Tile imports decision revoked due to local biz requests: Cabraal

• Cabraal tells P’ment Govt. policy is to assist local businesses
• Says revocation of decision within hours did not allow anyone to open Letters of Credit through banks
• JVP MP alleges move will assist businesses connected to Govt.

The Government decision to revoke the decision relaxing import restrictions on tiles and ceramic products within a day after making the announcement was prompted by requests from local manufacturers that such a decision would adversely affect them, State Minister Money, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament yesterday.

“Our Government always focuses on balancing economic policies to support local producers, importers and the consumers and hence we decided to suspend the order relaxing tile imports after request from those in the local industry,” Cabraal said.

He was responding to a question raised by JVP leader MP Anura Kumara Dissanayake.

The JVP MP questioned if this was done to allow certain businesses close to the Government to open letters of credit for tile imports and as soon as this was done, revoked the decision.

Cabraal said there was hardly any time for any importer to open letters of credit as a result of the removal of importation restriction. “Emails were sent to all banks and the Department of Customs as soon as the temporary easing of importation restriction was cancelled,” he said.

The State Minister said an inquiry will be made to determine whether anyone had opened letters of credits though any bank.

A gazette notification was issued by Prime Minister and Minister of Finance Mahinda Rajapaksa removing import restrictions on tiles and ceramic wear imports while another gazette notification was issued within hours cancelling the earlier gazette a few days ago.

State Minister Cabraal said a new gazette notification has already been issued creating a win-win situation for importers, local tile producers and consumers.