Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka imposes15% tax on gold imports that impacts trade deficit
Wed, Apr 18, 2018, 09:34 pm SL Time, ColomboPage News Desk, Sri Lanka.

Apr 18, Colombo: Sri Lanka on Wednesday has imposed a 15% tax on gold to curb surging imports that have impacted the trade deficit and put pressure on the exchange rate, officials said. The finance ministry said the tax was reintroduced after a five-year hiatus as authorities detected a rapid spike in imports in recent months.

"We believe that a lot of duty free gold (imported to Sri Lanka) is smuggled out to neighboring countries where there are high customs duties," a finance ministry official told AFP.

He said nearly 8,000 kilos of gold had been brought into Sri Lanka in the first three months of this year - almost equivalent to all imports of the precious metal in 2016. More than 15,000 kilos has been brought in last year.

However, the steep increase had not translated to a boon in jewellery manufacturing which has sparked suspicions that it was being smuggled to neighboring India, the world's largest consumer of gold.

Sri Lanka's central bank warned in February that the sharp spike in gold imports was worsening the island nation's yawning trade deficit.

The outflow of foreign exchange required to import gold at these volumes was also hurting Sri Lanka's foreign reserves, and in turn depressing the currency.

The Sri Lankan rupee - one of the weakest currencies in Asia - has lost nearly 2% of its value against the US dollar so far this year. It depreciated 2.3% against the dollar in 2017.

 

ColomboPage - Recent 10 Stories ::
Sri Lanka Navy steps up relief operations in flood-affected areas, rescues 172 marooned flood victims
-- [3 hours ago]
Nine dead, over 66,000 affected in Sri Lanka due to adverse weather
-- [3 hours ago]
Bus fares in Sri Lanka go up from midnight today
-- [4 hours ago]
Sri Lanka's Finance Minister invites former president for a debate on debt burden
-- [4 hours ago]
Sri Lanka Central Bank clarifies how gross official reserves were utilized
-- [5 hours ago]
Treasury releases funds to provide relief to flood victims
-- [5 hours ago]
Sri Lanka PM pledges to protect temples
-- [5 hours ago]
Sri Lanka Cricket raises salaries of national players
-- [7 hours ago]
A fast-track agricultural development plan for the next 3 years
Pre- and primary schools in Southern Province closed due to viral flu

Copyright © 2000, 2016 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.