Top economist Dhananath Fernando states that the country’s foreign exchange reserves are not used to facilitate the import of motor vehicles.
When importing any goods to the country, foreign reserves are not used and instead money earned through exports are utilied, Fernando noted.
Speaking during a media briefing, economist Dhananath Fernando noted If imports were to be made using the reserves, Sri Lanka’s reserve volume would never be sufficient.
He said the country’s reserves are roughly around USD 6.6 billion, but Sri Lanka imports goods worth over USD 20 billion annually. Therefore, imports cannot happen through the reserves, Dhananath Fernando asserted.
He added vehicles and other goods are imported using the funds the country earns through exports, the money from the tourism industry services and from foreign remittances.
However, “if necessary, it is possible to carry out imports through the reserves, but there is no requirement to do so”, economist Dhananath Fernando added.
