import restriction so that we can collect some revenues as well,” Governor Weerasinghe said.
Sri Lanka controlled the imports of over 3,000 items in 2020 after the deployment of macro-economic policy in the form of rate cuts on top of tax cuts blew a hole in the balance of payments.In Sri Lanka imports are controlled after money printing (rate cuts or central bank refinance) trigger forex shortages, further worsening tax collections.
State Minister of Finance Shehan Semasinghe tweeted on June 10 that the relaxation of the restriction will send a strong signal that Sri Lnaka’s economy is open for business and that the country is “back on track”.
“This will infuse the economy and mitigate inflationary effects further and enhance price stability,” he said.
“Imported goods can help moderate prices by providing consumers with options and lower-cost alternatives. We expect the pricing advantage will be passed on to the consumers as fast as possible.
“However, we need to be mindful of the impact on the foreign reserves, exchange rate, balance of payment and mitigate impact on local industries. The government expects every importer to act with responsibility to ensure sustainable growth of the economy,” he said.
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Concessionary priced food packages for new ‘Aswesuma’ applicants from 01st to 13th April
In keeping with the proposal by the President in his 2025 budget, for the provision of a package essential goods at a concessionary price during the Sinhala and Tamil New Year Festival season, it has been planned to provide a food package containing essential food items valued at Rs. 5000/- for only Rs. 2,500/-.
It is expected to select appropriate beneficiaries from among the 812,753 candidates who have submitted new applications for Aswesuma benefits.
Accordingly, the Cabinet of Ministers approved the proposal furnished by the Minister of Trade, Commerce, Food Security and Cooperative Development jointly with the Minister of Agriculture, Livestock, Lands and Irrigation to take necessary steps to provide the food package to the beneficiaries through the Lanka Sathosa outlet network and COOPFED outlets from 01.04.2025 to 13.04.2025
The Cabinet of Ministers have decided as follows considering the resolutions submitted by the President in his capacity as the Minister of Finance, Plan Implementation and Economic Development along with the Minister of Public Administration, Provincial Councils and Local Governments on payment of salaries according to the revised salary scales with effect from 01.04.2025 based on the resolution furnished by the President for revising the salaries of government service by the budget 2025;
• To empower the Secretary to the Ministry of Public Administration, Provincial Councils and Local Governments to issue circular instructions to the the secretaries of all the Ministries, Local Government Secretaries and Heads of Departments in regard to salary revisions of the government service.
• To empower the Secretary to the Ministry of Finance, Plan Implementation and Economic Development to issue circular instructions for state corporations, statutory boards and fully government owned companies and other institutions.
Approval of the Cabinet of Ministers has been granted to amend the Companies Act No. 07 of 2007 for remedying the shortcomings related to the transparency according to the international standards for prevention of money laundering, financing terrorism and other illegal activities.
Accordingly, the draft bill prepared by the Legal Draftsman has been revised as per instructions provided by the Attorney General subject to the special decision of the Supreme Court No. SC/SD/92/2024 and clearance of the Attorney General has been granted for the final draft bill prepared by the Legal Draftsman.
The Cabinet of Ministers granted approval to the resolution furnished by the Minister of Trade, Commerce, Food Safety and Cooperative Development to publish the aforementioned draft bill in the government gazette notification and subsequently submit to the Parliament for its concurrence.
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