In a bid to enhance trade competitiveness and foster a more conducive environment for investment, Sri Lanka is poised to unveil a revamped tariff system starting from next year.
The decision comes in the wake of the Cabinet of Ministers' green light to a new tariff policy earlier this week.
The approval follows a thorough review by the Cabinet, which underscored the adverse impact of frequent tariff revisions on the nation's investment appeal. Acknowledging the necessity for a transparent, simplified, and consistent tariff structure, the government emphasized the pivotal role such a system plays in bolstering trade and investment dynamics domestically.
The upcoming national tariff policy, slated for implementation in three phases commencing January 2025, aims to provide stakeholders with clarity and predictability. A forthcoming gazette notification will detail the specifics of the policy, informed sources revealed.
Crafted by a technical committee led by the Director General of Trade and Investment Policy at the Treasury, the policy formulation process incorporated consultations with key stakeholders, including the business community, industrial groups, trade experts, and relevant ministry secretaries.
President Ranil Wickremesinghe, also serving as the Finance, Economic Stabilisation, and National Policies Minister, spearheaded the committee's appointment and subsequently presented the policy before the Cabinet.
This development comes on the heels of April's announcement by the government, outlining its vision to foster an export-oriented economy through the development of a new tariff framework. While tariff revisions are recognized as essential tools for safeguarding domestic industries and aligning with global trade dynamics, the frequency of such revisions can significantly impact export diversification efforts.
Of particular concern in Sri Lanka are the hefty import duties and additional charges like the port and airport levy, which have substantially inflated the costs of imported raw materials for local manufacturers.
