Sri Lanka Puts Import Restrictions On 'Non Essential Items' Like Milk Products & Fruits Amid Forex Shortage

Milk and dairy products, fruits, furniture, cosmetics, wine, footwear and fish. These are amongst the 367 items dubbed ¡®non essential¡¯ by Sri Lanka, leading to the imposition of import restrictions on them.

This latest step seems like another desperate attempt by the crisis-hit nation whose brighter days just don't seem to anywhere be in sight.

Amidst the ongoing shortage of foreign exchange which has been amongst the primary reasons for triggering this economic crisis, Sri Lanka has barred 367 items from import without a valid license.

The import control was notified by a Gazette notification dated March 9th 2022.

Tamil Guardian

Also Read: How Sri Lanka's Economic Crisis Has Led To Used Cars Costing More Than A Luxury Flat

¡®Non Essential Items¡¯ Under Import Restrictions

The notification stated that the import restrictions mostly relate to 367 items, including food items like oranges, chocolates, milk, fish meat, milk and cream, fresh or dried apples, pears, fish filets, buttermilk, curdled milk and cream, yoghurt, butter and other fat and oil derived from milk; dairy spreads, cheese and curd, grapes, etc as per a report in ET.

Any importers who intend to import any goods specified in the Gazette are entitled to have a valid license issued by the Controller General of Imports and Exports Control prior to the date of Bill of Lading: Airway Bill of such importation, the notice said.

While some items have been brought under licensing, some have been subjected to taxes and some under taxes and licensing, the government said, as reported in ET.

The statement said the controls are for a limited period to help stabilize the economy.

Reuters

Dire Need For Foreign Exchange

Recently this week, Sri Lanka¡¯s central bank had taken another big step by devaluing its currency to attract investments and remittances. Even basic necessities are running out of reach for Sri Lankans amidst the crisis.

And this latest step of putting import restrictions on these otherwise essential items, which are now treated as ¡®non essential¡¯, further shows the piling pressure on the Sri Lankan economy and the dire need for foreign exchange.

In barely four months¡¯ time, Sri Lanka has to first repay a $1 billion international sovereign bond maturing in July 2022. But with no major signs of revival and the ongoing Russia-Ukraine war further dwindling the Sri Lankan economy, it remains to be seen how the island nation survives this deep economic crisis.

Also Read: Why RBI May Let Rupee Fall Further Despite Hitting Record Low Mark Against US Dollar

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