Sri Lankan food prices have begun to fall since open account imports were allowed, and more funds have been allocated from an Indian credit line, according to Trade and Food Security Minister Nalin Fernando.
“We decided in cabinet to allow open account imports due to the breakdown of import activities due to forex shortages,” Minister Fernando told parliament.
“We’ve had some good results in the last month.” Many essential items have come down in price this week.”
In May, open account imports were prohibited in an effort to reduce Undiyal premiums, which were driven by excess money attempting to leave the country.
However, the central bank raised interest rates to reduce money printing, slow private credit, and imports, which is producing results, according to analysts.
Meanwhile, Fernando stated that in addition to a 180 million dollar allocation from an Indian credit line for food, another 160 million dollar allocation will be made this week.
Over the next few months, we will be able to make more food available and lower prices.