Colombo Rubber Traders' Association warns of industrywide fallout from SVAT removal

THE Colombo Rubber Traders' Association (CRTA) yesterday issued an urgent warning on the severe and far-reaching consequences of the Government's decision to abolish the Simplified Value Added Tax (SVAT) scheme effective 1 October.

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Echoing the serious concerns raised by other leading export chambers, the CRTA warned that removing the SVAT without a tested and operational refund mechanism will trigger widespread financial distress across Sri Lanka's natural rubber industry, threatening smallholder livelihoods, Small and Medium Enterprise (SME) viability, export competitiveness, and foreign exchange inflows vital to the nation's recovery.

"Removing the SVAT in the absence of a functioning refund system risks plunging the entire value chain into chaos. The Government must act responsibly and decisively to prevent irreversible damage," CRTA Chairman Harin de Silva said.