Thursday, December 13, 2012

Colombo asked by New Delhi to cut levy on automobile import

Gossip9 News Sri Lanka > The Indian government is clearly unhappy over the decision of the Sri Lankan government to impose fresh import duty on automobile exports from India, The Hindu reports. New Delhi has indicated that it would explore the option through diplomatic channels to prevail upon Sri Lanka to bring down the import tariff as such a move could hit Indian vehicle exports to the Island nation. “India is mulling various options to  deal with the situation.

 One of the options is to approach purely diplomatically, and request the Sri Lankan Government because it is a win-win situation if they cut down the tariff,” Additional Secretary in the Commerce Ministry, Rajeev Kher has told reporters. The move by Sri Lanka is likely to hurt exports from India and has put the automobile industry in a quandary as Sri Lanka is very important market for the Indian automobile companies. “Sri Lanka is a very important market as far as cars and commercial vehicles are concerned. Obviously, we are concerned about it. We believe that the very substantial rise in import tariff in Sri Lanka is going to adversely affect our car exports to that country,” he added.

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