Press briefing of Cabinet Decision taken on 2016-08-23

Liberalization of Bitumen Trade

- There is a continuously increasing market for bitumen which is used as a raw material for construction of highways, and other construction work. Since bitumen is used for construction of new highways as well as for regular maintenance of the road network in Sri Lanka, a sustainable market has been created for same. It is also observed that there is an emerging market for bitumen in the region as well as in other developing countries. Therefore, through liberalization of the bitumen trade, an opportunity will arise for Sri Lanka to emerge as the regional supplier. Accordingly, the following proposals made by Hon. Ravi Karunanayaka, the Minister of Finance, for the implementation of the Budget Proposal 2016 presented with a view to liberalizing the bitumen trade and creating a competitive market in Sri Lanka, was approved by the Cabinet:

(i) make regulations and policies for liberalization of bitumen imports;

(ii) issuance of license for imports by listing 'bitumen' as an item under the Import and Export (Control) Act;

(iii) instruct the Sri Lanka Standards Institute (SLSI) to introduce national standards for bitumen in line with international standards;

(iv) instruct the Industrial Technology Institute (ITI) and the Road Development Authority (RDA) to upgrade and accredit their laboratory facilities for issuance of quality conformity certification for bitumen; and

(v) charge an annual fixed registration fee of Rs.2 million on bitumen trade from the license holders.