ECONOMYNEXT – Sri Lanka should continue to control imports to stop goods that can be made in the country in a bid to check the trade deficit, Central Bank’s Director of Economic Research Chandranath Amarasekera said.
“We saw in the recent times un-necessary goods are being imported,” Amarasekara said during a forum at the state information office.
“There are goods that can be made in the country that is better than the foreign ones. I think we can control imports in 2021.”
He said in 2020 imports had fallen faster than the fall of exports.
In 2020, tourism remittances stopped.
The government was also unable to finance the deficit from foreign sources in 2020 and paid back debt on a net basis. Government foreign borrowings are key trigger of imports.
Sri Lanka is now mired in the worst trade controls since the 1970s, when draconian import and exchange controls were imposed. (Colombo/June11/2021)