Sri Lanka aims for extra $188 mn from Gem & Jewellery Tax Reforms

Sri Lanka is aiming to generate an additional USD 188 million in revenue through reforms to the gem and jewellery tax system. This initiative is part of a broader effort to encourage tourists to spend more on Sri Lankan goods, particularly gems and jewellery. The reforms aim to streamline tax collection and potentially reduce taxes on exports to boost the industry’s competitiveness.

Minister of Industry and Enterprise Development Mr. Sunil Handunnetti stated that Sri Lanka expects to generate an additional USD 188 million in revenue by streamlining the tax collection system for the gem and jewellery sector. He made these remarks while inaugurating the new VAT refund counter at Bandaranaike International Airport (BIA) in Katunayake.

The special counter at BIA was established to refund VAT paid by foreign visitors who purchase goods in Sri Lanka and depart the country. This initiative aims to encourage tourists to increase their purchases of goods within Sri Lanka.