Prices soars in Sri Lanka due to US dollar shortage – No green signal from India

Imported food prices have soared in Sri Lanka due to US dollar shortage, with more than 1000 containers held up at the Colombo Port for clearance.

But Sri Lankan Central Bank Governor Ajith Nivard Cabraal said this week that sufficient US dollars had been released for clearance of imported goods.

Essential Food importers Association told that importers were unable to clear their consignments upon arrival and pay their suppliers on time as they were forced to wait in line to obtain dollars from banks.

Meanwhile, the foreign companies too have become hesitant to take more orders as payments are delayed due to the prevailing dollar issue, he said.

A shortage of powdered milk has been reported in the markets.

Meantime, the requested aid from India does not appear to have been finalised yet. The requested aid from India is of crucial importance in the current critical bind in external finances of the country and inability to import essential commodities. However, it is not a solution to the medium term balance of payments disequilibrium, a Colombo based media reported.

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