FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post

Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» ලාභ ගන්න කොටස් වලින් මේක සම්පූර්ණයෙන්ම කියවන්න
by D.G.Dayaratne Today at 6:20 pm

» EXPOLANKA HOLDINGS PLC Interim Financial Statements quarter ended 30th June 2021
by cseguide Today at 6:02 pm

» Shares to Buy
by Niwa Today at 12:59 pm

» Successful investment strategies require an understanding of the forces of stock market nature, and disciplined rules of portfolio management.
by Asoka Samarakone Yesterday at 9:12 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Niwa Yesterday at 8:53 pm

» Directors' Dealings today
by SAGA Yesterday at 6:02 pm

» Top Foreign Trading today
by SAGA Yesterday at 5:59 pm

» CHEVRON LUBRICANTS LANKA PLC (LLUB.N0000)
by Antonym Yesterday at 5:37 pm

» Boga unusual Collection....
by Wickyz Fri Jul 30, 2021 1:14 pm

» MILLENNIUM HOUSING DEVELOPERS PLC (MHDL.N0000)
by jehan008 Fri Jul 30, 2021 1:11 pm

» Sri Lanka FOB prices for black tea highest in the world
by samaritan Fri Jul 30, 2021 12:18 pm

» DPL Take over
by Vishwanarth Fri Jul 30, 2021 12:12 pm

» HVA FOODS PLC (HVA.N0000)
by samaritan Fri Jul 30, 2021 11:02 am

» INDUSTRIAL ASPHALTS (CEYLON) PLC (ASPH.N0000)
by dayandacool Fri Jul 30, 2021 10:09 am

» CITIZENS DEVELOPMENT BUSINESS FINANCE PLC(CDB.N0000)
by engineer Fri Jul 30, 2021 7:06 am

» RENUKA CAPITAL PLC . KZOO.N
by Pbv Fri Jul 30, 2021 12:22 am

» What will happen to AMF¿??????
by Tissa Thu Jul 29, 2021 11:46 pm

» Expert view on AMF??
by Tissa Thu Jul 29, 2021 10:12 pm

» Sell EXPO Buy EDEN sentiment changed to Exit EXPO Enter EDEN
by Bakkabwoi Thu Jul 29, 2021 8:57 pm

» What are the short term profit stocks you are planning to buy on this Monday? (Only honest ppl please)
by Hope123 Thu Jul 29, 2021 7:04 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » TODAY NEWS - Import restrictions relaxed to boost growth

TODAY NEWS - Import restrictions relaxed to boost growth

4 posters

Go down  Message [Page 1 of 1]

ddrperera


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
GOOD NEWS TO LEADING  FINANCE SECTOR COMPANIES 
PLC /LFIN/CFIN

LEADING BANKS
HNB /COMB/SAMP

Kevinmikegrit likes this post

DanceOfBoons

DanceOfBoons
Senior Equity Analytic
Senior Equity Analytic
Can you share that news link?

samaritan


Moderator
Moderator
There is no decision taken by the govt with regards to this, its a request made by certain business segments. 
In my opinion if govt relaxes import restrictions the rupee will depreciate and interest rates will rise.

ANC will not be in agreement to this i am sure!


_________________




The biggest risk in life is not taking any risk at all.

ddrperera


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@samaritan wrote:There is no decision taken by the govt with regards to this, its a request made by certain business segments. 
In my opinion if govt relaxes import restrictions the rupee will depreciate and interest rates will rise.

ANC will not be in agreement to this i am sure!
A top government official said the Government was aware of the need to relax the current import control regulations. He further stated that the Government has received a negative response from local industrialists as well as international organisations in this regard.
According to him, these import restrictions were not a decision taken by the Government to embarrass the people. The Government is now focusing on easing these import control regulations on a logical and scientific basis, he said.
The export economy represents only 10 per cent of Sri Lanka’s GDP. Therefore 90% of our economy is dependent on imports. The Government introduced these restrictions a few months ago to control the outflow of foreign exchange.
Meanwhile, economic experts said that the Government should take steps to ease these import restrictions at least from the end of the first quarter of next year.
They were confident that the dollar will remain in the 186-191 rupee range this year due to the current import restrictions in place but warned that the rupee could depreciate to Rs 195-210 range by the June quarter next year on the basis of easing these import restrictions. 
 “We have only a government financing issue. Therefore, the entire economy should not be affected by unnecessary controls, the Government should take immediate action to relax the import control regulations to accelerate growth,” economists told Ceylon FT a few weeks ago.
They say that if import restrictions continue the country’s Small and Medium Enterprises (SMEs) will face a severe crisis and that the government should pay immediate attention to this issue.
They say the prevailing market interest rates have fallen to a record low and there is a possibility of an increase in the face of a possible easing of import regulations in the future. 
Import duties are also a key component of Government revenue. 
These import restrictions are also a violation of Article VIII of the International Monetary Fund (IMF) signed by the government.
Recently, the European Union (EU) also addressed this issue.
EU First Councilor, Head of Political, Trade and Communications Section Thorsten Bargfrede pointed out that the move to restrict imports was not the ideal avenue, especially since the island nation aspires to become a regional trading hub. “We feel that closing borders at this point is not an advantage for Sri Lanka, as it looks to become a regional trading hub,” said Bargfrede.
He stressed that imposing tariffs on certain industries to protect domestic industries is not helping their long-term competitiveness, as without feeling market pressure their productivity tends to contract.
Stating that a regional trading hub is one that allows goods to come in and out, Bargfrede said the EU believes that the current import restriction might work well for Sri Lanka in the short term, as there is a need to protect the currency. However, in the long term, the decision would lead to negative effects. “Over time, it can reduce the attractiveness to European investors and lead to uncertainty and changing regimes is now what investors look for,” he said.
Meanwhile, Minister of Industries Wimal Weerawansa has pledged to provide a speedy solution within the next few days to local industrialists who were victimised due to import restrictions without the accessibility of imported 
Raw materials.
Minister Weerawansa, and State Minister of Finance and Capital Markets and Public Enterprise Reforms Ajith Nivard Cabraal, were present at several rounds of discussions last week in this regard.
The purpose of these discussions was to rationally consider the impact of the temporary import ban on certain goods and on local industrialists.
The discussions focused on listing items where import restrictions should be immediately lifted as they cannot be manufactured locally, items that should be temporarily lifted until they are produced locally, and items that should not be imported at all.
These lists are to be prepared by a committee consisting of Secretaries to relevant Government Ministries and Heads of Customs, Board of Investment of Sri Lanka (BoI) and the Industrial Development Board.
In such a scenario the Government is considering the possibility of tightening its foreign reserves from various sources while easing import restrictions accordingly.

judecroos likes this post

heroxhere

heroxhere
Senior Equity Analytic
Senior Equity Analytic
@samaritan wrote:There is no decision taken by the govt with regards to this, its a request made by certain business segments. 
In my opinion if govt relaxes import restrictions the rupee will depreciate and interest rates will rise.

ANC will not be in agreement to this i am sure!
Agreed.

"The discussions focused on listing items where

  • import restrictions should be immediately lifted as they cannot be manufactured locally,

  • items that should be temporarily lifted until they are produced locally,

  • and items that should not be imported at all.


These lists are to be prepared by a committee consisting of Secretaries to relevant Government Ministries and Heads of Customs, Board of Investment of Sri Lanka (BoI) and the Industrial Development Board."

So they're only focussed on relaxing imports on items that aren't and cannot be manufactured locally. Also, they wouldn't want the rupee to depreciate to Rs 195-210 range as stated.

So our local companies involved in manufacturing these items should and will continuously benefit.

samaritan and judecroos like this post

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum