The Board of Investment of Sri Lanka (BOI) has denied imposing any export restrictions on a Singapore‐based manufacturing company, responding to public allegations that its operations in Sri Lanka were obstructed.
Issuing a statement, BOI officials clarified that no formal export bans or restrictions have been placed on the firm Honour Global Singapore.
The company in question, which was approved in December 2023 to produce and export certain products, remains fully authorized to continue its export activities, the BOI said.
However, the BOI emphasized that Sri Lanka, as a member of the World Trade Organization (WTO), adheres to the global rules‑based trading system. Under WTO obligations, member countries may investigate and apply trade remedies, such as anti‑dumping or countervailing duties, if domestic industries are threatened by unfairly subsidized or under‑priced imports.
BOI confirmed that discussions with the company, the Department of Commerce, and the Ministry of Trade, Commerce and Food Security centered on ensuring compliance with these WTO‑mandated trade safeguards, not on imposing restrictions.
The BOI’s clarification comes after the Singaporean company that had invested in a foam mattress manufacturing plant in Sri Lanka said it is considering shutting down operations, accusing the BOI of obstructing its operations.
Addressing the media, representatives of Honour Global Industries said permission was sought for the factory to annually manufacture around 2.5 million foam mattresses in Sri Lanka and export to various other countries, but some time after receiving the necessary approval in March 2024, the BOI had informed in writing that exports to the USA will be restricted to 50,000 mattresses per year.
“We cannot operate a factory for such a small number of mattresses. Both the BOI and the Monetary Board have been dragging this matter for the last six months. Almost 500 employees face losing their jobs due to this situation,” they added. (Newswire)
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