WhoPping USD 100 Mn spent on polythene imports in 2022

Despite having a restriction on non-essential imports, Sri Lanka has spent nearly USD 100 million up to 2022 November to import polythene and polythene related raw material mainly from Dubai.

Due to this there is an oversupply of polythene in Sri Lanka which has also resulted in completely closing down the Sri Lankan ‘polythene recycling business’ which accounts to nearly 30% of the local requirement. This segment also employs around 3,000 people from around 60 companies and their livelihoods are now at stake.

Due to local polythene recyclers opting out of the industry major environmental hazard is looming as disposal of used polythene has become an issue. “Recyclers collect and buy used polythene from homes, factories and collectors and due to cheap imports this business will come to a standstill,” members of the Sri Lanka Polythene Recycling Association told media yesterday. “With no recycling happening, disposal of used polythene will pile up and soon become a major environmental issue.”

The association members also say that when most of the non-essential imports are regulated they were surprised as to why polythene imports were not regulated as there is an oversupply in the market and also drains around USD 100 million FOREX.

“Also it is very surprising that the import duty on polythene raw materials is around Rs. 10 when even some essential food items tax are over rupees 20 to 30. The total responsibility for this has to be taken by the Central Environmental Authority (CEA) which has turned a bliend eye towards regulating the imports and saving around USD 100 million to Sri Lanka.”

The CEA way back in 2020 was in a major hurry to ban some polythene material used for the food industry. However its highly questionable as to why that enthusiasm is not being shown by the CEA towards the curtailing the free flow of polythene imports.’

The association said that what the government should do is to have a temporary ban on polythene imports as Sri Lanka has had an adequate supply of polythene for almost one year. “The government can also look at imposing a higher tax for polythene imports which will reduce the supply.”

At a time when schoolchildren’s books are heavily taxed in order to collect revenue, instead of such harsh decisions, the government can look at these avenues of collecting revenue which can be done easily without affecting the already battered general public.