Urgent policy interventions is crucial to mitigate the adverse impact of the forex crisis on retailers who make a salient contribution to the economy, the Sri Lanka Retailers’ Association (SLRA) said yesterday.
The Association called on the government to facilitate the sector’s business continuity through a planned set of actions.
One option to consider would be an allocation of forex to this sector based on what is available for a given month; thus, there is a particular element of certainty on imports and to manage the uncertainty that prevails currently, to be better.It is also imperative that authorities work out modalities to address the situation where forex availability improves soon, the SLRA noted.
A media communiqué by the body stated the retail industry has been under tremendous pressure to deliver during the past one and a half years, mainly owing to closures and disruptions due to the pandemic.The situation has been exacerbated since mid-2021 due to increasing pressure on imports, which has been a core requirement for many retail businesses.
The retail industry in Sri Lanka plays a vital role in the country’s economyand it is pertinent to note that the national retail sales in Sri Lanka are approximately USD 13 Bn.As a growing industry over the past years, it accounts for about 23% of the country’s GDP.This industry also represents 14% of the labour market, with more than 1,100,000 people being employed within this sector in Sri Lanka. Additionally, the overall retail industry contributes significantly to the economic value chain of the country in many ways.