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Sri Lanka state to repair old cars amid import controls

ECONOMYNEXT – Sri Lanka’s will repair 4,116 state vehicles and put them back to use Minister Ramesh Pathirana said amid import controls imposed after the central bank printed large volumes of money triggering forex shortages.

“Instead of importing new vehicles we will repair them and put them to use,” Minister Pathirana said.
There were also another 5,588 government cars which are not in a position to be repaired and will be discarded, he said.

Sri Lanka has placed broad controls on imports until January 2020 after the rupee came under pressure again in March and April 2020, amid unprecedented printing of money.

Private credit has turned negative from April to July, taking away pressure on the rupee’s soft-peg with the US dollar.

Sri Lanka has a central bank set up by the Federal Reserve after the Great Depression in the style of several Latin American central banks, which has frequent currency collapses and also sovereign default. (Colombo/Sept05/2020)