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Friday Apr 26, 2024
Wednesday, 17 October 2018 00:00 - - {{hitsCtrl.values.hits}}
President Maithripala Sirisena yesterday instructed the Finance Ministry to study current imports and submit a report on which goods could be temporarily restricted as the Government attempts to reduce the decline of the rupee.
The President had issued these instructions at the 20th sessions of the National Economic Council (NEC), which was held at the Presidential Secretariat, the President’s Office said in a statement.
“The NEC deliberated extensively on measures that Sri Lanka should take in the context of challenges arising due to the appreciation of the US dollar. Special attention was paid to restricting the import of non-essential goods as a temporary measure, while encouraging local substitutes,” the statement said. Discussions focused on revising the measures currently in place to restrict the import of non-essential goods.
The President also highlighted the importance of restricting the importation of non-essential polythene products that yield significant environmental concerns and negatively impact local industries. He also pointed out that the country’s prevailing negative balance of trade could be neutralised through prudent measures to revise the import of non-essential items when combined with a proper mechanism to collect the due levies at the point of Customs clearance.
The NEC also discussed the concerns of local manufacturers and traders. As such, the NEC listened to some of the issues raised by importers of sugar to Sri Lanka, who pointed out that they had to incur considerable losses when sugar was sold at the current maximum retail price. However, given the fact that global sugar prices have continuously decreased, the NEC advised the Ministry of Finance and Consumer Affairs Authority to use a proper mechanism to address the grievances of sugar importers.
Local manufacturers of fruit drinks, presenting their concerns to the NEC, sought relief on taxes that were imposed based on the amount of added sugar in fruit drinks. It was agreed that local fruit growers and manufacturers needed to be encouraged and prioritised. As such, it was advised for the NEC to appoint a committee to identify a proper mechanism to support the industry.
It was also proposed that a part of the Eppawala phosphate deposit be used for manufacturing single phosphate as a substitute for triphosphate imported for fertiliser. This measure, it was highlighted, would help Sri Lanka prevent the outflow of important foreign exchange in the future.
The NEC also reviewed Sri Lanka Customs’ present screening system. The NEC emphasised the need to screen all containers instead of the present procedure of random screening at Sri Lanka Customs. The President requested an urgent report on the status of Sri Lanka Customs’ screening capacity.
The Kalu Ganga basin flood control projects that aim to control the floods that mainly affect Ratnapura and Kalutara cities were taken up for discussion at the NEC. The President pointed out that this project for the resilience of the Kalu Ganga basin had been neglected for decades. He also highlighted the need to study the feasibility of transferring excess water from the Kalu Ganga to the North Western and the Northern provinces, to mitigate the adverse effects of climate change. The NEC advised to appoint a committee to carry out a feasibility study on this project.
Ministers Mangala Samaraweera, Rajitha Senarathna, Dr. Sarath Amunugama, Duminda Dissanayake, Mahinda Amaraweera, Mahinda Samarasinghe and Malik Samarawickrama, Secretary to the President Udaya R. Senaviratne, Chief Economist and NEC Secretary-General Prof. Lalith Samarakoon, Finance Ministry Secretary Dr. R.H.S. Samaratunga, Central Bank Senior Deputy Governor Dr. Nandalal Weerasinghe and other officers were present at the session. Local industrialists and traders had also been invited to the session.
