Sri Lanka’s new trade protection regulations, approved this week by Parliament, have sparked fierce opposition from local importers, who warn that the measures could force them to shut down their businesses altogether. The contentious rules, introduced under the Anti-dumping and Countervailing Duty Act No. 2 of 2018, aim to protect local producers from what the government calls “unfair trade practices” and an influx of low-priced imports.
The regulations were formally endorsed during a joint meeting of the Parliamentary Committees on Trade and Public Finance, chaired by Labour Minister Wasantha Samarasinghe and opposition MP Dr. Harsha de Silva. The updated rules were previously gazetted in Extraordinary Gazette No. 2429/32 dated 27 March 2025.
Officials argue the move is essential to shield domestic industries from foreign competition, saying it would “provide relief regarding damages and threats caused by unfair trade activities and sudden imports.” These measures include the imposition of additional tariffs or restrictions on imported goods suspected of being dumped into the Sri Lankan market at below-market prices.
However, the decision has triggered a backlash from importers, especially those dealing in ceramic tiles, who claim the government’s actions favor a small group of influential businessmen at the expense of the broader importing sector. Some allege that the local tile industry is dominated by a handful of powerful individuals—including a prominent casino owner—who import raw materials, conduct minimal processing, and sell products under the label of “value addition.”
“These regulations are not about protecting an industry. They’re about protecting a monopoly,” said one importer, speaking anonymously due to fears of political repercussions. “Dozens of legitimate businesses will be wiped out just to safeguard the profits of two or three well-connected manufacturers.”
Importers also point out that Sri Lanka lacks the capacity to meet local demand for tiles, which will likely lead to a supply shortage, price hikes, and further strain on the construction sector already grappling with high costs.
The meeting also briefly addressed concerns in the cooperative sector, where it was revealed that no formal loan provision currently exists for cooperative societies. Minister Samarasinghe called for a formal inquiry into this issue and proposed summoning provincial commissioners and governors for a special parliamentary session.
As the government pushes forward with its trade defense agenda, calls are growing louder for a balanced approach that safeguards local production without strangling legitimate import-driven enterprises
