In mid-April, Sri Lanka announced its international debt default due to the foreign exchange crisis. (file)
Colombo:
The cash-strapped Sri Lankan government has banned imports of 300 consumer goods such as chocolates, perfumes and shampoos until further notice, as the island nation tries to deal with its worst economic crisis triggered by acute shortage of foreign exchange. Was.
Sri Lanka is going through its worst economic crisis since its independence in 1948. The worsening foreign exchange crisis led to shortages of essential commodities, triggering massive public protests since the beginning of this year, which led to the overthrow of the Gotabaya Rajapaksa government last month.
In a special notification issued by the Sri Lankan Ministry of Finance, a total of 300 items were banned, including chocolates, perfumes, wristwatches, telephones, pressure cookers, air conditioners, musical instruments, alcoholic and non-alcoholic beverages, among many other products. ,
“The import ban on a wide range of consumer goods from food to machinery has come into force with immediate effect on 22nd August under the Import and Export Control Rules,” the notification said.
President Ranil Wickremesinghe, in his capacity as Minister of Finance, Economic Stabilization and National Policy, issued new regulations suspending the import of a plethora of goods, through an extraordinary gazette, from August 23, 2022 until further notice.
However, if these items are shipped before 23 August and reach the country before 14 September, they will still be allowed.
In mid-April, Sri Lanka announced its international debt default due to the foreign exchange crisis.
The country’s foreign exchange reserves have fallen to a record low with dollar payments for essential imports including food, medicine and fuel – millions unable to feed their families, fuel their cars or access basic medicine.
The island nation is desperate for an International Monetary Fund (IMF) bailout and talks for an employee-level agreement begin here on Wednesday.
Sri Lanka’s central bank governor Nandlal Weerasinghe has expressed the hope that the IMF facility will be made available by the end of the year.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)