Anti-dumping laws in the offing

Anti-dumping legislations to protect local industries against players flooding the market with cheaper foreign goods will be forwarded to parliament within the next 2-3 months, according to the Finance Minister Ravi Karunanayake.

“The anti-dumping laws have been in Parliament for the past 8-9 years. I have been informed by the Minister (Industry and Commerce) that it has got his consent and the Legal Draftsman’s so we can put it forward to Parliament in the next 2-3 months,” Karunanayake said.

The comments were made during the new regime’s second Doing Business Forum held to bring into light issues faced by the country’s private sector.

Ceylon National Chamber of Industries SecretaryGeneral Abeyratne Muthugala called for the implementation of the legislation as soon as possible.

“This problem is common to all. Many of our manufacturers are facing unfair competition in the market due to unethical business practices such as under-invoicing and dumping,” he said.

The initial Anti-Dumping Bill was presented to Parliament in 2006.

However, the Department of Commerce Director General Sonali Wijeratne noted that delays were experienced in gaining approval from Parliamentary consulting committees.

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She said efforts have been renewed since October 2014.

“The Acts relating to both anti-dumping safeguarding and countervailing actions are with the Legal Draftsman. Cabinet approval has been arranged, and it has been done in close co-orporation with the Legal Draftsman since October,” she said.

Wijeratne said that the Legal Draftsman Department has informed of recent delays in proceeding with the anti-dumping legislations, as legislations promised in the 100-day programme had to be passed.

However, it remains to be seen whether such an Act initiated by the previous regime is prudent, as Policy Planning and Economic Affairs Deputy Minister Dr. Harsha de Silva holds that protectionism will not help Sri Lanka become the most competitive economy in Asia; the foremost economic priority of the new regime. Further, Mirror Business recently reported that industries which have been calling for an anti-dumping legislation, such as the tile manufacturing industry, have themselves been importing and selling cheaper foreign goods to make big profits.

As a country with one of the lowest levels of productivity and relatively high labour costs, locally produced goods remain unattractive to Sri Lankan consumers.