Colombo, Aug 21: The Sri Lankan government plans to reduce its current 20 per cent import surcharge to boost trade, officials said today. “We are moving toward a lower standardized tariff structure as part of a pro-trade package,'' treasury secretary Charitha Ratwatte told a seminar on tariff and trade policy.

Central Bank governor Amarananda Jayawardena also said lower tariffs would foster trade and boost economic growth.

“High protection for domestic production creates inefficiencies, prevents innovation in exports, fosters monopolistic conditions and ends up a tax on consumers,'' he said. Neither official indicated how much the tariff would be reduced.

Bureau Report