Sri Lanka’s Finance Ministry allows private sector to hold warehouses to clear imported goods that are less than a container load
The Finance Ministry of Sri Lanka says the government has decided to allow privately-held warehouses to clear goods imported in less than a container load of cargo.
A statement issued by the Finance Ministry has stated that Finance Minister Mangala Samraweera had signed the gazette effective from October 1, 2018.
This will allow private sector bonded warehouses to clear LCL cargo for export and re-export, the Ministry has stated.
According to the Ministry, the license to establish these warehouses at a reasonable distance from the international port and airport can be obtained from the Finance Ministry for a Rs. 500,000 fee.
The government’s 2018 budget has permitted large scale pharmaceutical and dairy companies, and importers of garbage management equipment have been given permission to run bonded warehouses for such capital goods.
The Ministry has further added that tax relief has also been granted to these capital goods.
The decision by Sri Lanka’s Finance Ministry to allow the private sector to hold warehouses to clear imported goods that are less than a container load would result in a decline in the costs otherwise incurred by companies engaged in the export and re-export of goods. The tax relief granted to such goods is an added incentive. These measures would help attract investments in to the country’s private sector. Therefore, foreign businesses could explore the possibility of engaging in businesses in Sri Lanka due to the improvement in the ease of doing business environment in the island nation.
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