Sri Lanka: 30,000 Jobs at Risk as Untaxed Aluminium Imports Threaten Local Industry
By Lions Roar News Industrial & Economic Desk
COLOMBO, SRI LANKA (Wednesday, January 21, 2026) — The Aluminium Fabricators Association of Sri Lanka (AFASL) has issued an urgent warning to the government, stating that over 30,000 livelihoods are under immediate threat due to policy loopholes that allow large-scale projects to import finished aluminium products tax-free.
In a recent press conference, the Association highlighted that the local aluminium industry—comprising five major manufacturers and over 2,000 small and medium-sized enterprises (SMEs)—is on the verge of collapse as foreign products flood the market under Board of Investment (BOI) concessions.
⚠️ The “Negative List” Loophole
The crisis stems from the BOI’s “Negative List,” a directory of goods that are prohibited from tax-free importation to protect local manufacturers. While the list was updated in 2013, it contains a critical omission:
- Included: Raw aluminium cladding with frames and aluminium extrusions (Category 4).
- Missing: Fully finished aluminium doors, windows, and curtain wall systems.
- The Consequence: Large developers are exploiting this gap to import finished systems duty-free under BOI incentives, depriving the state of massive tax revenue and stripping local factories of orders.
📉 Industry Operating at 30% Capacity
The impact of these untaxed imports has been devastating for domestic production:
- Idle Factories: Major local plants are currently operating at only 30% to 35% capacity.
- Shutdowns: Several smaller fabrication workshops have already been forced to close their doors.
- Job Losses: Beyond the 30,000 direct employees, the crisis threatens related sectors, including tempered glass, laminated glass, and double-glazing industries.
⚖️ Proposed Solution: HS Code 7610
The AFASL has been lobbying the government since May last year to close this loophole. Their demand is specific:
“Clearly include finished aluminium doors, windows, and curtain wall systems under HS Code 7610 in the BOI Negative List.”
The Association noted that while the Minister of Finance, Planning, and Economic Development, Anil Jayantha, and the Ministry of Industries have expressed support for the move, formal implementation by the BOI has yet to occur.
📊 Sri Lanka’s Aluminium Industry Profile
| Sector Component | Statistics |
| Major Manufacturers | 5 Large-Scale Companies |
| SME Workshops | 2,000+ Businesses |
| Total Workforce | 30,000+ Employees |
| Current Capacity | 30% – 35% Utilized |
| Target HS Code | 7610 (Doors, Windows, Frames) |
