Sri Lanka slash duty on cement import

To facilitate uninterrupted imported cement and boost the construction industry, the Sri Lankan government announced that the cess imposed on imported cement was reduced by INR1 (US$0.01)/kg  to extend relief to the construction industry. This levy reduction was in effect from 6 September, as notified by the Finance Ministry through local media.

Specifically, the tax on artificially-coloured or white cement has been reduced from INR5 to INR4/kg. In contrast, the cess on cement imported in packages of 50kg or less has been reduced from INR8 to INR7, marking significant changes in the tax structure.

The directive was made by the powers vested in President Ranil Wickremesinghe as the Investment Promotion Minister under Section 14 of the Sri Lanka Export Development Act, No 40 of 1979, with the concurrence of the Finance, Economic Stabilisation and National Policies Ministry.

Pakistan is the primary exporter of cement to Sri Lanka,  therefore the tax reduction is expected to significantly benefit the country, underscoring the decision's international implications.