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Wednesday September 27th, 2023

Sri Lanka to lift import controls on 100 items: Minister

ECONOMYNEXT – Sri Lanka plans to lift import controls on 100 items which were banned during forex shortages in the past two years, which was hurting small and medium industries, State Minister for Finance Shehan Semasinghe said.

Sri Lanka had controlled imports of 3,000 denoted by HS codes out of a total of 8,000 during the past two years. The controls were then brought down to 1,000 as they hurt a small and medium industries which depended on inputs.

“By the beginning of next month will be able to lift controls on another 100 items,” Minister Semasinghe told parliament.

“We hope to relax controls on imports that are needed to expand economic activities.”

Sri Lanka’s central bank started to mis-target interest rates to close a so-called output gap (monetary stimulus) from early 2021 and triggered severe forex shortages and the worst currency crisis in its history.

Sri Lanka and countries with reserve collecting central banks which suppress interest rates with liquidity injections tend to impose import controls to continue money printing, instead of correcting its centrally-planned policy rates and liquidity injections or inflationary central bank credit.

“Balance of Payments difficulties cannot be solved by intensifying the rigorous of exchange control and import restrictions; nor by extending the schemes for expanding domestic production to substitute import goods — the so called measures for “economising” on foreign exchange,” classical economist B R Shenoy said in a report to Sri Lanka’s leaders as far back as 1966.

“Intensification of the rigorous of exchange control and import restrictions may reduce the
quantum of import goods flowing into the market.

“The remedy to this problem lies in putting a stop to inflationary financing, not in tampering with the normal course of international trade.”

By June Sri Lanka will present a plan under an International Monetary Fund program giving a timeline to remove import controls, Minister Semasinghe said.

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  1. Dr P Thilakawardhana says:

    Cannabis is just the start, why don’t we have licensed PROSTITUTES? Remember knowing the country and the rouges that run it this is going to be the beginning of the rapid slide of the country to absolute decline, No clear thinking, no clear plan, ABSOLUTE CHAOS.

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  1. Dr P Thilakawardhana says:

    Cannabis is just the start, why don’t we have licensed PROSTITUTES? Remember knowing the country and the rouges that run it this is going to be the beginning of the rapid slide of the country to absolute decline, No clear thinking, no clear plan, ABSOLUTE CHAOS.

Sri Lanka to have country pavilion at COP28 in bid for Climate Justice Forum

ECONOMYNEXT – Sri Lanka’s Cabinet has approved the proposal by its Minister of Environment to maintain a country pavilion during the 28th Conference of Parties (COP28), to display “national level initiatives related to climate change”.

Sri Lankan delegates representing the country’s interests at COP28 in November are to present a proposal to establish a forum, with the aim of raising a “common voice” for the aspirations of developing countries in the global dialogue over climate change.

While attending COP28 to the UN Framework Convention on Climate Change from 30 November to 12 December in Dubai, the Sri Lankan delegation is to present the proposal to the official body requesting permission for Sri Lanka to initiate a “Climate Justice Forum”.

The Cabinet decision said that the purpose of the forum is “raise a common voice regarding the aspirations of developing countries, together with countries that are more likely to be at risk due to climate change”. (Colombo/Sep27/2023)

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Sri Lanka’s sex workers face false charges: Women’s collective

ECONOMYNEXT – Sri Lanka’s sex workers have faced fundamental rights violations including unlawful detention and cruel, inhumane and degrading treatment, a representative of the Abhimani Women’s Collective said at a conference yesterday (26).

“Following their arrest, sex workers frequently experience the infringement of their fundamental rights, including the right to fair treatment, due process and protection from cruel and inhumane treatment,” said a report by the Abhimani Women’s Collective.

Soliciting on the street is currently illegal under section 7 1 (a) of the Vagrants Ordinance which criminalizes ‘any person in and about any public place soliciting any person for the commission of any act or of illicit sexual intercourse or indecency.

This provision along with section 2 of the Brothel’s Ordinance, which criminalizes the aiding and abetting of the management of a brothel, has been used to arrest sex workers in the country.

However, many sex workers claim that they have been presented before court on false charges of drug possession and have been subjected to harassment by both Police and customers.

“When inquiries are made over our arrest, the police say that we have been charged with drug possession,” Sakuni Mayadunna, a sex worker, said.

“Prostitution is not legal in Sri Lanka, so therefore, sex workers will face problems,” Chief of Police in charge of the Child and Women Abuse Prevention, Renuka Jayasundara, said.

“However, every citizen has fundamental rights in this country. We have not authorized the Police to carry out actions such as hitting detainees or not providing a female officer. If those actions happen, a complaint must be filed.”

Attorney-at-Law for the legal aid commission, Ganga Somarathna, said that the legal aid commission provides legal support for such victims whose income is below 45,000 rupees and also for women and children. (Colombo/Sep27/2023)

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Sri Lanka to introduce social security system: minister

ECONOMYNEXT – Sri Lanka’s Labour minister has said that they are set to introduce a comprehensive national social security system, covering all workers.

“The system will address the weaknesses of the current system and provide much-needed support to workers and their families,” Manusha Nanayakkara, Minister of Labour and Foreign Employment said on X (formerly known as Twitter).
He did not specify the details.

Nanayakkara also spoke of the need for robust social security when he met with exporters last week to discuss labor law reforms, boosting female workforce participation and attracting FDI.

Sri Lanka plans to reform labour laws for an export-oriented economy.

The pandemic and the economic crisis highlighted the need to improve the coverage of social security.

Studies have shown that Sri Lanka’s women are kept out of formal employment by childcare, elderly care and housework, as day care and elderly homes are either too expensive or too few.

The government imposed a Social Security Contribution Levy to increase its revenue last year. (Colombo/Sep27/2023)

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