Despite curbs, import bill in 2021 higher than 2019
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Central Bank Governor Ajith Nivard Cabraal. Pic by Akila Jayawadena
Despite import curbs and the pandemic, Sri Lanka’s (merchandise) import bill in January to July 2021 at US$11.7 billion was higher than $11.3 billion in the same period in 2019 (a normal trading year), Central Bank data showed. It was $8.9 billion in the same period in 2020.
In terms of merchandise exports, earnings were $6.8 billion in the same 2021 period, $5.5 billion in 2020 and $7 billion in 2019.
The overall balance on trade, which includes worker remittances, tourism earnings and other earnings, was – $2.7 billion in 2021, -$939 million in 2020 and +$1.5 billion in 2019.
The increase in the import bill for the first seven months of this year was largely due to increasing fuel prices, according to veteran economic W.A. Wijewardena.
Other economists said that some import restrictions were removed earlier this year where exporters needed raw materials for their inputs and this may be another reason for the rise in the import bill.
Discussing foreign exchange related issues, Mr. Wijewardena said that Sri Lanka’s repayment liability in the next 12 months is $6.9 billion whereas the existing reserves has only $3.5 billion, adding that an IMF programme will lift the country’s international standing and encourage more inflows and FDI.
Meanwhile new Central Bank Governor Ajith Nivard Cabraal said, when he assumed office on Thursday, that a roadmap will be unveiled in early October setting out the policy direction and address all issues including the foreign exchange crisis.