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Asian Tribune is published by E-LANKA MEDIA(PVT)Ltd. Vol. 20 No. 101

Sri Lanka's exports revenue had overtaken the imports revenue for the first time

By Manjari Peiris
Colombo, 11 July, (ASiantribune.com):

Cabinet spokesman, and Minister Dr. Bandula Gunawardena stated in a media briefing that the President Gotabaya Rajapaksa briefed the Cabinet on Wednesday on the success of the economic fundamentals adopted to face the challenges posed by the COVID 19 pandemic. Accordingly Sri Lanka's export revenue had overtaken the imports revenue for the first time since the open economy was introduced in 1977.

The Minister added that in June, Sri Lanka's export revenue has topped US$ 1,020 million while US$ 961 million has been spent on imports, saving US$ 59 million after four decades.

The Minister attributed this success due to imposition of import restrictions imposed soon after the President Rajapaksa assumed presidency in November last year. The present government compressed import of certain items such as spices, fruits which could be produced locally. We may recall how the previous government issued permits to import kites, vesak lanterns, candles, toys, spices, pepper and even cashew without concerning or restricting draining of foreign reserves. Thus uncontrolled imports had contributed to rapid depreciation of the rupee against the dollar which resulted in rupee devaluation against the dollar to Rs. 180 by 2020 from Rs. 131 in 2014.

"The main objective of import restriction was to increase foreign reserves and appreciate the rupee value against the dollar." he said.

"Despite the global recession brought about by the COVID 19 pandemic, Sri Lanka has been able to keep the rupee around Rs. 180 against the dollar and increase exports than imports. This will help to bring down the cost of living. President Rajapaksa is of the view that restriction of import of non-essential and luxurious goods has begun to pay dividends." the Minister explained.

- Asian Tribune -

 Minister Dr. Bandula Gunawardena  - Cabinet Spokesperson
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