Govt. revises import ban; range of items exempted

President's office says aim is to reduce pressure on forex market and stabilise exchange rate

The Government has once again revised its import restrictions allowing for a range of items to be exempted from what it called a temporary ban.

These include raw materials to be imported for local manufacturing.

The import of items for the telecommunication industry ( subject to applicable taxes and regulation) as well as IT equipment and computer accessories, mobile phones and electronics is also to be permitted “to promote local assembly industry and IT- related businesses”, according to new instructions issued by Presidential Secretary P. B. Jayasundera to the Director General of Customs.

In March, the Government banned the import of telephone sets, including telephones for cellular networks or for other wireless networks; other apparatuses for the transmission or reception of voice, images or other data including apparatuses for communication in a wired or wireless network.

The Special Commodity Levy ( SCL) on a range of items, including agricultural produce, has been revised. Dr Jayasundera’s instructions state that the import of everything other than items on this list— which include yoghurt, potatoes, dhal, onions, sugar and fisheries products— is banned or restricted.

Separately, the import of agricultural items not produced in Sri Lanka but considered important in terms of availability to Sri Lankan households, high-end tourists and consumers has been permitted subject to SCL.

The import of ethanol— except for high quality ethanol by the State Pharmaceutical Corporation— is banned. Palm oil is restricted. But high quality coconut oil is allowed subject to SCL.

Raw material imports for cement, steel, ceramics and plastic are permitted under standard duty or cess and under credit arrangements. Bulk import of cement will be discouraged through specific duties to encourage local value addition.

Import of raw materials for other local manufacturing activities is allowed provided local value addition is at least 30 percent. Rubber manufacturing companies could ship in latex and raw rubber, provided they buy 50 percent or more of local supply at 25 percent higher than the international rubber price.

Project- related imports for flagship ventures could be shipped in using foreign funds raised by investors abroad. The Board of Investment has been tasked with ensuring that the projects do not borrow from local banks until commercial operations begin.

But the import of motor vehicles— including motor cycles and three-wheelers—will remain suspended except agricultural, services and construction-related vehicles.

The guiding principles remain reducing pressure on the foreign exchange market and stabilising the exchange rate, Dr Jayasundera states.

The import of items for the telecommunication industry (subject to applicable taxes and regulation) as well as IT equipment and computer accessories, mobile phones and electronics is also to be permitted “to promote local assembly industry and IT-related businesses