Restrictions imposed to control trade deficit - CBSL Governor

COLOMBO (News 1st); Retiring Central Bank Governor Professor W. D. Lakshman said that import controls were introduced on a series of items to have a restraint on the trade deficit.

'We did not take this decision to inconvenience the public or the industries. This was a decision that was required to be made. If changes need to be made, we can make them after analyzing the situation,' he said.

"We wanted to bring control on the trade deficit. Restraining imports has to be done carefully as it can affect essential commodities and intermediate products," he added.

Professor W. D. Lakshman said the controls were imposed after conducting a careful study for almost 03 months and following discussions.

"Controls were imposed on items that are non-essential and non-urgent," he said.

"The objective is to achieve the restraint on trade deficit expansion." he reiterated.

"I don't think any single producer has started complaining. This is an instrument which the CBSL has used to retrain imports in the past as well," the Governor further added.

"This move will be less harmful because the volumes are unlikely to stop at once. If someone really wants a certain item, there can be some increase in prices," he added.

The Central Bank Governor made these comments while announcing his retirement plan.

Professor W. D. Lakshman is to step down from the post of Central Bank Governor on the 14th of September.