Sri Lanka, which is suffering from an economic crisis, has banned the import of 300 more items to reduce the budget deficit.
According to the news agency AFP, Sri Lankan President Ranil Wickremesinghe has banned the import of home appliances, equipment, and sports goods, among others.
Sri Lanka, a country with a population of 2.2 million, is unable to purchase essential commodities due to the lack of foreign exchange reserves.
Last week, Sri Lanka’s central bank announced that foreign exchange reserves had improved, but the government still banned the import of more goods. Sri Lanka’s economy is likely to shrink by 8 percent this year, while inflation will reach 65 percent by September .Dwindling foreign exchange reserves and over $50 million in foreign debt forced Sri Lanka into bankruptcy.
Negotiations with the Sri Lankan officials of the International Monetary Fund (IMF) are expected on Wednesday to get out of the financial crisis. There may be delays. Remittances from migrants, Sri Lanka’s largest source of foreign exchange, fell by 50 percent to $1.6 billion.
It should be noted that last month the World Bank has announced that it will not provide further financial assistance to Sri Lanka unless the country suffering from economic difficulties introduces large-scale structural reforms.
The World Bank had said that although it was concerned about the impact of the economic crisis on the people of Sri Lanka, fnds would not be disbursed until necessary reforms were introduced.
The World Bank added in a statement that it does not intend to provide further aid to Sri Lanka until the economic policy framework is in place.
The World Bank has emphasized the need for reforms that focus on bringing about economic stability and consider all the factors that led to the economic crisis.
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