ISLAMABAD: Sri Lanka has reversed its decision of increase in cess on the import of kinno. The move is expected. Pakistan has been a leading and steady supplier of quality mandarins to the Sri Lankan market in recent years.

Last month, Sri Lanka had suddenly imposed an increase in cess on imported mandarins from LKR30 per kg to LKR160 per kg — an increase of LKR130 — which made kinno imports from Pakistan almost four times costlier for the country.

An official statement by the Ministry of Commerce termed the decision a positive development which will further promote and enhance bilateral trade. Although the tax was imposed on all imported kinno/mandarins, the move particularly affected Pakistan as the citrus cultivar is a concessional item under the Pakistan-Sri Lanka Free Trade Agreement (PSFTA).

Moreover, the citrus season in the country had just commenced and this development had placed export orders in immediate jeopardy. The Pakistan Fruits and Vegetables Association (PFVA), exporters and Sri Lankan importers had also expressed their concerns in this regard and requested intervention of the Sri Lankan government.

The commerce ministry through its Trade & Investment Attaché in Colombo Asma Kamal immediately took up the matter with the concerned authorities in Sri Lanka in order to expedite an amicable resolution of the matter.

Published in Dawn, December 19th, 2020