20 percent hike in prices of imported items

Importers raised prices of household electrical and electronic items this week -- and despite a drop in sales in the local market and at airport duty free shops, they warned prices may be raised further for new stocks.Reports said there was a 20 percent increase in the prices of television sets, washing machines, fans, refrigerators, rice cookers and imported foot wear among other items over the week. This came after the Finance Ministry last week imposed tough measures on imports to ease pressure on the Sri Lankan rupee.

Colombo Electric item importers Association President P. Sudath said most importers had already increased prices as they had to prepare to meet the additional cost incurred due to the new measures where they had to deposit 100 percent on imports.

“We are also paying higher rates for the goods already imported as the dollar is appreciating rapidly," he said.

Mr. Sudath said that as a result small- time traders involved in the imports would be affected as they were unable to find funds to make the 100 percent deposit.

A leading importer said that due to the 100 percent upfront deposit required and the depreciation of the rupee the impact on prices would be reflected in the new stocks.

He said that already there was a drop in sales, particularly in their duty free shops as people had opted not to spend their money on electrical and electronic items.

The new measures which also apply tomobile phones have resulted in an upward revision of prices. Tyre prices also have been revised.

Meanwhile, the Finance Ministry's decision to suspend concessionary vehicle permits to state- sector officers for six months is expected to save about US$ 400 million during the period, an official said.

Some 7,000 duty free permits to import vehicles have been put on hold.