Sept 27, Colombo: The Governor of the Central Bank Ajith Nivard Cabraal has said at a conference on Saturday that the Central Bank of Sri Lanka will release funds to purchase fuel for the remaining quarter of the year and this will increase dollar liquidity as the dependence on the dollar would be reduced.
He said the ban on vehicle imports would be reviewed in December and the temporary import restrictions on several items would be gradually relaxed.
However, he said the ban on vehicle imports would not be 100 percent lifted as there would be a surge of imports and a huge burden on the economy but it would be done systematically based on the behavior of the sector over time.
Mr. Cabraal said that many people view the economy from different angles and that the duty of the Central Bank is to balance the economy and display the right things.
Noting that there is economic instability at the moment due to various reasons such as the epidemic, the Governor of the Central Bank stressed that his priority in the next three months will be to achieve economic stability and then reach the targets. He said a Road Map for the next four months will be issued on October 01.
Commenting on the International Monetary Fund, Mr. Cabraal said the country would like to move forward with solutions that have been successfully achieved locally.
He said the best example of this is the vaccination program in Sri Lanka. It is one of the best vaccination programs in the world and it was not advised by any foreign institution and was 100% locally managed and implemented, Mr. Cabraal emphasized.
The Governor of the Central Bank further stated that Sri Lanka is aware of the importance of timely repayment of foreign loans and plans are in place to repay them on time as in the past.
Recognizing that there was a 'dollar deficit', Mr. Cabraal said it was being resolved and could be resolved sooner than expected.
He acknowledged that although there was no problem with the import of fuel and other essential commodities, there is a shortage of milk powder, LP gas and several other items.