August 2, 2006

Sri Lanka may lift restrictions on poultry in August

Sri Lanka may lift restrictions on poultry imports from August, if it gets the approval from the World Organisation for Animal Health (OIE), health authorities said Tuesday (Aug 1).

Sri Lanka would import poultry from any country approved by the OIE, said Dr. S K R Amarasekara, Director General of the Department of Animal Production and Health.

The Department expects approval from the world animal health body by Aug 10.

Sri Lanka imposed controls on imports of poultry and poultry related products from countries hit by bird flu in 2004, but has since begun relaxing them.

Controls on imports from India, including poultry feed like corn, were removed last month. Sri Lanka imports 90 percent of its corn requirements from India. There had been some delays due to sporadic outbreaks in India, authorities said.

Meanwhile, the poultry industry is also lobbying the government to reduce a 15 percent Value Added Tax (VAT) on chicken to about 5 percent. The country imposes the tax on the production and sale of day-old chicks, poultry feed and broiler chicken as well as processed chicken.

Taxes make up almost 10 percent of the cost of chicken.

The Association also wants a 20 percent levy on poultry feed removed.

Sri Lanka's poultry industry is worth an estimated 84 billion rupees (US$1.8 billion).