Govt. seeks increased export earnings
View(s):Exporters have been asked to increase their export earnings by at least 10 per cent as the country faces stiff financial challenges particularly in foreign exchange earnings.
A meeting of the key exporters from varied sectors was held at the Central Bank this week with officials from the bank, Governor Prof. W.D. Lakshman and State Minister of Finance Nivard Cabraal.
“We would like to see at least an increase in incomes by 10 per cent,” Mr. Cabraal told the Business Times highlighting some of the concerns expressed to exporters during their meeting earlier in the week.
He pointed out that the government had spoken to exporters of their role in the economy and on the need to increase exports to the country.
The government has also explained to the industries the challenges faced by the government and had also discussed the concerns of the different sectors as well, he said.
“We also wanted them to commit to increase their exports,” he pointed out adding that they had also discussed on how these increases in incomes could be achieved.
During the meeting Mr. Cabraal had also spoken about the depreciating rupee and the government’s attempt to sustain it at around Rs.187 which he considered it to be a “successful mark”.
In this respect, he told the Business Times that during the past five years the rupee has been depreciating at a rate of 6.7 per cent and “now we want to establish a calm environment.”
Some exporters had expressed concerns regarding the COVID-19 related issues pertaining to how long it takes to bounce back after a person is detected, Mr. Cabraal said. Amidst this challenging environment when the government is trying to increase its income, Mr. Cabraal pointed out that when the incomes lessen one has to tighten the strings and in this respect has resolved to restricting imports.
He explained that while some import restrictions have been relaxed others will continue to remain adding that these measures were adopted to ensure they protect the home industries.
Mr. Cabraal pointed out that it is important to conserve “unnecessary expenditure and unnecessary outflow of foreign exchange,” and highlighted there is no need to import vehicles.
Asked what the impact of these restrictions could be on Sri Lanka, he said, “There will be an impact but we need to balance (it).” He noted when there is a sharp decrease of inflows there is a need to limit certain imports. (SD)