Chairman’s Message

Mr. Thulitha Mendis
Chairman’s Message
The year 2023/24 has been a period marked by significant challenges and noteworthy developments for the import sector. The relaxation of restrictions on most imports in October, with the exception of the automobile segment, marked a pivotal moment. This policy shift provided much-needed relief and stability to the sector. Concurrently, a decline in inflation and interest rates enabled banks to commence lending at lower rates, thereby stimulating economic activity.
The appreciation of the Rupee by approximately 10% during the year positively impacted importers, reducing the cost burden and enhancing trade efficiency. Improved liquidity in foreign exchange further bolstered the trade environment, facilitating smoother transactions and financial planning. However, the increase in VAT presented a challenge for consumers already grappling with low disposable income levels.
Illegal and grey market activities persisted at high levels, driven by the cost disparity between legitimate imports and goods smuggled evading taxes. Addressing this issue remains critical to ensuring a fair and competitive market landscape.
The government’s engagement in new trade agreements highlighted the need for greater understanding and collaboration with border agencies. This cooperation is essential for safeguarding consumers while supporting legitimate importers. In this context, the Imports Section of the Ceylon Chamber of Commerce played an active role. We engaged with border agencies and government authorities to educate membership and community on leveraging on these agreements. Furthermore, the Import Section submitted a concept paper aimed at implementing the National Quality Council & Secretariat in alignment with the National Quality Infrastructure & National Quality Policy, as stipulated by Act No. 32 of 2005. With the government entering into various free trade agreements, having a robust national quality infrastructure and national quality policy is crucial to ensuring that our trade standards meet international benchmarks.
The ongoing crisis in the Red Sea region has posed significant challenges to global trade, leading to disruptions and delays. This situation has been exacerbated by the escalation of freight costs, which have significantly impacted the operational aspects of businesses. The increased cost of shipping has added a substantial financial burden on finish goods and intermediate goods importers, affecting their pricing strategies and overall competitiveness.
In response to these challenges, the importance of greater collaboration and engagement with border agencies cannot be overstated. The Imports Section of the Ceylon Chamber of Commerce has been proactive in working with these agencies and authorities to find amicable solutions that expedite transactions and facilitate trade. One of our key initiatives has been promoting the adoption of National Single Window process and digital platforms to provide greater visibility and streamline procedures, making it easier for businesses to navigate the complexities of international trade.
Our efforts in the year 2023/24 have been directed towards creating a more resilient and responsive import sector. By fostering collaboration, advocating for fair policies, and addressing the challenges faced by our members, we have laid the groundwork for sustained growth and stability in the years to come.
I would like to extend my heartfelt thanks to the Committee and the Ceylon Chamber of Commerce Secretariat for their unwavering support throughout the past year. Their efforts have enabled the Imports Section to have greater engagements with government agencies and our membership, to foster a more collaborative and effective environment for all stakeholders.
Looking ahead, we remain committed to supporting our members, navigating the complexities of the global trade environment, and advocating for policies that promote a fair and competitive market. Together, we will continue to drive progress and prosperity in the import sector.