Sri Lanka mulls relaxing domestic market curbs on BOI firms
ECONOMYNEXT – Sri Lanka’s government is considering relaxing restrictions on domestic sales of mainly export-oriented companies under its Board of Investment, which gives incentives like tax breaks.
State Minister of International Trade Sujeewa Senasinghe said the government is committed to liberalising the economy further and giving consumers a better choice.
At present, companies registered under the Board of Investment rules can sell only 10 percent of their output in the local market, with 90 percent having to be exported, BOI Chairman Dumindra Ratnayaka said.
But, Senasinghe told a news conference, held to announce a deal by Thailand’s Rojana Industrial Park to set up an industrial zone, that the government might loosen the restrictions.
“We might make it 20-30 percent (local sales),” he said. “Sri Lankans also need to be able to buy original products at a good prices. For example, if they (foreign investors) make a good fridge or microwave oven (in Sri Lanka), Sri Lankans should also have the benefit of buying it at a lower cost. The public should benefit.”
(COLOMBO, August 21, 2017)