Sri Lanka’s Cabinet has approved legal provisions to permanently ban the export of scrap metal, formalising an earlier temporary suspension aimed at protecting domestic industries.
Minister Nalinda Jayatissa announced the decision, stating that some parties had been exporting scrap metal and counterfeit metal-related products under different HS codes, creating a shortage of locally sourced raw materials for manufacturers.
Materials Covered
The ban covers a broad range of metals including iron, copper, aluminium, white iron, high carbon iron, brass, china plate, aluminium ingots, zinc ingots, and copper wire.
Protecting Small Manufacturers
Local manufacturing industries, particularly small-scale operations, depend partly on domestically sourced scrap metal as a raw material input. The government determined that metal exports were depleting supplies needed by these producers, pushing up costs and threatening viability.
The move comes as global metal prices face upward pressure from Middle East supply chain disruptions and the broader commodity volatility linked to the Strait of Hormuz closure. A prior Cabinet decision had already suspended scrap metal exports as a temporary measure; the March 31 announcement establishes permanent legal provisions around the restriction.
The ban aligns with the government’s broader push to support domestic manufacturing capacity at a time when the 44 percent US tariff threatens to squeeze export-oriented producers and the energy crisis drives up operating costs across the industrial sector.
