ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe raised Special Commodity Levy (SCL) of a raft of products including yogurt, butter, big onion, apples, oranges, and some fish from December 1 after the island nation could not achieve the revenue target in committed in line with an International Monetary Fund.
The IMF after concluding the Staff Level agreement in October said the 2023 revenue may see a 15 percent fall. The global lender is yet to approve the disbursement of the second tranche of $3 billion Extended Fund Facility (EFF).
The President who is also the Finance Minister through a gazette raised the Special Commodity Levies of yogurt and diary products by 2,000 rupees per kilogram, butter by 1,500 rupees, big onion by 10 rupees, dates, apples, grapes, oranges by 600 rupees a kilo.
The SCL for sardine, tuna, salmon, and mackerel are also increased by 200 rupee a kilo.
The move will remain in place until the end of 2024, the gazette notification showed.
Market analysts say the move will raise the prices of select products as well as the alternative to the select products, but unlikely to contribute for a spike in inflation. (Colombo/Dec 2/2023)