ECONOMYNEXT – Sri Lanka will implement its national tariff policy in three phases from January 2025, cabinet spokesman minister Bandula Gunawardena said.
“The competitive environment for investment in Sri Lanka has been adversely affected due to the revision of the tariff policy in accordance with the various policies introduced from time to time by the existing governments,” Gunawardena told reporters on Tuesday.
A clear, simple, coherent and predictable tariff system is a critical factor in maintaining a competitive environment for trade and investment within a country, he said.
A technical committee headed by the Director General of the Department of Trade and Investment Policy of the Treasury, and members of relevant agencies were appointed to formulate a national tariff policy.
The committee prepared the policy in consultation with the business and industry community under the guidance of trade experts and secretaries of ministries related to this subject, Gunawardena said.
Sri Lanka has high import duties, and so-called para-tariffs such as the port and airport levey, and ‘export development’ CESS which has pushed up cost of imported raw materials, making it impossible for any firm other than those in Board of Investment zones, which can import inputs tax free, to be export competitive.
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Sri Lanka making national tariff policy for export orientation
The policy will be published in a gazette notification under section 101 of the Customs Ordinance to ensure awareness and compliance of the concerned stakeholders. (Colombo/Jun12/2024)