Import restrictions on vehicles to continue

The Central Bank of Sri Lanka (CBSL) says restrictions on non-essential imports including vehicles will remain in place until the balance of payment issues are resolved.

CBSL Governor Prof. W.D. Lakshman noted that the government’s interest and determination to move away from the heavy dependency on imports are significant for long-term policy approach. However, there could be some adverse impacts in the short run, he said further.

The governor’s remarks came during a press conference held yesterday (February 12) to announce recent economic policies.

There are also many clear signs of domestic industrial investment picking up, Prof. Lakshman added.

He further responded to the negative press reports on the country’s economy, revealing that 5.5% to 6% growth is expected this year due to a host of timely government measures.

CBSL governor explained a combination of factors including vaccine optimism, policy directions and decision such as import restrictions and positive interest rates have given key sectors enough relief to surge ahead this year.

The pandemic-hit tourism sector is now picking up with various incentives that have been provided and the Information Communication sector is likely to generate foreign exchange in the time to come, he elaborated.

“There is also the expected global recovery,” Prof. Lakshman said adding that the IMF is predicting a 5.5% of global growth. He noted that the base effect will help Sri Lanka achieve higher growth rate by the end of this year as the country started off from a negative growth process in the previous year.