• Importers caution delay to release funds will create shortage, price hikes
• Stakeholders say Trade Minister assured immediate solution 
• CB Chief says banks directed to issue necessary funds

The Essential Food Importers Association yesterday claimed that over 1,000 containers worth $ 25 million were stuck at the Colombo port as banks refused to release foreign exchange to clear the goods.

“We have around 1,200 to 1,300 boxes containing essential food items, and another 500 containers of small importers are stuck at Colombo port. Banks continue to say they do not have sufficient foreign exchange to issue,” the Essential Food Importers Association told the Daily FT.

As per industry stakeholders, around 4,000 containers with essential food items, such as rice, dhal, sugar, onions, potatoes, milk powder and legumes are imported monthly.

“The delay to clear boxes will once again lead to a shortage and price hikes in essential items unnecessarily,” they cautioned.

They said the matter has now become an every 10-day situation and they are seeking for a long-lasting solution to it through regular discussions with the Trade Minister.

“The Minister assured us to intervene and provide a permanent solution immediately to the matter.”

Central Bank Governor Ajith Nivard Cabraal told the Daily FT that the banks had already been directed to issue necessary funds to release the containers.

Last week, Finance Minister Basil Rajapaksa said the economy was facing great difficulties due to the foreign exchange crisis and that drastic measures would have to be taken.

Given the current situation of the country’s foreign reserves, the Minister said the Government would have to curtail imports of milk powder and vehicles, and State sector recruitments. (CdeS).

 

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