EXPORT POLICY, REGULATIONS AND PROCEDURES
Liberalized policy based on export-led growth was introduced in 1977 in order to have better resource allocation based on comparative advantage and to take advantage of the diffusion of technology and learning. The export sector now receives the highest priority in foreign trade policy in order to have a health balance of payments position and for general economic expansion.

Recently, exports of traditional agricultural products such as tea, rubber and coconut had limited capacity for trade expansion with a tendency to decline markedly in value and sometimes in volume as well. For this reason, export duties have been reduced on tea and coconut in order to assist producers. There are duty reduction for all marine products which would have been subject to 5 per cent duty, but now have been exempted. Similarly, flexible floor price schemes are abolished.

The Government has pursued a policy of export diversification with notable success to enhance the share of export value earned by the three traditional crops and increase the industrial exports. Industrial Exports on Garments have increased their share 28% to 33% of total exports during the past period.

Other institutional barriers to export growth for garments through quota restrictions in many developed countries, has increased substantially trade with the United States, for example The United States currently provides the market for one Fourth of all garment exports from Sri Lanka.

EXPORT APPROVAL
All exporters of articles of commercial value are required to register with the Sri Lank Export Development Board, (EDB). Exporters must submit a completed form, EDB 1, to the Board. Registration renewals must be completed before 31 January each year. Every exporter is required to indicate his registration number on the EC/EXP/I Form.

There are several controlling authorities whose approval is required for exporting. The Tea and Rubber Control Departments and Coconut Development Authority assist exporters to ensure that the maximum price is obtained for the exports. The Geological Survey Department controls export of silica as large-scale exports could deplete this national resource. Fish exports, including prawns and shrimps, are verified by the Fisheries Department and Garment Exports are verified by the Ministry of Textile Industries.

All exporters are advised to adhere to the requirements as warranted by the EDB.

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