Importers call for lesser tariffs to revive business

By Uditha Jayasinghe

The Importers Section of the Ceylon Chamber of Commerce (CCC) on Monday called on the government to reduce and regulate import tariffs in a bid to revive business activities.
Speaking at the Annual General Meeting (AGM) Importers Section Chairman Ranjan de Silva yesterday noted that a lower tariff structure, at least on a short term basis will encourage customers to start visiting showrooms again, admitting that they now look like “warehouses with stocks that have not been moved for months.”
While insisting that the importers were not against streamlining and improving business processes as long as they do not add to transaction costs, de Silva maintained that the new customs regulations might hamper this goal. “We hope that the authorities will also review whether these stated objectives are being achieved as many compliant companies have observed that higher tariffs mean more grey market operations.”
He also pointed out that although policy interest rates and inflation have been on the decline in the current year, the benefits of lower interest rates have still not reached the business sector. “This I believe is mainly due to the government borrowings taking the liquidity out of the market. The high interest rates have been a major deterrent for the revival of economic activities. Based on current information there is a disconnection between what is published and the economic reality that is faced by the business community with many pursuing survival agendas under the current conditions.”
Chief Guest Public Administration Minister, Dr. Sarath Amunugama in response focussed on the efforts being made by the government to reduce insurance, freight costs and security tariffs that were imposed during the war. He highlighted the efforts that the government was making in terms of “strategic decisions” to inject fresh funds into foreign reserves and maintain a stable exchange rate for importers.
“The primary reason for the IMF loan is so that it can boost foreign reserves and maintain a healthy current account for importers. It would also increase investor confidence. In terms of foreign reserves it is not that important to the government because over the past three months we have received around US$ 300 million in foreign remittances and development aid,” he said.
Amunugama also insisted that importers should concentrate on consumptive expenditure and abstain from dumping in Sri Lankan markets. He also called on them to work closely with the Customs Department.