Govt. to relax some restrictions on BOI companies
The Ministry of Development Strategies and International Trade says the government of Sri Lanka plans to further liberalise the country’s economy and provide consumers a better choice by relaxing restrictions on domestic sales by export-oriented manufacturers registered under the BOI, who areprovided with incentives like tax concessions.
Currently, BOI rules stipulate that companies registered under it can only sell 10% of their total production to the domestic market making it compulsory to export 90% percent of its output.
However, as claimed by the Ministry, this rule may be relaxed in future making it possible for BOI registered manufacturers to release20% -30%of their total output to the domestic market by way of local sales so that Sri Lankan consumers have the ability to purchase quality original products at reasonable prices.
Whilst this proposed liberalisation will benefit domestic consumers, it will also enable manufacturers to target Sri Lanka’s growing consumer population which appears to have a significant amount of disposable income, thereby targeting an as yet untapped market.
There are opportunities for companies that may wish to avail themselves of this proposed move by entering in to Sri Lanka’s retail market.
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