SL: 70 pc tariff cut on duty-free Indian imports

Colombo, Sept 26: In a move to further cement the already improved bilateral trade ties, the Sri Lankan government has effected a major tariff cut of not less than 70 per cent on a number of top duty-free imports such as cement from the giant Indian market, reports here said.

According to a report by the Lanka Business Online (LBO), the tariffs are scheduled to come down to not less than 70 per cent of the general customs duty rate this year and would be completely done away with by 2008 under the Free Trade Agreement (FTA) between the two neighbouring countries.

The new tariff schedule has already been published as a Revenue Protection Order last week and the new tariff changes have taken effect from September 16, the LBO has quoted Director General of Sri Lanka Customs, C.S.W. Jayatilake as saying.

The report said the tariff phase on Indian imports would cover about 2000 goods, including petroleum products, motorcycles, cement, paper products, onions and lentils, among others.

The phasing out of tariffs has been due since April, but was pushed back due to procedural delays in Parliament, the report said, adding the tariff for imports of finished goods from India will drop from 28 per cent to 8.40 per cent and from 2.5 per cent to 0.75 per cent for industrial raw materials and machinery.

India has lowered all trade barriers with Sri Lanka as agreed under the Indo-Lanka FTA in 2003, except for 400-odd goods on its negative list.

India and Sri Lanka are now in the process of discussing the finalisation of a much-spoken Comprehensive Economic Partnership Agreement (CEPA) to further bolster the bilateral trade ties.

UNI

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