Tokyo Cement Company (Sri Lanka) has called on the Sri Lankan government to fix an alleged policy mismatch resulting in what managing director SR Gnanam described as market distortions: cement imports are duty-free, but domestically manufactured cement is subject to price controls.
There are also reported to be concerns of cheap, low-quality cement imports that lead to reduced building safety.
The previous government of former President Mahinda Rajapaksa removed the import tariffs in December 2014 to encourage infrastructure development, while the next one under President Maithripala Sirisena placed price controls the following year to reduce housing costs.
Gnanam criticised the government for sudden, unilateral pricing decisions taken without consulting the industry despite the presence of an existing pricing formula.
