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The Sri Lanka Electronics Manufacturers and Exporters Association views with some degree of concern the Year 2002 Budget proposal which levies a 1% charge on the declared CIF value of all cargo imported into Sri Lanka, said S. M. Gooneratne, President, Sri Lanka Electronic Manufacturers and Exporters Association (SEMEA). The electronics industry imports virtually 100% of its requirement of electronic components and parts for value addition and re-export.

The imposition of a 1% levy on such raw materials which are imported for re-export leads to an unnecessary cost escalation of the industry's exports.

This cost escalation has to be viewed in the background of a harsh global economic environment which has led to a shrinkage of our markets, heightened by the emergence of mainland China as the centre of global electronics assembly and manufacture. Our industry is finding it increasingly difficult to compete on pricing with export from China. The budgetary levy of 1% on imports therefore casts an unbearable additional cost on our industry.

We therefore seek your intervention to obtain exemption from this levy for raw materials being imported for value addition and re-export, Mr. Gooneratne said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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