ECONOMYNEXT – Sri Lanka plans to relax import controls on cosmetics and motor spares in the next two weeks, State Minister for Finance Ranjith Siyambalapitiya has said.
Sri Lanka slapped import bans on 1,465 items in August 2022 after forex shortages emerged from central bank money printing. Following appeals bans on 708 items had been lifted, Minister Siyambalapitiya has said.
Multiple small business associations have complained that they are at risk of closure after the import bans. Makeup artistes and beauty parlors have said they will have to sack people or close after the ban on cosmetics.
Taking into account reasonable appeals, the import bans will be progressively relaxed, Minister Siyambalapitiya had said.
He was speaking while inspecting stocks of seized cosmetics and mobile phones at customs warehouses.
Sri Lanka has imposed progressively tighter exchange and import controls after a Latin America style central bank was set up by a US money doctor in 1950, leading high inflation currency troubles and social unrest.
Macro-economists primarily depreciate currencies and de-stabilize economies by mis-targeting interest rate through open market operations and other liquidity tools. The power to mis-target rates was given by politicians in 1950.
An import control law was brought in 1969 after economists’ mis-used the central bank to re-finance rural credit which now being used against the people by economists and bureaucrats. The central bank however, has now stopped mis-targeting rates. (Colombo/Oct23/2022)
Of course, there are many false faces to be made up, so the extensive use of cosmetics is needed.