Preference Foreign Owned Brands to Sri Lankan Owned Brands in Sri Lanka

Preference Foreign Owned Brands to Sri Lankan Owned Brands in Sri Lanka.

The proposed withdrawal of preferential tariffs against foreign-owned brands in Sri Lanka has caused an uproar in the country's tea industry. While European retailers are remaining relatively quiet about the proposed move, they are likely to continue sourcing their product from Sri Lanka in the future. It is unlikely that they will, given that Sri Lankan products will be priced at 9.6% more than their European counterparts.

While the Sri Lankan tea industry is facing a crisis, many traders are calling for the country to become a 'tea hub' and are appealing for the government to change its laws to permit multi-origin packaging. But long-standing tea producers say that allowing free imports of any tea will not only undermine the premium Ceylon Tea brand, but it will also threaten the livelihoods of two million Sri Lankans.

A lack of reliable data on consumer preferences for Sri Lankan brands makes it difficult to determine whether a market is dominated by foreign or domestic companies. Fortunately, the Generalised Scheme of Preferences (GSP) has helped to make Sri Lanka one of the few countries that benefits from a free trade agreement. This GSP has helped the country's economy by facilitating foreign investment in the past.

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