Food prices start to come down, Nalin Fernando claims

COLOMBO: Sri Lanka food prices have started to come down after open account imports were allowed, while more money has been allocated from a Indian credit line, Trade and Food Security Minister Nalin Fernando has said.

“We decided in cabinet due to the breakdown of import activities due to forex shortages to permit open account imports,” Minister Fernando told parliament.

“We have had good results over the past month. This week we have seen a fall in the price of many essential items.

”Open account imports were barred in May in an attempt to reduce Undiyal premiums, which were driven by excess money seeking to leave the country.

However the central bank also raised rates to reduce money printing, slow private credit and imports, which is bringing results, analysts say.

Meanwhile Fernando said in addition to a 180 million dollars allocated from an Indian credit line for food, another $160 million will be allocated this week.We will be able to make more food available, reduce prices over the next few months.