German companies operating in Sri Lanka have raised the red flag with some warning that they will be compelled to withdraw from the country if the import ban continues, Daily Mirror has reported.
The report further states:
Sri Lanka has slapped an import ban on several items owing to the shortage of US dollars, but Germany has urged the Government to relax the ban.
The German Ambassador to Sri Lanka Holger Seubert told a group of journalists in Colombo today that some German companies have raised concerns over the import ban.
He said that if the import ban continues for another 2 years then some companies may withdraw from the country. A number of German companies are operating in Sri Lanka and promote German products, including vehicle spare parts.
Just recently leading Japanese companies Mitsubishi and Taisei announced they will be scaling back operations in Sri Lanka owing to the economic crisis. Germany has also suspended issuing loans to Sri Lanka after the island declared bankruptcy.
However, the German Ambassador said that they hope the situation will improve once Sri Lanka’s deal with the International Monetary Fund (IMF) gets approved. Seubert said that there are also concerns over the overall business environment for German investors.
Discussions in this regard have been held with the Sri Lankan authorities, including the Board of Investment (BOI).
