Govt to release US $ 50 million for importers to clear goods

The Government will release 50 million US dollars for importers to clear containers with essential food items held up at the Colombo Port, state Minister Lasantha Alagiyawanna said.

He said the move will help to clear 800 containers at the port thereby preventing a shortfall of supplies in the market.

Traders have claimed that some 800 containers with essential food items including dhal, onions and sprats were held up at the port due to the non availability of US dollars.

Minister Alagiyawanna said that the proposals of the Cost of Living Committee too were discussed at the Cabinet.

Among the proposals were a price increase in milk food, flour, cement and gas. However, instead of allowing a price increase, the government has decided to release more dollars for imports.

However the decision to release US dollars only is unlikely to resolve the issues faced by milk powder importers and the issue of gas imports.

Finance Ministry sources said that there was consideration of relaxing certain taxes to provide relief.

Central Bank Governor Ajith Nivard Cabraal said that the Central Bank hopes to offer a relief package by October 1.

(Pix by Indika Handuwala)