Sri Lanka Refuses to Bring Down Import Duty Tariff

Previously, we brought to you news that Sri Lanka had decided to increase the tariff rates on Indian imports to the country. We also reported that a diplomatic mission from India would hold talks with the Sri Lankan government to resolve the issue. Reports are now coming in that the mission failed to achieve the desired result and that Sri Lanka will not lower the tariff rates.

Sri Lanka’s Deputy Minister of Finance and Planning has stated that the reason for the increase in tariff is not to slow down Indian imports to the country, but rather because Sri Lanka is facing a balance of payment problem. According to the minister, the income earned from the exports was not high enough to balance out the imported goods value. He also stated that the tariff will not be lowered as Sri Lanka currently has to focus on managing its trade balance. The island of Sri Lanka currently accounts for 13 per cent of India’s total vehicle expo