Cabinet approves duty-free offers to secure remittances from Lankans abroad

The Cabinet has decided to provide benefits to Sri Lankan citizens who are remitting their earnings back home, a Cabinet Minister said. 

At the Cabinet briefing held today, Minister of Labour and Foreign Employment, Manusha Nanayakkara stated that all had agreed to his proposals in the Cabinet. 

The first proposal is to increase the duty-free allowance for Sri Lankans in foreign countries, depending on foreign remittances sent to the country. 

The normal duty allowance is $187.50 for less than 90 days, $685 for a period within 90 and 356 days and $1750 for more than 365 days. 

Under the scheme, Sri Lankans in foreign countries are eligible for obtaining an increased duty allowance, based on the annual foreign remittance sent to the country. 

Sri Lankans who send at least $2400 are given a duty-free of $787 for less than 90 days, $1225 for 90 to 365 days and $2350 for more than 365 days, under the Silver category. 

Lankans who can remit at least $4800 are given a duty-free of $1175 for less than 90 days, $1585 for 90 to 365 days and $2710 for more than 365 days while those who remit at least $7200 are given a duty-free of $1627 for less than 90 days, $2065 for 90 to 365 days and $3190 for more than 365 days, under the Gold category. 

Sri Lankans who remit at least $12000 are given a duty-free of $2587 for less than 90 days, $3025 for 90 to 365 days and $4150 for more than 365 days, under the Gold Plus category. 

Sri Lankans who have sent at least $24000 are given a duty-free of $4985 for less than 90 days, $5425 for 90 to 365 days and $6550 for more than 365 days. 

This would be activated with the collaboration of the Ministry of Labour and Foreign Employment, the Central Bank and the Ministry of Finance while the foreign remittance is required to be sent to one’s own account, a joint account, a Rupee account or a Dollar account of Sri Lanka, according to the Cabinet memorandum. 

“The increased duty allowance can be obtained by not only workers working abroad but Sri Lankans living abroad as well,” Minister said. 

The Minister further thanked those sending foreign remittances to the country, stating that Sri Lanka is capable of purchasing necessities such as oil, gas and medicine due to it.

The Cabinet had also accepted another proposal to allow Sri Lankans who have sent over $3000 to the country, to purchase an electric motorcycle. 

The respective person can obtain an electrically powered two-wheel vehicle tax-free, for the amount that has been sent to Sri Lanka. Sri Lankans who remit over $20000 in foreign remittances are capable of importing an electronic vehicle under the price of $65000. 

However, the vehicle should have a driving range between 300 and 500 and should be powered by means of solar power. 

Accordingly, a solar panel should be imported or created by oneself, along with the vehicle, in order to minimise pollution, prevent the outflow of foreign currency and harm to the mainstream electric supply. 

While three-wheelers cannot be imported in this manner, the national electric system refrains from charging these vehicles. The foreign remittance is required to be sent to one’s own account or an account of a family member, the Cabinet memorandum said.