Sri Lanka to relax open account imports for 8 foods: Minister
ECONOMYNEXT – Sri Lanka may relax open account food imports for eight items, trade minister Nalin Fernando said while discussions were made with the central bank to release containers stuck in the port.
“I had a discussion with the Central Bank Governor about releasing essential food items that were brought into the harbours before the gazette banning open accounts were passed,” Nalin Fernando, Minister for Trade told parliament on June 09.
“180 million dollars from the Indian credit line will be used for releasing essential items.”
Sri Lanka, after banned open accounts from May 20 in an attempt to reduce Unidyal style gross settlements being made for what officials called ‘non-essential’ imports.
This triggered fears of food shortages if banks don’t issue dollars to clear the imports.
However, that decision was revised, open account imports were allowed until June 07 and import licenses on 369 items were removed.
It is estimated that the island needs about 200 to 250 million US dollars a month for food imports according to industry officials.
He says a whole list of items can be brought in using open accounts.
Minister assured the parliament that he will have a discussion with the central bank governor to find the fastest solutions to the problems faced by essential food importers.
The essential times that could be brought under the open accounts are – rice, wheat flour, sugar, potatoes, red dhal, onions, dry chillies, and dry fish.
(Colombo/June12/2022)