The Macro Policy Division is primarily engaged in providing policy support for industrial development with a special focus on growth and international competitiveness of the industry. In performing these tasks, the Ministry needs to interact with public sector organizations and bilateral and multilateral agencies. It is a highly complex process and requires continued monitoring and following up with various stakeholders in industry. Considering the importance of maintaining a stable and predictable macro economic environment conducive for the growth of manufacturing sector, the Division prioritized its macro policy support in following areas.
Issues Related to Tariff Policy
A major function of this Division is the active participation to eliminate/minimize tariff anomalies/issues raised by the various industrialists, chambers of commerce and industry and trade associations. A thorough evaluation of those requests is carried out through surveys, investigations and recommendations are sent to the Trade and Tariff Cluster of the National Council for Economic Development (NCED). This process also includes comprehensive studies on value addition and revenue implications.
Apart from addressing anomalies and requests submitted by industrialists, the Division is also involved in assisting to relevant authorities in proposing medium to long-term tariff policy. Accordingly, the broad tariff policy framework prevailing at present consists of five bands.
0% - Essential goods and raw materials
5% - Semi-processed raw materials
15% - Intermediate inputs (Processed raw materials with a domestic production base)
30% - Finished Goods
Promoting International Trade
Due to the strong linkage between trade policy and industrial policy, the Division plays an active role together with the Ministry of Trade, Commerce and Consumer Affairs in order to make maximum use of free trade agreements for the benefit of the industrial sector of the country. Facilitating the local industrial sector to penetrate into the export market through bilateral and multilateral trade agreements is the main objective.
Trade Agreements signed by the Country
- Indo-Sri Lanka Free Trade Agreement (ISFTA)
- Pakistan-Sri Lanka Free Trade Agreement (PSFTA)