Serverless Components and AWS Parameters (from System Manager)

I am using serverless components (AppSync and Lambda primarily) and terraform for infrastructure. I would like to access AWS parameters but the syntax below does not work:

lambdaMutationSignInWithPhoneNumber:
component: “@serverless/aws-lambda”
inputs:

env:
FAUNADB_URI: ${ssm:/prod/database/faunadb/uri}

What am I doing wrong?