Laws to prevent export of scrap metal affecting local industry

SEATTLE (Scrap Monster): The Government has granted approval to enact legal provisions to prevent the export of scrap metal in a manner that harms local industries, with the aim of protecting domestic manufacturers in Sri Lanka, Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa said.

Speaking at the weekly Cabinet press briefing held yesterday (31), he stated that the export of scrap metal including iron, copper, aluminium, white iron, high-carbon steel, brass and cast iron as well as aluminium ingots, zinc ingots and copper wires, had initially been suspended following a Cabinet decision taken on November 9, 2020, to safeguard small-scale local manufacturers.

He further explained that Sri Lanka’s metal-based industries meet a portion of their raw material requirements through locally sourced scrap metal, while the remainder is fulfilled through imported metal ingots.

However, despite the existing export ban, certain parties have been circumventing the restrictions by misclassifying scrap metal and related products under various combined Harmonised System (HS) codes, using differing interpretations.

“This practice has led to a shortage of metal raw materials that could otherwise be supplied locally, thereby creating difficulties for domestic industries,” the Minister noted.

Taking these developments into consideration, the Cabinet of Ministers has approved the proposal submitted by the Industry and Entrepreneurship Development Minister to introduce the necessary legal provisions to prevent the export of scrap metal in a manner detrimental to local industries.

 Courtesy: www.dailynews.lk