BOI Clarification on the views expressed by (Representatives of) Honor Global Singapore, during the media briefing held on June 18, 2025.
The above mentioned company submitted an investment application to BOI on 9th December 2023, to manufacture and export mattresses to multiple countries.
As a member of the World Trade Organization (WTO), Sri Lanka has an obligation to adhere to the global rules based trading system established by the WTO, and all trade related activity are subject to the same.
Accordingly, WTO member countries has a duty to align its trade practices in line with the WTO Anti-Dumping Agreement, under which, Anti-dumping and Countervailing duties may be imposed against the exporting country, when a manufacturer exports goods to a foreign market at a price lower than their market value, often below the price in the exporting country’s domestic market or below the cost of production, causing material injury to the domestic market of the importing country,
This practice aims to maintain the market prices and stability of the domestic market of the importing country, preventing the collapse of businesses engaged in the relevant product or service. Anti-dumping duties, are imposed against companies allegedly “dumping” their products, to offset the unfair competitive advantage gained by the exporting company and to protect domestic industries from injury caused by such dumping.
Therefore, Sri Lankan exporters are obliged to comply with these rules, respect the anti-dumping regulations of the countries to which they export, and avoid trade-distorting practices.
(1) In line with the above, the Board of Investment of Sri Lanka (BOI), the Department of Commerce, and the Ministry of Trade, Commerce, and Food Security held discussions focused on the following:
- (i) The ability of the relevant company to export its products to a particular country in large quantities and at prices below the domestic market prices and the cost of production.
- (ii) As a result of this, the possibility of triggering investigations and imposition of Anti-dumping and Countervailing duties on local exporters currently exporting from Sri Lanka.
- (iii) The impact on the market of local export manufacturers, in the event such adverse duties are imposed.
(2) Drawing conclusions from above, several rounds of discussions were held with the management of the company in question with respect to its investment application submitted in 2023. During these discussions, it was informed to the company that there had been a tendency for governments of stated export destinations to impose Anti-dumping and Countervailing duties, which would in return risk the collapse of export business of local manufacturers. The company was requested to ensure that it would not act in such a manner, to result in such imposition of duties.
Subsequently, the company in writing informed BOI that manufactured mattresses would only be exported to other countries selected by this investor and countries approved by the BOI, other than those countries where anti-dumping and countervailing duties had been imposed.
In the same letter, the company further requested that the BOI grant permission for this project subject to the condition that it would manufacture and export mattresses to countries, other than those with a tendency to impose restrictions.
The company stated its anticipation that it would be permitted to export its products at a later stage to countries with concerning issues on anti-dumping duties, after resolving such issues.
(3) Considering the circumstances, the BOI, under Section 17 of BOI Law, granted permission for the company to manufacture mattress for export market. The agreement clearly stated that the mattresses shall be exported to countries where anti-dumping concerns have not been raised. In particular, this principal agreement clearly stipulates that the company cannot export to countries with possible Anti-dumping restrictions.
(4) The company, in June 2025, informed BOI that the total number of employment of the company was 130.
(5) As per the supplementary agreement entered into by the company in 2024, the company was aware of the volume they are permitted to produce and export to countries with possible Anti-dumping restrictions. It is emphasized that the BOI has not imposed any export restrictions on the company with respect to exports to any other country.
The Board of Investment of Sri Lanka, when dealing with investors, constantly strives to thoroughly investigate all investment applications and provide maximum support to ensure the success of their projects. We welcome both local and foreign investors visiting the country, and our institution is always ready to provide support to take their businesses forward.