The Sri Lankan government agreed to cut the taxes on raw rubber exports from Rs15/kilo to Rs4, according to recent reports. This is an attempt to increase rubber prices by also increasing the competition between raw rubber exporters and domestic rubber producers.
According to Media Minister GayanthaKarunatillake, 80% of the natural rubber grown in the island is consumed by domestic industrialists while the remaining 20% is exported.
Karunatillaketold a news conference that the reduction of rubber prices in the world market has also lowered the prices of Sri Lankan rubber, driving rubber planters and small estate owners into difficult situations.
Plantation Industries Minister NavinDissanayake proposed to give rubber planters a relief through the increase of rubber prices by creating a more competitive market between exporters and domestic producers. This proposal has been approved by the Cabinet of Ministers. Rubber prices are also forecasted to remain low until 2020.
Source: Economy Next