Ten chambers express 'serious concern' over foreign currency shortage

COLOMBO (News 1st); Ten chambers of commerce and industry in a joint statement expressed serious concern over the impact of the foreign currency shortage in the country.

The relevant organizations are Ceylon Chamber of Commerce, Federation of Chambers of Commerce and Industry, Ceylon National Chamber of Industries, Chamber of Young Local Entrepreneurs, ICC Sri Lanka, National Chamber of Commerce, National Chamber of Exporters, Chamber of Construction Industry, Women Chamber of Industry and Commerce, and Sri Lanka Apparel.

The organizations said this affects the credibility of doing business with suppliers and business associates who transact in foreign currency.

The statement further read that businesses are finding it difficult to obtain letters of credit and are unable to clear goods in the port, which will affect the availability of essential products especially during the festive season.

The 10 chambers also warned that the banking system would face difficulties as a result of not being able to meet the needs of their longstanding customers and could eventually experience a serious loss of reputation if they were compelled to dishonor committed payments.

The Government will also experience a loss of revenue due to a drop in import duties at a time when increasing government revenue is of paramount importance, the statement mentions.

Accordingly, the chambers urged the Government to finalize swaps and credit lines to receive foreign currency, and added that if such measures aren't successful, the Government should reconsider alternatives such as engaging with the IMF.

The statement noted that businesses will have to relocate overseas, if the current conditions do not improve.