Electronics, Laptops, Printers Among the Most Imported Through Unauthorised Channels to Sri Lanka

Colombo, Sri Lanka, September 10, 2024: The grey market in Sri Lanka, particularly involving electronics, laptops, and printers, is becoming a growing concern for both the economy and legitimate importers. As consumers increasingly seek cheaper alternatives through unauthorised channels, the impact on tax revenue and local businesses is worsening.

The grey market involves the sale of genuine products through legal but unauthorised distribution channels, unlike the black market, which deals in illegal goods. This trend undermines legitimate businesses that pay import duties and offer after-sales services, making it difficult for them to compete with grey market dealers who evade taxes and tariffs.

The resulting loss of tax revenue, estimated in the billions of rupees, exacerbates Sri Lanka’s fiscal challenges, particularly during the ongoing economic recovery from the recent downturn. Consumers who opt for grey market goods face risks such as lack of warranties and potential exposure to counterfeit products, further eroding trust in global brands.

Legitimate importers are struggling with the influx of grey market alternatives, leading to potential reductions in foreign investment and job losses. To combat this, a comprehensive strategy involving stricter customs enforcement, better incentives for authorised importers, and consumer education is necessary. Without immediate action, the grey market’s growth will continue to threaten Sri Lanka’s economy and the integrity of its trade system.