Colombo: A top minister stated on Friday that Sri Lanka still has a severe shortage of US dollars, making it impossible to resume vehicle imports despite the fact that the government eased import restrictions on roughly 300 commodities a week ago. The supply and demand for dollars have taken over as the deciding factor in the dollar's exchange rate. State Minister of Finance Ranjith Siyambalapitiya recently stated that the country would not be depleting its reserves in order to keep the dollar exchange rate stable. Siyambalapitiya suggested last week that the government would restart automobile imports in an effort to increase tax revenue.
However, last week's expenditure of roughly USD 80 million by the government to purchase petroleum compounded matters. "If USD 75-80 million could make such an impact, then we need to closely consider the impact when vehicle imports are allowed as they consume a large volume of dollars," Siyambalapitiya said. The minister has stated that further research on the plan to import vehicles is required. "Our nation is in the midst of rebuilding after a devastating economic downturn. So, rather than making superficial judgements, we need to dig deep into the implications for the economy as a whole, he said. The Finance Ministry deregulated the import of 286 products last week.