Government mulls reducing imports, fuel usage against rising dollar

Colombo, May 20 (Daily Mirror) - President Anura Kumara Dissanayake today stressed the need to reduce import cost and fuel usage in a move to curtail the outflow of the Dollar reserves in the country adding that the Government has already submitted proposals to the International Monetary Fund (IMF) regarding the matter.

Speaking at the 'Ratama Ekata' anti-drug programme in the Batticaloa District, he said Sri Lanka was managing the economy within the framework of the Extended Fund Facility programme linked to the International Monetary Fund and that the Government is having discussions with the IMF about action to be taken regarding the depreciation of the rupee against the Dollar.

The President said the Government has taken several measures to face the situation and pointed out that fuel usage must be reduced and attention must be paid regarding the use of imported goods to reduce import cost.

He said Sri Lanka facing a crisis relating to the US dollar at the moment where dollar income sources such as tourism, export and remittances were facing a decline.

The President said tourist arrivals have reduced by 29 percent in April this year when compared to the April last year, demand for exports have also reduced due to the global economic crisis and remittances have decreased this month.

He said however, fuel cost has increased remarkably where, in May fuel costs have gone up to USD 522 million whereas it was only USD 98 million in February.