The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Speaker, I thank you for the opportunity. Among the Gazettes relevant to today’s debate is Gazette No. 2400/25 dated 2024.09.05 under the Sri Lanka Export Development Act. We are debating the regulation today because, having been laid before Parliament, it must be approved within four months. It was previously tabled to be effective from January 2024.

¶ 02 A key issue relates to cement. When importing clinker used for cement production, we propose a cess reduction of Rs. 1 per kilogram, conditional on reducing the retail price of cement by Rs. 2 per kilogram, so that construction-sector users benefit. This is significant because high cement prices recently drove the construction industry into crisis. Under this measure, a 50 kg bag could fall by about Rs. 100 in retail price, which is a good, practical proposal.

¶ 03 However, the same Gazette also contained another element that concerns us: under restrictive conditions to earn foreign exchange and improve the livelihoods of black stone (kabook) quarry workers and communities, Cabinet on 2024.08.12 decided to permit the export of one million metric tons of black stone blocks as a pilot, with a cess of Rs. 1,000 per cubic meter. A previous Cabinet under the former Government had also considered a cess of Rs. 1,000 per metric ton on kabook exports. Our construction industry needs kabook domestically. I do not know whether there was an export proposal at that time. In any case, despite the decision, no exporter has come forward; there have been no applications. Yet, because the regulation would otherwise lapse, it is brought to Parliament now. Policy-wise, the Government should decide, considering domestic needs, whether to proceed with kabook exports. Legally, we must seek Parliament’s approval within four months. Accordingly, under the Sri Lanka Export Development Act, this regulation is presented today.

¶ 04 The cement price relief of about Rs. 100 per bag is already being reflected, with a bag now around Rs. 1,800. Today we also discuss Orders under the Special Commodity Levy Act. The SCL framework protects our farmers and consumers from the burden of VAT and other taxes. That is the core rationale.