Colombo: Sri Lanka has lifted import restrictions on nearly 300 items with immediate effect, the finance ministry announced, in a clear sign that the island nation is slowly but surely emerging from its worst economic crisis in decades.
Last year, Sri Lanka plunged into its worst economic crisis since its independence in 1948 due to plummeting foreign exchange reserves that caused severe shortages of essential items and triggered massive public protests. In April 2022, Sri Lanka declared its international debt default due to the forex crisis.
In August last year, Sri Lanka slapped a ban on the import of 300 consumer items like chocolates, perfumes, and shampoos to tackle its economic woes. Sri Lanka’s economic situation has improved after it secured a $3 billion bailoutpackage from the International Monetary Fund (IMF) in March.
The IMF lifeline helped Sri Lanka bolster its foreign exchange reserves and stabilise the spiralling inflation. “With the economy stabilising, import restrictions on 286 items have been lifted from Friday midnight,” the finance ministry said in a statement. “Restrictions on 928 items will continue, including vehicle imports, which were banned in March 2020,” the statement said. “Imported goods can help moderate prices by providing consumers with options and lower cost alternatives,” Shehan Semasinghe, the minister of state for finance, said.
Sri Lanka’s reserves grew by an impressive 26% to touch $722 million in May, while the currency also rose by 24% this year, according to central bank data.