Tile and sanitary ware importers concerned over severe product shortage
Sri Lanka tile and sanitary ware importers continued their agitation highlighting the present plight of the industry which has been affected due to import restrictions since April last year.
The importers urged the government to create level playing field for them and three local manufacturers to meet the local demand of ceramic products as the ceramic import became zero causing massive tax revenue loss of Rs.12 billion per annum for the state, they told reporters.
It has fulfilled 55 per cent of the local requirement of the country specially for building construction while the balance 45 percent is being met by local manufacturers.
Addressing a media conference in Colombo, executive members of Tile and Sanitary ware Importers’ Association (TSIA) expressed their doubt on the government’s announcement on Wednesday March 24 relating to the relaxation of restriction imposed on ceramic ware and related products.
Cabinet spokesman Minister Keheliya Rambukwella revealed on the same day that the Cabinet of Ministers has granted approval for the importation of suspended ceramic products on a 180-day credit basis.
The proposal made by the Prime Minister for the submission of the relevant gazette notification issued on 11.02.2021 to Parliament has been approved by the Cabinet, he said.
However high ranking members of the association noted that the same gazette notification has been withheld within less than 24 hours after its release to the public on a directive issued by the Controller of Imports and Exports on an earlier occasion.
They noted that the government should stick to its current decision without reversing it as they have agreed to import these ceramic ware including tiles subject to special CESS with amicable agreement with local manufacturers at a meeting held at the Treasury recently.
Trade Minister Bandula Gunawardena issued a government notification on March 15 revising import duty and imposed a new CESS of Rs. 490 per square metre of tiles while increasing the customs duty to Rs.30 from Rs. 15 or Rs. 125 per kilo from Rs. 40 per kilo for sanitary ware imports.
TISA President Kamil Hussein stated that they have agreed to the new tax revision at the Treasury meeting to assist government’s efforts aimed at protecting the local manufacturers and save foreign exchange for the state.
However he emphasised the need of safeguarding the ceramic ware import industry well established in this country while urging the government to abide by its decision to lift import restrictions.
Rush Lanka Group representative Shabir Iqbal divulged details of issues faced by construction industry stakeholders owing to short supply from importers and local manufacturers.
Sri Lanka construction industry and many people building or repairing their houses have affected due to sky rocketing of tile and sanitary ware prices following the government’s recent decision on tax revision.
Traders said prices have shot up because of the shortage. A 2×2-foot tile that was selling at Rs. 650 now costs Rs. 1,750 while an imported commode was selling at Rs. 22,000, but stocks were not available.