National Democratic Front (NDF) Parliamentarian Ravi Karunanayake has raised concerns over the government’s decision to recommence vehicle imports, highlighting risks to Sri Lanka’s economy.
Addressing the media, MP Ravi Karunanayake said a policy must be made to ensure that the Rupee value does not fall due to the importing of vehicles.
“If the Rupee falls it will increase the cost of expenditure of the country. This will cause a cost-push inflation. This will adversely affect the country’s tax burden. On the other hand interest rates will be increased to tackle the drop in the Rupee value. All of this will surpass the government’s expenditure,” he explained.
MP Karunanayake said the government must implement a policy that will prevent the drop in the Rupee value and will increase foreign exchange.
He commended the government’s plan for prior registrations to import vehicles, adding that this was a good mechanism, as imported vehicles cannot be hoarded for a long period.
Stating that the NDF was not opposed to importing vehicles, MP Ravi Karunanayake said they are only highlighting the need to protect the Rupee while recommencing vehicle imports.
“If they commence imports and the cost goes beyond what we earn through exports, then this will automatically result in the drop of the Rupee value. This will also result in cost-push inflation. We are advising them to recommence vehicle imports, keeping in mind these issues,” he said. (Newswire)