Special Commodity Levy on Imported Sugar Hike From Today

The special commodity levy on imported white sugar has been increased to Rs 2 per kg and Rs 15 per kg on raw sugar with effect from today (16). The maximum retail price of white sugar will continue to remain at Rs 95 per kilogram. The Government had previously decided to reduce the special commodity levy on imported sugar.

Accordingly, the previous special commodity levy of Rs.30 per imported kilogram of sugar was reduced to 25 cents on 18th  July 2016.  Sri Lanka annually imports 650,000 metric tons of sugar or 92% of its total requirement. The domestic produce is reported only as 56,000 metric tons or 8% of the total requirement. The government had earned gross annual revenue of Rs 19,500 million from special commodity levy on the sugar import, however this revenue income reduced to mere Rs 162.5 million consequent to the reduction of special commodity levy on imported sugar.  The per capita consumption of sugar in Sri Lanka is 31 kilograms.