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Govt. plans phased para-tariff removal to sharpen export competitiveness
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Chathuranga Abeysinghe |
April 1 - The government is preparing to gradually remove para-tariffs in a structural trade reform aimed at lowering costs for exporters and improving the country’s competitiveness, as policymakers push to strengthen export-led industrial growth.
The move, outlined by Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, is expected to reduce input costs for exporters and support Sri Lanka’s participation in multilateral trade agreements, marking a shift towards a more open and efficiency-driven trade regime.
“We can see the industry is being proactive in diversifying markets but there is more we have to do. That is why the government is heavily focused on export-led industrial growth, which is also why the government is strengthening EDB,” Abeysinghe said, positioning the reform within a broader policy push to expand and stabilise the export base.
He shared his views while addressing the 40th anniversary event of the National Chamber of Exporters of Sri Lanka (NCE).
For exporters, the phased removal of para-tariffs is likely to ease cost pressures, particularly for sectors reliant on imported raw materials, at a time when global demand remains uneven. Lower input costs could improve price competitiveness and support deeper integration into global supply chains.
However, the rollback also signals a shift away from long-standing protectionist measures. Para-tariffs have historically acted as a buffer for local industries and a source of government revenue, and their removal is expected to increase exposure to import competition, particularly for less competitive domestic sectors.
While the reform is aimed at supporting export growth, it may have adjustment costs for certain industries.
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