Sri Lanka has promised the European Union (EU), the country’s second largest trading partner, to present a plan by June to lift the import restrictions that came into place in 2020 as a measure to hold on to the fast-depleting foreign exchange reserves.
This was conveyed during the 25th session of Sri Lanka – EU Joint Commission that was held virtually on April 25.
Sri Lanka expressed its intention towards a gradual phasing out of the restrictions, factoring in the current economic conditions.
When the government took the unpopular decision to restrict certain imports towards the latter part of 2020, the EU did not hide its displeasure with the move and asserted time and again that “trade is not a one-way street”.
Since the restrictions came into place, the EU had been repeatedly urging Sri Lanka to steer away from the protectionist trade policies as they were unfair to its trading partners.
The International Monetary Fund (IMF) in March said Sri Lanka was expected to phase out the import and exchange restrictions currently in place.
“Authorities will develop a plan for phased removal of import restrictions and exchange restrictions related to BOP. That plan is due by June 2023,” said IMF Mission Chief Masahiro Nozaki.