Jitters over electronic items on possible ban list
The Central Bank’s move to discourage non- essential imports has raised concerns among public and businesses about which items will face a ban.
“There are certain things at discussion level. The Central Bank usually submits recommendations but not all are accepted. With regard to import restrictions, items considered absolutely non-essential [of which] we have stocks for several months, there is no problem in imposing restrictions for several months. I do not want to say anything on matters that are in discussion” Governor of the Central Bank, Prof. W. D. Lakshman said on Friday.
This follows a previous recent statement by the Governor that the Central Bank “is of the view that there is further space to curtail non-essential and non-urgent imports”.
In the absence of detail, speculation is rife about items on the Central Bank’s prospective list.
“Some say there are plans to ban electronic items including mobile phones and electronic appliance, some say perfumes and luxury items,” Ranjith Vithanage, President of the National Movement for Consumer Rights, said.
“This speculation has resulted in vendors increasing prices. With no price control mechanism it is the public that is inconvenienced, especially when it comes to electronic appliances and phones.”
He said parents are complaining that the price of basic smartphones usually sold for about Rs. 19,000 have increased in price to up to Rs. 25,000, the excuse being given that imports would be banned soon.
“The public is already burdened by import restrictions on vehicles, vehicle spare parts and tyres, and spices and pulses,” Mr. Vithanage said.
Electric goods retailer Abans’ Director of Operations, Dinesh Perera, said a ban on imports would affect its operations, with huge capital investments having gone into setting up many retail stores.
“Countries are developing with the latest technology. Mobile phones and electronic items are essential, rather than luxury goods. Many people, even middle-class income earners, opt for hire purchase as they cannot afford to pay the full price at once for goods deemed essential,” Mr. Perera said.
He said if bans on electronic goods imports were imposed there would be severe repercussions on online distance education through mobile phones and televisions, the ability to work from home, mobile banking and self- employment opportunities using electronic appliances.
“Digitalising of government and industries will take a step back if such a ban takes place,” he said.
A manager at a perfume shop based in Colombo said with sales already dropping sharply a ban would have an impact on businesses dealing with imported cosmetics and fragrances.
Sri Lanka Retailers Association President Hussain Sadique said the government should exercise care in the selection of goods to go on a list of restricted imports.
“A laptop might be considered a luxury but it is highly essential. Most businesses are experiencing lower sales already and import restrictions on some items will cause inconvenience to both businesses and the public,” he said.