16 December 2019 08:17 am
By Nishel Fernando
Sri Lanka’s relatively low duty structure on luxury goods such as wrist watches are supporting the country to position itself as a regional retail hub by attracting high-end tourists from the region, competing with international retail hubs such as Dubai and Singapore.
“The government has changed the duty structure. So we can be on par with the leading international markets. For example, in terms of wrist watches, we are on par with anyone. We can match Dubai, Singapore, Malaysia...etc. We are in fact the cheapest in the region. We see many Indians coming to Sri Lanka to buy watches as their taxes are almost around 30-35 percent while ours is only at 7-10 percent. Therefore, we are very competitive,” Royal Lanka Agencies, Director Jawzi Dastakeer said.
The imported branded watches are currently only subjected to Ports and Airports Development Levy (PAL) and certain clearing charges.
He was speaking to Mirror Business on the sidelines of the launch of Frederique Constant and Alpina Swiss made luxury watch brands in Sri Lanka recently. Turret, one of the verticals of Royal Lanka has been appointed as sole authorized agent for Frederique Constant and Alpina brands.
Further, Turret is also the sole authorized agent for Raymond Weil, Baume & Mercier and Mont Blanc luxury watches in Sri Lanka.
Dastakeer noted that their mid range and luxury watch sales had been growing at 10-15 percent until the Easter Sunday attacks in April.
“There’s a downturn, but we are optimistic that it should be picking up soon when Chinese tourists start coming back to Sri Lanka,” he stressed.
The tourist arrivals from China have declined sharply by nearly 40 percent at the end of November, recording the largest decline among top to tourism source markets of Sri Lanka.
However, Dastakeer remarked that Sri Lankans are by far the largest buyers of luxury watches.
“Earlier, the main issue for brand-conscious Sri Lankans was the need to fly out to purchase their brands. However, as many brands are present in Sri Lanka now, they can purchase their preferred brands in Sri Lanka at the same price point,” he said.
Further, easy-payment schemes have also boosted the sale of mid range and entry level luxury watches among brand-conscious young executives in the corporate sector.
Royal Lanka has acquired over 35 international clothing and watch brands under their three verticals which includes Turret, GMT and UrbanTrendz over the past few years.
GMT serves to the mid range market with its fashionable luxury watch brands while Turret serves the luxury watch market with a particular focus on entry level luxury watches.
Turret is also planning to open its third outlet at Shangri-La’s One Galle Face shortly as a mono-boutique.