SRI LANKA
SUBSIDY PROGRAMS: GENERAL
Last Reviewed December 31, 2000
Effective February 15, 2000, Import Administration began publishing "Decision Memos" to reduce the size of antidumping and countervailing duty Federal Register notices. In cases in which a decision memo was published, you will find a link to the memo listed below.
In addition, in the following programs, in instances below in which a proceeding was a Sunset Review, you will see the letters SR after the product name.
COUNTERVAILABLE SUBSIDY PROGRAMS
The subsidy programs listed below have been investigated by the Department and have been
found to be "countervailable" based on the criteria established in the Tariff and Trade Act of
1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition,
you may click on the cases listed below the subsidy program title for a full explanation of the
Department's analysis in those cases.
Export Development Board (EDB)
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
The Export Development Act No. 40 of May 1979 created the Sri Lanka Export Council of Ministers and established the Sri Lanka EDB.
The EDB created an original Export Expansion Grant Scheme in 1981, and devised another Export Expansion Grant Scheme in 1983.
Through this 1983 Scheme, firms may apply for grants to be used for export-oriented projects. Funding for the Export Development Grant Scheme comes
from the Export Development Fund (EDF), which is administered by the EDB. Producers and exporters receive tax-free export expansion grants. We
determined that the tax-free export expansion grants stimulate the production for export of the subject merchandise and therefore, provide a
countervailable benefit.
Export-Related Corporate Tax Exemptions for Non-Zone Companies
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
Companies not located in the Investment Promotion Zones, which are engaged in the manufacture and export of textile mill products and apparel,
other than apparel under quota, are eligible for a five year tax holiday related to their export profits. In order to receive the tax holiday,
an apparel company must apply and receive approval from the Minister of Finance Planning. We determine that these exemptions of corporate
income tax are countervailable because the program is limited to exporter
Investment Promotion Zones
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
Firms that are located in Investment Promotion Zones (IPZ) receive the following benefits: corporate tax exemptions or tax holidays, and
import duty exemptions on machinery, equipment, and materials. We find no countervailable benefits with respect to duty exemptions on imported raw
materials. However, we determined, regarding these exemptions of corporate taxes and of import duties on plant and equipment, that these
exemptions are countervailable because the IPZ program operates to stimulate export sales over domestic sales.
Pre-Shipment Export Financing Program
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
The Central Bank of Sri Lanka operates a refinancing program through which exporting firms also receive short-term working capital loans under the pre-shipment export refinancing program. Only exporters are eligible for such refinancing.
Because these loans are intended to stimulate exports, we determined that they confer bounties or grants if they are provided at preferential
rates.
Rebate of Import Duties and Indirect Taxes
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
The government of Sri Lanka operates two separate programs that rebate import duties and indirect taxes. One applies to textile mill products and the
other to apparel. We determined that the customs duty rebate program for apparel is designed to rebate import duties and indirect taxes, and is therefore countervailable.
SUBSIDY PROGRAMS FOUND TO BE NOT COUNTERVAILABLE
The subsidy programs listed below have been investigated by the Department and have been
found to be "not countervailable" based on the criteria established in the Tariff and Trade Act
of 1930, as amended. Please refer to this Act for further detail of the criteria applied. In
addition, you may click on the cases listed under the subsidy program title for a full
explanation of the Department's analysis in each case where the subsidy program has been
examined.
Textile Self-Sufficiency Program
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final)
The government of Sri Lanka does not administer a textile self-sufficiency program. The government, through the
Ministry of Textile Industries, owns a number of textile mills engaged in the production and sale of cotton and
synthetic textile products; however, none of the output of these mills is exported to the United States. We
determined that no countervailable benefits are being provided to the selected producers and exporters of the subject merchandise through
government-owned mills or through Salusala and that the government has not provided any assistance to the selected producers and exporters for
improvement of existing mills or construction of new mills.
SUBSIDY PROGRAMS THAT HAVE BEEN TERMINATED
The subsidy programs listed below have been investigated by the Department and have been
found to have been terminated based on the criteria established in the Tariff and Trade Act of
1930, as amended. Please refer to this Act for further detail of the criteria applied. In addition,
you may click on the cases listed below the subsidy program title for a full explanation of the
Department's analysis in each of these cases.
No programs listed.
SUBSIDY PROGRAMS THAT HAVE NOT BEEN USED
When potential subsidy programs are investigated and found not to be used by the companies
being investigated, the Department makes no determination as to their countervailability. If
you click on the cases listed under the subsidy program title, you will be linked to each case in
which the subsidy program was referenced.
Medium- and Long-Term Credit Fund
Certain Textiles (4/83-3/84) 49 FR 49687 (12/21/84-prelim); 50 FR 9826 (3/12/85-final) not used
The Central Bank of Sri Lanka provides medium- and long-term refinancing for export-related investment.
The refinancing program for medium- and long-term loans is operated by the Central Bank of Sri Lanka through the development and commercial banks.
Development and commercial banks may apply for refinancing of medium- and long- term loans for export-related investments under the Government's
Medium- and Long-Term Credit Fund (MLCF) program.
SUBSIDY PROGRAMS DETERMINED NOT TO EXIST
The following subsidy programs were alleged by the petitioning industries and were
investigated by the Department. However, during the investigation we found no evidence that
such programs actually existed. If you click on the cases listed under the subsidy program title,
you will be linked to each case in which the subsidy program was referenced. It is possible
that, while the program named did not exist, a similar program having a different name
actually was investigated. If this is the case, you will find that program listed elsewhere in this
library.
No programs listed.