Sri Lanka, Jan. 31 -- While commending the move to defer the removal of SVAT, the Planters' Association of Ceylon (PA) said that smallholders and all growers will have to forego an additional 18% off their cost of production.

The cumulative annual loss to the industry is estimated at almost LKR 24 billion. PA had noted the importance of postponing SVAT beyond April 2025 earlier, and any further extension by the government would be a boon to the already burdened industry. The SVAT system has been a cornerstone of stability for Sri Lanka's plantation sector since its introduction in 2011, ensuring financial liquidity for Regional Plantation Companies (RPCs) and safeguarding the livelihoods of smallholder tea farmers. The retention of SVAT ...