Idea to import Chinese cigs has officials in quandary

Finance Minister Mangala Samaraweera’s announcement last week that his Ministry was considering allowing the import of foreign cigarettes, especially from China, has stirred up a hornet’s nest within Government.

The National Authority on Tobacco and Alcohol under the Finance Ministry stated it was opposed to this decision, adding that Health Minister Dr. Rajitha Senarathne would be taking up the matter for further discussion. 

Speaking to Daily FT yesterday, National Authority on Tobacco and Alcohol in Sri Lanka Chairman Dr. Palitha Abeykoon said he wouold meet Dr. Senarathne further on the matter this week, adding that there was no change in the policy of the Government so far with respect to cigarette imports. “This is not a good idea and given all the effort,” he added. 

The Finance Minister said last week that imports from China would be given preference due to the large number of Chinese nationals involved in development projects all over the country, in addition to tourists. Over 6,000 Chinese nationals are believed to be engaged in projects in Sri Lanka. 

Questions have also been raised in some quarters that if cigarette imports are allowed for Chinese nationals in Sri Lanka, the Government would then also have to consider allowing imports for Indians, as there is an equal or larger number of Indians engaged in employment here. 

Over 600 million cigarettes are smuggled into the country resulting in over Rs. 20 billion in losses to the Government. Whilst the Finance Ministry envisages that this move could potentially help cut losses, the large volume traded and significant price advantage enjoyed by Chinese products could hamper this objective as it would also become difficult to monitor.