The Exporters Association of Sri Lanka (EASL) last week welcomed the government’s decision to keep the system of Suspended Value Added Tax (SVAT) unchanged.

“Prior to the implementation of the SVAT system, Exporters experienced serious difficulties including  cash flow issues, which constrained in multiple ways, their capacity to trade, and compromised their ability to perform,” the EASL said in a statement.

Since 2016, when the sudden proposal to abolish SVAT was announced, the EASL, along with other export industry stakeholders, made collective representation to the government at the highest level, to articulate the importance to continue with the SVAT system. Exporters are convinced that the current SVAT scheme works seamlessly, efficiently and contributes significantly to reduce the cost of doing business for both Direct and Indirect Exporters.