More import controls on the cards to safeguard rupee

The Government by Tuesday will submit another list of non-essential and luxury items to control imports and prevent the further depreciation of the rupee. Chief Economist and National Economic Council Secretary General Lalith Samarakoon told the Sunday Times that three teams from the Finance Ministry, the Central Bank and the Customs were asked to compile the list and submit it at the next NEC meeting.

He said the list was still being prepared and, therefore, he had no idea as to what the non- essential items would be. However, Finance Ministry sources revealed that the list contained about 80 items identified the Customs code. According to them, imported consumer and household items will be curtailed and one of them will be fabrics.

Prof Samarakoon said that at the council meeting they had discussions on dealing with the currency depreciation and measures that could be taken to safeguard the value of the rupee.

He said the quickest and direct way would be to curb imports as that was the main area which drew out the foreign reserves. He said, however, they had no plans to immediat e ly implement import controls.

The NEC chief said he himself had requested the list as he believed the Government had to be prepared if it had to go for import control of non essential

The purpose of preparing the list is to identify the nonimportant items and verify the items that can be controlled by imposing high taxes and quantity limitations. The list will be used to control imports without complications,

items.

“The purpose of preparing the list is to identify the non- important items and verify the items that can be controlled by imposing high taxes and quantity limitations. The list will be used to control imports without complications," he said.

He assured that the list would exclude essential goods, Food and pharmaceuticals.

“We are getting prepared in case the government has to go to such measures then we can categorize non essential items according to a priority order and control imports on the basis of immediate, short run and medium time periods,” he said.