In a positive development for Sri Lanka’s economy, the Central Bank has announced that additional import relaxations are anticipated in the near future. This announcement comes in the wake of notable improvements in the country’s balance of payments conditions. With increased foreign exchange (forex) flows and a boost in market sentiments, the Sri Lanka rupee has experienced a remarkable appreciation of approximately 19% against the US dollar since the beginning of the year.
Sri Lanka government relaxed import restrictions related to 286 HS codes with effect from 09 June 2023 and further relaxations of restrictions on selected items are expected soon. This relaxation of import restrictions is not expected to exert large depreciation pressures on the exchange rate against the backdrop of expected foreign exchange inflows to the economy.
Import relaxations are expected to have a significant impact on various sectors, including manufacturing, construction, and services.
While the exact details and timeline of the forthcoming import relaxations are yet to be announced, this positive development bodes well for Sri Lanka’s economic recovery.