New Duty Free Allowance Scheme in Sri Lanka Based on Foreign Remittance

Admin | 02 Aug, 2022 09:24AM | Leave a comment
The Cabinet of Sri Lanka has approved the proposal to provide an extra Duty Concession Allowance for Sri Lankan migrant workers based on the amount remitted through official banking channels.

The provided allowance can be utilised upon arrival of the migrant workers in Sri Lankan airports.

The government of Sri Lanka is increasing the allowance to encourage migrant workers to increase the remittances made through official banking channels in the hope of finding a solution to the foreign exchange crisis in the country.

A committee was appointed as per the decision of the Cabinet of Ministers on 27.06.2022 to study the data and make recommendations regarding the relief and incentives to be given to the migrant workers. The Cabinet then approved the proposal presented by the Minister of Labour and Foreign Employment Manusha Nanayakkara to provide an additional Duty Concession Allowance for migrant workers according to the amount remitted through banking channels.

The table below explains the new Duty Concession Allowance suggested depending on the on the amount remitted through official banking channels. Under the current allowance system, a duty concession allowance of US$ 187 was provided to Sri Lankan migrant workers who returned to the country within a period of 90 days. Migrant workers returning to Sri Lanka between 90-365 days were provided with an allowance of US$ 625, while those returning after over a year were given an allowance of US$ 1750.

The new concession system has 5 new categories depending on the amount remitted.
1. Remitting US$ 2,400 within a period of one year (Silver Category)
2. Remitting US$ 4,800 within a period of one year
3. Remitting US$ 7,200 within a period of one year (Gold Category)
4. Remitting US$ 12,000 within a period of one year (Gold Plus Category)
5. Remitting US$ 24,000 within a period of one year

Time Spent out of Sri LankaExisting Allowance$2,400 within one year$4,800 within one year$7,200 within one year$12,000 within one year$24,000 within one year
90 DaysUS$ 187US$ 787US$ 1,175US$ 1,627US$ 2,587US$ 4,985
90 - 365 DaysUS$ 625US$ 1,252US$ 1,585US$ 2,650US$ 3,025US$ 5,425
More than 1 YearUS$ 1,750US$ 2,350US$ 2,710US$ 3,190US$ 4,150US$ 6,550

So following the new Cabinet decision, those who have remitted US$ 2400 within a period of one year via official banking channels will be included in the Silver category. Under this category, those who are returning within 90 days will be provided with an allowance of US$ 787, those returning within 90-365 days US$ 1252, and those after a period of one year US$ 2350.