Import controls temporary, committed to an open economy: Mangala

Sri Lanka’s government is committed to further opening up the economy and import controls imposed recently are temporary moves to protect the economy, Minister of Finance and Media Mangala Samaraweera said. 

Speaking at a Retailer's Forum, Samaraweera noted that the recent, rapid depreciation of the rupee is largely due to external factors. 

"The recent depreciation of the rupee was largely due to external factors as the US interest rate hike, trade wars, and rising oil prices, have resulted in global investors taking capital out of emerging and frontier markets," he said.

Samaraweera said that however, from a policy perspective, the government has taken all necessary measures to address the factors that are within the government's control. 

The recent hike in import duty on small cars and the introduction of market-determined fuel prices are key policies to address the two sectors that caused a sharp increase in imports in 2018, he said.

“It was a tsunami of vehicles – we had to take measures to stop this flow,” Samaraweera said. 

 "I must stress that these are temporary measures ", Samaraweera added while noting that the cash margins on vehicle imports and restrictions placed on non-essential imports will be reviewed regularly.