More flexible exchange rate needed to promote exports and bring in more dollars,” says CCC Chairman


The disparity of Sri Lankan rupee interest rate against the US dollar interest rate should be increased by 25 basis points to encourage exporters/export oriented entities to bring more dollars into the country, says Vish Govindasamy, newly elected Chairman of the Ceylon Chamber of Commerce (CCC).

“At this juncture, a more flexible exchange rate is needed and increasing the disparity by 25 basis points will definitely assist exporters,” Mr. Govindasamy said at an online media briefing recently on the occasion of his being elected chairman of the CCC. The event was organized by the CCC.

He said tourism, inward remittances and exports are the most import sectors to focus on and the government should have a medium to long term plan for all those sectors.

“However, at this point in time restrictions on capital and intermediate goods imports should be eased out to promote exports, which is the need of the hour,” he said.

Mr. Govindasamy also added:

“Tourism, remittances and exports are the main sectors that need to be developed by the government to attract foreign exchange into the country. At present the government should consider extending the debt moratorium to the tourism/hotel sector, which has been suffering since 2019.

This sector is now facing a difficulty of maintaining the present staff and in servicing debt to lending organizations.

A permanent secretariat should be set up to fast track growth in the country, especially the export sector.

The CCC could be involved in the development process of the country when it comes to reviewing and implementing polices of the state because our members are fully equipped and skilled for these tasks.

Developing and promoting a Business Park, on the lines of the Hambantota Pharmaceutical Manufacturing Park, is the way forward for attracting foreign investments into the country”.