Tax reduction sees rise in mobile phone sales

Charumini de Silva

The reduction of import taxes has resulted in the increase in mobile phone imports during the past two months. There is a tremendous improvement in the mobile sales market and the industry will grow further compared to last year, Softlogic Communications Director/CEO, Samantha Rajapaksa told Daily News Business.

Sri Lanka’s overall performance has shown a steady growth in mobile phone sales over the past years. During the first quarter there was an increase of 20 to 25 percent compared to last year’s first quarter performance, he said.

Sri Lankan consumers are very price conscious. The most demandable price range is Rs 3,000 to 3,500 which is the low ended basic entry.

The newly introduced regulatory measures by the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) insists that all imports of mobile devices has to be approved as a genuine product by the TRCSL before it is introduced to the market.

This is an important initiative taken by the Government and will prevent illegal mobile phones being introduced to the market. “Earlier the grey market had an adverse impact and it was a challenge to the entire mobile phone industry,” Rajapaksa said.

Before the regulations were introduced many low standard and illegal branded mobiles were seen abundance in the market.

They caused various health factors especially with the radiation levels and the low standards of the sounds. Therefore, it is important to educate the public about these health factors, Rajapaksa said.

In other countries generally after using a mobile phone for one and a half years to two years the customers gives it for recycling. However, in Sri Lanka customers make use of their phone for at least three years. However, in Sri Lanka phone disposal is not popular among the public. Therefore, Softlogic will soon launch a program to collect the phones and recycle them.