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Open account only for wheat flour until 31 December

06 Nov 2022

  • Trade Ministry says no other items will be exempted
A new import control regulation was issued on Monday (31), granting approval for the importation of wheat flour to Sri Lanka under Open Account Payment Terms until 31 December 2022, according to the Ministry of Trade. Speaking to The Sunday Morning Business, Ministry of Trade Secretary S.T. Kodikara revealed that it had been previously decided that from 31 October 2022, no item other than wheat flour would be permitted to be imported to Sri Lanka under Open Account Payment Terms.  According to him, the exemption for wheat flour was granted considering the prevailing shortage of wheat flour both locally and in the international market.  Explaining further, he stated: “Given the importers’ inability to source wheat flour from India due to restrictions imposed on the export of wheat in India, we obtained Cabinet approval to extend the permitted period for open account trade for wheat flour until 31 December 2022.” He said that following the introduction of the ban on open accounts from 7 June 2022 onwards, a decision had been made to allow approved importers to import essential food items due to the possibility that a sudden ban on open accounts would create a food crisis. Therefore, from 1 July 2022 to 31 August 2022, based on the requirement of the country, importers have received the green light to import certain essential food items and selected essential items, including wheat flour and milk powder, which were permitted to be imported under open accounts until 31 October 2022. However, since the shortage of wheat flour in the local and international markets has persisted, it has been decided to extend the permit for open accounts, allowing importers the opportunity to import wheat flour from far-off regions like Canada and Australia. India decided to ban all wheat exports in June 2022 following low production due to the unusually hot weather. This, together with the fact that the world’s two largest wheat producers Ukraine and Russia are in the midst of war, has created a shortage of wheat in the market.   – By Shenal Fernando  


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