COLOMBO, June 10 (Reuters) – Sri Lanka lifted import restrictions on 286 objects, the Finance Ministry mentioned on Saturday, a recent signal the South Asian nation is beginning to emerge from its worst financial disaster in a long time.
The island off India’s southern coast plunged into disaster final yr as its international change reserves ran out. The federal government restricted imports on greater than 3,200 objects, together with seafood, electronics, and even musical devices.
Its fortunes have improved over the previous 9 months as Sri Lanka secured a $2.9 billion bailout from the Worldwide Financial Fund (IMF), moderated its once-soaring inflation and launched into rebuilding its international change reserves.
Sri Lanka’s reserves grew 26% to a 17-month excessive of $3.5 billion in Could, helped by stronger remittances and tourism earnings. The forex has risen about 24% this yr, central financial institution information confirmed.
“With the financial system stabilising, import restrictions on 286 objects have been lifted from Friday midnight,” the Finance Ministry mentioned in an announcement.
Restrictions on 928 objects will proceed, together with automobile imports, which have been banned in March 2020, the assertion mentioned.
A variety of things from railway carriages to radio broadcasting receivers are included within the newest checklist launched from restrictions.
Sri Lanka may even slash costs of 60 important medicine by 16% from this week.
Regardless of the easing of the disaster, the nation nonetheless wants to finish debt talks with collectors by September, in time for its first IMF programme evaluation, and implement key financial reforms to place its restoration on a sustainable path.
The IMF expects Sri Lanka’s financial system to shrink about 3% this yr after a 7.8% contraction final yr, however the authorities forecasts a return to progress subsequent yr.
Reporting by Uditha Jayasinghe; Enhancing by William Mallard
: .
