• Will ease gradually, says Trade Min.

The relaxation of the import restrictions imposed by the Government last year is not part of the requirements imposed by the International Monetary Fund (IMF) as part of its Extended Fund Facility (EFF) loan agreement with Sri Lanka, the Ministry of Trade reveals.

Speaking to The Sunday Morning Business, Ministry of Trade, Commerce, and Food Security Secretary A.M.P.M.B. Atapattu stated that the IMF had not requested Sri Lanka to relax the import restrictions imposed last year due to the foreign exchange liquidity crisis in the country. 

However, he stated that regardless of the absence of such an obligation on Sri Lanka, steps would be taken to gradually relax the import restrictions as the pressure on the exchange rate subsided.

“We imposed these import restrictions due to the foreign currency shortage. As the situation improves, we must gradually relax these import restrictions, because if Sri Lanka is going to take part in international trade, restrictions must be relaxed both ways. This will be an international decision,” he stated.

He stated that he expected steps to be taken in the near future to relax these import restrictions and that such a process would be facilitated by the preparation of priority lists by the Ministry of Finance.

Speaking to The Sunday Morning Business, Treasury Deputy Secretary R.M.P. Rathnayake revealed that the preparation of the priority lists would be done on the recommendations made by the Ministry of Trade, Commerce, and Food Security through a collaborative process.

However, he stated that no steps had yet been taken to prepare the requisite priority steps for the relaxation of import restrictions and that such a process would most likely commence only after the Executive Board of the IMF approved the EFF.