“Relaxation of import restrictions boost to trade and economic activities”

With the greater relaxation of import restrictions in October, we have witnessed a resurgence of positive sentiments in trade and economic activities. This has brought a much-needed boost to our industry.This was opined by new Chairman of Import Section of Ceylon Chamber of commerce, Thulitha Mendis at their 89th annual general meeting last week.

“However, high tariffs and the imposition of VAT on previously exempted products have placed a significant burden on consumers already grappling with low disposable income levels. This has, in turn, fostered the growth of a grey market, posing a serious challenge to legitimate importers. These drive cost disparity between legitimate imports and goods smuggled evading taxes.”

“Despite these obstacles, we are now experiencing a much more stable exchange rate, single-digit inflation and interest rates. Also, banks commenced lending at lower rates, thereby stimulating economic activity and we appreciate efforts of the Government in this regard.”

In the past year, the government’s engagement in new trade agreements has underscored the critical need for greater understanding and collaboration with border agencies. With the government entering into various free trade agreements, having a robust national quality infrastructure and national quality policy is crucial to ensuring that our trade standards meet international benchmarks.

The ongoing crisis in the Red Sea region has posed significant challenges to global trade, leading to disruptions and delays. This situation has been exacerbated by the escalation of freight costs, which have significantly impacted the operational aspects of businesses. The increased cost of shipping has added a substantial financial burden on finished goods and intermediate goods importers, affecting their pricing strategies and overall competitiveness.

In response to these challenges, the importance of greater collaboration and engagement with border agencies cannot be overstated. One of our key initiatives has been promoting the adoption of the National Single Window process and digital platforms to provide greater visibility and streamline procedures, making it easier for businesses to navigate the complexities of international trade.

“We had numerous engagements with the Director General of Customs and other officials of Sri Lanka Customs to address disruptions in work. These disruptions caused significant delays in the processing and clearing of cargos, severely impacting importers. In the current challenging economic environment, these disruptions imposed a significant burden on trade. While we appreciate the subsequent facilities granted by customs, it is imperative to maintain a conducive environment continuously for greater benefits.”

“Throughout the past year, our engagement with the authorities has been marked by professional and cordial exchanges of viewpoints. I am pleased to report that many of our requests have been accommodated by the authorities.” (SS)

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