Sri Lankan cement price falls

The price of cement produced in Sri Lanka declined due to the reduction of value-added and other taxes, reports the Colombo Gazette.

State Minister of Internal Trade and Consumer Welfare, Anura Priyadarshana Yapa, said that the price of cement has decreased by LKR100 (US$0.55)/50kg bag.

A 50-kg bag of cement is currently being sold for a price between LKR1050 and LKR1095 to. This includes a 15 per cent VAT and a two per cent NBT. According to the new tax amendments VAT is reduced to eight percent and the NBT is abolished. Accordingly, the price of a bag of cement should come down by LKR7-100.

UltraTech Cement Lanka (Pvt) Ltd welcomed the government initiative to reduce VAT and eliminate NBT. Its effect on the prices of construction material is expected to benefit the construction industry in Sri Lanka. As part of its commitment towards the growth of the Sri Lankan economy, the company, as a goodwill gesture, has passed on the benefits of the reduction in VAT and removal of NBT to its customers across all market segments in Sri Lanka with effect from 1 December 2019. This has resulted in a reduction in cement prices, thereby benefiting its customers.