Six-month economic road map: Cabraal announces 20 key measures

October 1, 2021 at 12:05 PM

The 100% cash margins imposed on the importation of non-essential items have been removed with immediate effect, Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal announced today.

Stating that the decision has been taken by the Central Bank, he urged importers to act responsibly, only import what is necessary, and not to import in excess.

The Government is working to assure importers that there will be sufficient foreign exchange and reserves available for them. The authorities would like to ensure that their imports are conducted in such a way that they do not need to stockpile unnecessarily, he explained.

Cabraal further said mandatory conversion of Export Proceeds will be strengthened.

The Central Bank Governor also announced that Sri Lanka’s current foreign reserve is US$ 5 billion.

The Government expects a real growth of 5% in 2021 and 6.5% growth in the first quarter of 2022.

The Gross Official Reserves are to be enhanced to cover a minimum of 04- months of imports, he pointed out.

Cabraal emphasized that no changes will be made to the personal foreign currency accounts (PFCA), previously knowns as the NRFC / RFC accounts.

Foreign remittances have been requested to use the official channels, with the Governor calling for the use of banks in remitting.

The Central Bank has also immediately suspended the parate execution and sieved repossession of leased assets until 31st March 2022 for borrowers who were affected due to the coronavirus pandemic.

Ajith Nivard Cabraal said liquidity support will be provided of up to Rs. 15.000 million to finance interest account accrued in lands that have been given the moratorium.

This move has been sanctioned so that foreign investors could deal with the moratorium effect in a sustainable manner, he said.

The Governor made the observations during the launch of the Six-Month Road Map for Ensuring Macroeconomic & Financial System Stability by the Central Bank of Sri Lanka that was held today.

Presenting the economic plan, Cabraal said the Central Bank has proposed a 3-pronged framework to strengthen the economy and deliver macroeconomic stability commencing with the 06-month Road Map today.

Following are the 20 key points presented in the economic plan of the Central Bank of Sri Lanka.