Sri Lanka Imports

Oops.  
Does anyone know if this is valid for already opened LCs? pls let me know.......

Lot more areas to tighten

We import lot of substandard Garments from China, while export quality garments to Western Countries. Branded garments (manufactured locally) cannot be sold locally, which is understood. The rawmaterials (Fabric) leftovers and excess could be used rather making it no use for anyone. Because we import substandard,cheap garments from India and China. Most of it are brought through customs in to the country by undervaluing, differences are sent by "Undiyal". Weak systems and corruption allows this

If we turn it the other way to benefit the manufacturers for local markets it will provide some employment opportunities. Help the Industry indirectly to survive. ( Washing plant and Embroidery plant will fill their capacity) save some foreign earnings.

Inland Revenue has put in place lot of Duty structures to save local Industry and to curtail imports. No use , because the Chinese imports are still cheaper, where these Pettah importers can creep through the customs loop holes.

This is just one example. There are a Medicines (Cephalexin,Seline),Foods ,Garments etc... where we can produce locally ,save FOREX & provide employment.

It’s a shame that the government only tighten the grip on small scale importers and government servants who want to buy new vehicles.
This is not going make any impact on large scale private importers. Perhaps they can ask more money from buyers (to cover the 100% margin) now onwards.

That’s disgraceful

Does this apply to Permit Holders

I think we could buy DIMO at 200-300 rupees sooner...

Hey Guys,

May be the entire Bunch is now enjoying the 2012 Models of Top of the Range Cars, So others have to stop now, This will be released once the Clan wants New Models. So we all can wait till that happens.

Hawk Eye wrote:

This is just one example. There are a Medicines (Cephalexin,Seline),Foods ,Garments etc... where we can produce locally ,save FOREX & provide employment.

You have a valid point

But 100% margin thing is a good step.
Also saw an article, if you sell your permit car then the new BUYER should have a Income Tax file opened....before the transfer take place.

By 2020 most will have to pay Income Tax with this, the Income tax officers will come knocking your door....

TAH

by FP Editors Sep 2, 2013

The depreciation of the rupee against the dollar is having an unlikely fallout on Tata Motors. Faced with increased restriction on car imports in Sri Lanka, the company may have to phase out its ultra low cost car Nano from the country, said a report in The Hindu.

Sri Lanka’s central bank last week made it mandatory for car importers to pay 100 percent margin to banks for letters of credit (LCs).

The bank’s move is aimed at curbing imports from its trading partners, including India, who have witnessed a sharp currency depreciation against the dollar.

“As a consequence (to falling currencies), there has been a growing possibility that the importation of motor vehicles into Sri Lanka could accelerate in the period ahead. The Central Bank believes that this trend should not be allowed to continue without a suitable response,” the central bank has been quoted as saying in a press release. It will review the new rule after six months.

According to this report, Sri Lankan imports increased to $1636.50 in June 2013 from $1548.80 million a month ago. The country imports petroleum, textile fabrics, foodstuff and machinery and transportation equipment and the key partners are India, China, Iran and Singapore.

The latest move will impact auto exports from India to the island nation, where, according to The Hindu report, 75 percent of the vehicle imports are from Indian companies such Tata Motors and Maruti Suzuki.

According to the report, in May 2011, when Nano was launched in the island nation, it cost just Lankan rupees (LKR) 925,000 (which is about Rs 4.50 lakh). It rose to LKR 20 lakh after the government imposed an excise of LKR 750,000 on cars below 1000-cc.

The sales have already fallen from 400 a month at the start to 20 a month. With the new restrictions in place, there will be fewer imports of the Nano now.

The development is significant as it comes at a time when India is trying its level best to make the most of rupee’s fall. According to a report in the Economic Times today, exports prospects for Indian textiles and auto components have brightened of late as countries like Sri Lanka, the US and Germany find it profitable to import from India rather than from China.

This is because China’s yuan—a controlled currency—has appreciated even as the rupee has depreciated around 16 percent against the dollar this year. Depreciation of a currency makes the country’s products cheaper in the international market.

For a country like Sri Lanka, the depreciation in a trading partner’s currency spells trouble as there is a chance of cheap imports flooding the markets. That is the reason for the Sri Lankan central bank’s concern.

In an interview to Bloomberg TV on 16 August, central bank governor Ajith Cabraal raised concerns about the falling currencies of its partner countries but said their impact on LKR has been minimal.

This is because Sri Lanka has been able to build up a little more buffer than many of its partners, particularly India, he said. This is giving the central bank a little more space to manoeuvre, he said.

The rupee’s fall is giving ample opportunities for Indian companies to take advantage of. As TCA Ranganathanm, CMD, Export Import Bank of India, tells ET, “Opportunity is knocking.”

But Sri Lanka’s confidence can be a cause of worry for India. Should it prompt the smaller nation to take more steps to curb imports, it will hit India hard.
http://www.firstpost.com/business/rupee-painnano-may-lose-its-sri-lankan-market-1078771.html

Manipulation to prevent supper September also may be due to same reason

Sri Lankan imports totaled an estimated US$18.7 billion in 2018, dipping -2.7% since 2014. Year over year, Sri Lankan import purchases declined by -12.1% from 2017 to 2018.

From a continental perspective and using 2017 calculations, more than three-quarters (78.9%) of Sri Lanka’s total imports by value in 2017 were purchased from other Asian countries. European trade partners supplied 11% of import sales to Sri Lanka while 5% worth of goods originated from North America. Smaller percentages came from exporters in Oceania (2.5%) including Australia, Africa (1.7%) and Latin America (0.9%) excluding Mexico plus the Caribbean.

Given Sri Lanka’s population of 22.6 million people, its total $18.7 billion in 2018 imports translates to roughly $850 in yearly product demand from every person in the Asian nation.

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The following product groups represent the highest dollar value in Sri Lanka’s import purchases during 2018. Also shown is the percentage share each product category represents in terms of overall imports into Sri Lanka.

-Mineral fuels including oil: US$2.3 billion (12.5% of total imports)
-Vehicles: $2 billion (10.5%)
-Machinery including computers: $1.6 billion (8.5%)
-Electrical machinery, equipment: $1.3 billion (6.7%)
-Knit or crochet fabric: $798.4 million (4.3%)
-Cotton: $660.1 million (3.5%)
-Plastics, plastic articles: $595.9 million (3.2%)
-Iron, steel: $577 million (3.1%)
-Ships, boats: $535.9 million (2.9%)
-Paper, paper items: $437.4 million (2.3%)
Sri Lanka’s top 10 imports accounted for over half (57.4%) of the overall value of its product purchases from other countries.

Imported ships and boats posted the fastest-growing increase in value among the top 10 import categories, up by 116.3% from 2017 to 2018.

In second place for improving import purchases was vehicles, up 30.8%. Trailing that were Sri Lankan imports of cotton via its 0.9% gain.

Leading the decliners was imported iron and steel which retreated -28.1% year over year.

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In 2018, Sri Lankan importers spent the most on the following 10 subcategories of fossil fuel-related products.

-Processed petroleum oils: US$2.2 billion (up 3.2% from 2017)
-Coal, solid fuels made from coal: $176.8 million (down -31.7%)
-Petroleum jelly, mineral waxes: $4.7 million (up 30.6%)
-Asphalt/petroleum bitumen mixes: $2.7 million (up 443.4%)
-Coal tar oils (high temperature distillation): $1 million (down -83.9%)
-Coke, semi-coke: $463,000 (down -64.9%)
-Petroleum oil residues: $332,000 (down -99%)
-Petroleum gases: $69,000 (down -100%)
-Natural bitumen, asphalt, shale: $37,000 (up 825%)
-Peat: $24,000 (down -27.3%)

Among these import subcategories, Sri Lankan purchases of natural bitumen, asphalt and shale (up 825%), asphalt or petroleum bitumen mixes (up 443.4%) then petroleum jelly and mineral waxes (up 30.6%) grew at the fastest pace from 2017 to 2018.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported fossil fuel-related among Sri Lankan businesses and consumers.

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In 2018, Sri Lankan importers spent the most on the following 10 subcategories of vehicles.

-Cars: US$1.2 billion (up 119.4% from 2017)
-Motorcycles: $234 million (down -6.6%)
-Trucks: $177.9 million (down -47.1%)
-Automobile parts/accessories: $120.1 million (up 47.6%)
-Public-transport vehicles: $57.2 million (down -45.7%)
-Motorcycle parts/accessories: $56.2 million (up 10.7%)
-Tractors: $47.7 million (down -32.5%)
-Bicycles, other non-motorized cycles: $24.6 million (up 4,253%)
-Special purpose vehicles: $15.7 million (down -41.3%)
-Trailers: $8.5 million (up 43.1%)

Among these import subcategories, Sri Lankan purchases of bicycles and other non-motorized cycles (up 4,253%), cars (up 119.4%) then automobile parts or accessories (up 47.6%) grew at the fastest pace from 2017 to 2018.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported vehicles among Sri Lankan businesses and consumers.

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2018, Sri Lankan importers spent the most on the following 10 subcategories of machinery including computers.

-Computers, optical readers: US$179.8 million (up 9.7% from 2017)
-Printing machinery: $73.7 million (down -13.4%)
-Taps, valves, similar appliances: $64 million (down -5%)
-Turbo-jets: $61.7 million (up 26.7%)
-Refrigerators, freezers: $58.8 million (down -14.3%)
-Air or vacuum pumps: $57.9 million (down -10%)
-Heavy machinery (bulldozers, excavators, road rollers): $56.5 million (down -38.1%)
-Sewing machines, related furniture: $54.4 million (down -18.4%)
-Air conditioners: $53.6 million (down -12.6%)
-Miscellaneous machinery: $53.2 million (down -33.6%)

Among these import subcategories, Sri Lanka’s purchases of turbo-jets (up 26.7%) and computers including optical readers (up 9.7%) grew from 2017 to 2018.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported machinery among Sri Lankan businesses and consumers.
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In 2018, Sri Lankan importers spent the most on the following 10 subcategories of electrical items including consumer electronics.

-Phone system devices including smartphones: US$432.7 million (down -9.8% from 2017)
-TV receivers/monitors/projectors: $85.6 million (down -27.8%)
-Lower-voltage switches, fuses: $70.9 million (up 14.8%)-
-Electrical converters/power units: $63.5 million (down -32.1%)
-Solar power diodes/semi-conductors: $51.6 million (up 37.8%)
-Electric generating sets, converters: $48.9 million (down -21.3%)
-Insulated wire/cable: $44.8 million (down -37.7%)
-Electric water heaters, hair dryers: $37.7 million (up 25%)
-Electric storage batteries: $36.9 million (up 26.5%)
-Unrecorded sound media: $28.6 million (down -9.5%)

Among these import subcategories, Sri Lankan purchases of solar power diodes and semi-conductors (up 37.8%), electric storage batteries (up 26.5%) then electric water heaters and hair dryers (up 25%) grew at the fastest pace from 2017 to 2018.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported electronics among Sri Lankan businesses and consumers.

http://www.dailymirror.lk/breaking_news/Govt-to-suspend-import-of-non-essential-goods/108-186114

is pohottu government and president on political suicide mission or something?
without first improving production of the country they should not restrict import like that. unbelievable

According to the IMF’s April 2020 global GDP revisions, the recovery of Sri Lanka’s key export markets look to lag its key import markets in 2020.