The National Chamber of Commerce of Sri Lanka (NCCSL) is disturbed over the news item carried in on these pages on Friday under the heading "Chamber asks CB to withdraw from ACU".

Sri Lanka has been in the Asian Clearance Union (ACU) for over a decade. Other members of the Union are India, Pakistan, Bangladesh, Nepal, Myanmar, Bhutan and Iran. As stated by the Governor, Central Bank, members of the ACU are given a grace period of two months to make settlements. This, he says, relieves the pressure on our reserves.

A noteworthy point is that only 2% of Sri Lanka’s exports come under the ACU, whereas 12% of imports are under ACU. ACU affects importers more than exporters. With the budget deficit running at over 10% of GDP, as well as the delay in the release of the next instalment by the IMF, the outflow of foreign currency from the country should be monitored closely. Therefore, it is important at this point of time to check the outflow of foreign currency by the Central Bank. Getting out of the ACU which helps the country for the sake of a few importers seems unreasonable, especially as the delays of remittances could be taken on a case by case basis. NCCSL welcomes the decision of the Central Bank Governor to get an expert from outside to review the position.
Chandra Embuldeniya,
NCCSL President.